Jargon explained - V

Definition
This is a scheme that's usually arranged by an employer for its employees but the employees choose and pay for the cover if they want it.

Explanation
Used when talking about types of medical insurance schemes.

These schemes are voluntary because the members choose to be members.

An example of a non-voluntary scheme would be where an employer pays the premiums for the members, and the members get membership as an employee benefit.

Definition
An excess accepted by the insured to obtain a premium reduction.

Explanation
Used when talking about policy excesses.

Voluntary excesses are chosen by policyholders as a way of reducing their premium. A voluntary excess is paid in addition to any compulsory excess.

Definition
Not legally binding, that is cannot be legally enforced.

Explanation
Used when talking about contracts, such as insurance contracts.