the person who enters into an insurance agreement for his/her own or somebody else’s account, the policyholder undertakes in the insurance agreement to pay the insurance premium.

Prevention fund

a target fund created by insurers for the financing of prevention-oriented activities; prevention fund can be created as a cost of insurer up to the amount of 1 per cent of premium written net of reinsurance.

Partial loss

the loss where the object insured has been damaged to such an extent that its repair is possible and economically justified.

Pecuniary compensation

one of the ways of compensating an intangible loss, lying in the payment of an adequate amount of money to the sufferer for the loss suffered. Compensation may be claimed in case of a bodily injury, health detriment, total or partial work disability, increase of needs, reduction of prospects for the future, deprivation of liberty as well as in case of dependency relation caused by means of a trick, violence or abuse, forcing someone to have sex, causing death of a close person and infringement of personal rights.

Proportional reinsurance

reinsurance contract in which the insurer and the reinsurer participate in the risk premium and damages in similar proportions.

PML (Probable Maximum Loss)

The highest probable damage which may arise with regard to the normal functioning of the installed security (firewalls, sprinklers, fire response time) used by insurers of so-called large risks for the assessment of risk exposures.


document containing the insurance contract. It accepts the Insurer’s liability for the loss caused by insured events


is the amount payable to the insurer for the insurance coverage