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Remuneration, when the insurance comes into action.
Definition Remuneration is the payment of a service rendered. Thisincludes any bonuses and salaries. Remuneration is typically inmonetary terms but sometimes the compensation is in replacementof the loss.A recompense for a loss; compensation In the context of insurance In the context of insurance, remuneration or compensation meansbeen paid out when the act you are insured for happens. It is often hard to see insurance as a service, but that isexactly what it is.And you need to confirm beforehand how your insurance companywill be remunerating you.Often you can assume that because you are insured for $xx.xxthat you will receive that amount. But that is not always thecase. The insurance company might offer a monthly remuneration,or to remunerate only when a certain event occurs. Insurance remuneration In some cases the remuneration might not as you expect it. Someexamples would be: *Auto Insurance, (Accident). The insurance company will onlyremunerate the 'scrap' value of the vehicle.*Auto Insurance, (Theft). The insurance company will onlyremunerate you in 3 or 6 months in the hope of the car beenrecovered.*Auto Insurance. The insurance company will remunerate what everis cheaper, (and often less advantageous for you), repair of thevehicle or scrap value or even book value.*Recreation vehicle insurance. You might have to prove that youused the vehicle within the manufacturer limits. Something thatis almost always impossible to achieve.Remuneration vs Compensation Remuneration is the payment for a service or to recompense forlosses. Insurance can be viewed as a service.Compensation is the act of compensating, or the act of receivingremuneration.In the context of insurance both terms are interchangeable. Youeither get compensated for your losses or the insurance companyoffers you remuneration for your losses. Conclusion When it comes to insurance remuneration you need to make surethat you have all the facts.*How will the insurance pay you out? *Are the expectations realistic, (what you need to prove)?*Is the waiting time before remuneration too long?Find out more about Insurance remuneration
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