Definition
Remuneration is the payment of a service rendered. This
includes any bonuses and salaries. Remuneration is typically in
monetary terms but sometimes the compensation is in replacement
of the loss.
A recompense for a loss; compensation
In the context of insurance
In the context of insurance, remuneration or compensation means
been paid out when the act you are insured for happens.
It is often hard to see insurance as a service, but that is
exactly what it is.
And you need to confirm beforehand how your insurance company
will be remunerating you.
Often you can assume that because you are insured for $xx.xx
that you will receive that amount. But that is not always the
case. 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. Some
examples would be:
*Auto Insurance, (Accident). The insurance company will only
remunerate the ’scrap’ value of the vehicle.
*Auto Insurance, (Theft). The insurance company will only
remunerate you in 3 or 6 months in the hope of the car been
recovered.
*Auto Insurance. The insurance company will remunerate what ever
is cheaper, (and often less advantageous for you), repair of the
vehicle or scrap value or even book value.
*Recreation vehicle insurance. You might have to prove that you
used the vehicle within the manufacturer limits. Something that
is almost always impossible to achieve.
Remuneration vs Compensation
Remuneration is the payment for a service or to recompense for
losses. Insurance can be viewed as a service.
Compensation is the act of compensating, or the act of receiving
remuneration.
In the context of insurance both terms are interchangeable. You
either get compensated for your losses or the insurance company
offers you remuneration for your losses.
Conclusion
When it comes to insurance remuneration you need to make sure
that 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?
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