Glossary on General Insurance Terms starting with V

V

VALID CONTRACT : Contract that is enforceable in the court of law

VALUATION CLAUSE : Clause appearing in Institute of Time Clauses and other hull clauses that provides the insured value is to be considered as required value for constructive total loss requirements and nothing related to the break up value is considered

VALUE : Worth of the property that is needed to be insured or which is damaged or lost

VALUED POLICY : Insurance contracts whereby sum insured related to insured property is deemed to be actual property value through the duration of the policy; claims related to total loss are settled without any adjustment that may otherwise arise on similar considerations as adequacy of sum insured, market value, etc.; marine insurance for cargo and hull plans are "valued policies"; under fire and burglary policies such facility is extended with regards to paintings, curios, valuables, pictures, antiques, and other arts

VARIABLE EXPENSES :  Expenses that vary in relation to the quantum of production or turnover volume; variable expenditures are eliminated while calculating gross profit of businesses for the purpose of determining sum insured under business interruption or consequential loss plan

VARIABLE QUOTA SHARE TREATY :  In quota share treaty, there may be retention with certain maximum for example 20%; this means on certain risks retention can be lower than this predetermined percent and is termed as variable quota share; there are corresponding variations related to maximum reinsurance with respect to these risks

VEHICLES LAID UP : Refers to comprehensive motor insurance being laid up in garage or not being used; subject to notice from the insured in advance during the period when vehicle is to be laid up, insurance provider restricts covering during this period for fire, burglary, and theft risks only; insured consequently will receive either of these benefits; part of the premium already collected by insurance company will be given to insured's credit during renewal or existing plan will be extended by a period that is equivalent to laid up duration through the charge of an additional premium for restricted coverage during the laid up time

VEHICLES SUBJECT TO HYPOTHECATION AGREEMENT :  It is not permissible for insurance companies to issue policies in joint names of pledge and registered owner of vehicles; coverage should be issued in registered owner's name only and pledges' interest is protected by using the appropriate endorsement

VEHICLES SUBJECT TO LEASE AGREEMENT :  Insurance cover cannot be issued in the joint names of lessor and leasee; policies should be issued in leasee name and lessor interest is protected through appropriate endorsement

VETERINARY HEALTH CERTIFICATE : Certificate issued by qualified vet on the health and value of an animal; is obtained when insurance is being applied for to determine only healthy animals are insured for their accurate value

VOID CONTRACT  :  Agreement that is not enforceable by law

VOIBADLE CONTRACT :  Agreement that can be enforced by law at the option of one or more of the contracting parties but not at the option of the other/s

VALUABLE PAPERS AND RECORDS INSURANCE : Inland marine or burglary insurance cover offering replacement of valuable papers, forms, and records

VOID POLICY : One that is inadmissible as evidence in the court of law