Consumers: Life » Glossary

This is an international agreement specifying airline liability for injury or loss sustained by passengers and their baggage.

Insurance against damage to crops as a result of hail.

Weighted index of listed companies that represent about 70% of the total market capitalisation of the Hong Kong Stock Exchange.

A market condition that allows insurer’s and reinsurer’s to agree policy terms and premiums with insured or reinsured that is more favourable to the insurer or reinsurer than in the recent past.

_ A condition, operation, activity, material or combination of any of these, which creates or increases probability of loss. _ Chance of occurrence of an event.

Hazard arising from personal characteristics such as habits, method of management, financial standing, mental condition and integrity.

Hazard arising from the physical characteristics of animate or inanimate objects

Capital earnings with their tax effects stripped out to show their sustainable earnings.

The overall measure of inflation, which is calculated as the year-on-year percentage change in the prices of a select basket of consumer goods and services.

An event relating to the health of the mind or body of a person or an unborn.

Insurance providing for the payment of benefits as a result of sickness or injury. Includes various types of insurance such as accident insurance, disability income replacement insurance, medical expense insurance, accidental death, dismemberment insurance and hospital cash plans.

The death of portion of the heart muscles as a result of inadequate blood supplies to the relevant area.

Protect against the risks arising from potential movements in share prices, interest rates or other variables. A transaction in which an investor seeks to protect a position or anticipated position in the spot market by using an opposite position in related instruments such as derivatives. A perfect hedge is one that eliminates the possibility of future gain or loss. The futures and options markets provide the opportunity to hedge against adverse price movements.

Funds which usually focus on absolute-return orientated investments and that employ varying investment techniques to achieve superior risk-adjusted returns.

An investment to counteract the effect of a main investment possibly going wrong.

A person or institution who benefits from a will.

Risks where steps have been taken to reduce the frequency and severity of claims. Such actions usually result in reduced premiums.

Unlawful seizure of a motor vehicle or an aircraft

An insurance policy protecting a homeowner against damage or loss to property.

A policy which provides for payment of a fixed amount per day or week in the event of the insured being hospitalised. The payment is for the duration of the hospital stay.

A clause used in excess of loss reinsurance treaties which limits the time period and/or geographical scope in respect of which the reinsurer is at risk in respect of a particular catastrophic hazard

Portfolio that is run according to the best investment view of a manager, including asset allocation, sector allocation, share selection, etc.

This covers loss or damage in respect of domestic contents. house owners insurance This covers loss or damage to the home of the insured from a variety of perils, essentially fire and allied perils.

In terms of Section 19(5) of the Pensions Funds Act, a fund may grant housing loans to members using their share of the fund as collateral, normally through a third party service provider.

Insurance against loss of or damage to an aircraft, ship and other air and water borne craft.

This category was created because the Marriott Property Equity Fund did not fit into any of the other categories. It invests in equities, but its income is taxed as interest.