It’s important to us to explain the complex topic of the occupational benefit scheme as comprehensibly as possible. However, sometimes we cannot get around using technical terms. In our glossary we explain these technical terms briefly and in a reader-friendly manner.
Incapacity to work
Refers to a person who, in the judgement of a doctor, is no longer fit to work in his or her previous job or previous workplace for health reasons. Incapacity to work is not synonymous with disability.
An insurance policy is an insurance contract in which the rights and obligations of the contracting parties are stipulated. It merely serves to prove the content of the contract and especially define who is the policyholder, the insured person and the beneficiary. The document also indicates the amount of the insured cover, its term and the sums to be paid by the policyholder in the form of premiums together with their due dates. These detailed indications are to be found in the GCI and any special provisions that must occasionally be stipulated. They form an integral part of the policy. When the cover arrives at term, the policy must be made available to the insurance company.
Insured capital sum / amount
This is the amount stipulated in an insurance policy which becomes payable when an insured risk occurs. The parties concerned agree upon an insured sum which, in the insurance of objects, is calculated based on the value of the object.
the person whose property, assets or person forms the object of the insurance contract. This person is also entitled to benefits. Synonym: the insured.
In personal insurance:
the person upon whose life the insurance is arranged or for whom accident or sickness cover is agreed.
Invalidity (disability) insurance
Together with the AHV/AVS, the IV/AI invalidity insurance constitutes the first pillar of the triple-pillar system. As with the AHV/AVS, the IV/AI is mandatory. All persons living or exercising a lucrative activity in Switzerland or Swiss expatriates working for a Swiss employer are covered by the IV/AI. The Federal Law on Invalidity Insurance came into force on 1 January 1960. The primary objective of this invalidity insurance is the rehabilitation of insured disabled persons. The latter have a right to a disability pension once the rehabilitation period is over and when the disability has lasted for 365 days without interruption. The amount of a disability pension depends essentially on the degree of seriousness of the disability. For married couples, in addition to a basic pension, the IV/AI also pays out supplementary pensions for the spouse and children.
Legal provisions which govern the capital investment of life insurance companies and occupational pension plans. They are based on the criteria of security, yield and liquidity. To this end, the authorities may draw up a catalogue of authorized investments or, on the other hand, proscribe others.