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, 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.
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 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.
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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