Kárérték

Kárérték, literally meaning "loss value" or "damage value" in Hungarian, denotes the monetary value of damage or loss resulting from an adverse event. It is used primarily in insurance, risk management and accounting to quantify how much a covered event costs or would cost to remedy.

In insurance, the kárérték represents the amount for which a claim may be made or indemnity determined. It can reflect actual costs incurred, such as repair or replacement expenses, or a value established for compensation under policy terms. The precise meaning depends on the valuation method chosen by the policy or contract (for example replacement cost vs actual cash value).

Valuation methods: For property damage, kárérték may equal the repair bill, or the cost to replace the item, possibly adjusted for depreciation. For business interruption, it can include lost profits and extra expenses. In personal injury, it may cover medical costs and wage losses. Insurers and loss adjusters assess the kárérték based on evidence, appraisals, and policy provisions.

Use in risk assessment: In actuarial and risk management, the kárérték is combined with the probability of events to estimate expected loss and determine capital reserves or premiums. It is also a reference point in settlements and claims settlements.

Terminology: In Hungarian-language texts, kárérték is commonly used alongside kárösszeg (loss amount) and kártérítés (compensation). While related, these terms emphasize different aspects: loss value, claimed amount, and payable indemnity, respectively.