Quantum is the Latin word for amount. You may see the term used in short term insurance, such as car insurance when referring to the quantum of a loss; or the quantum of the damages incurred as well as the quantum of the settlement – in each case the meaning  refers to the amount.

When you as an insured person institute a claim on your car insurance policy the insurance company will first establish if they are legally liable to meet your claim. They will do this by checking if the peril or risk you are claiming against is indeed an insured peril or risk included in your policy. Once that is confirmed the process will start to establish the quantum of your claim. If your car was damaged in an accident the insurance company assessor will establish the quantum. A quotation from a panel beater will be required to establish the quantum of the settlement.

From the settlement quantum will follow deductions for items such as the excess payable and possible under-insurance if applicable. Under-insurance is calculated by using the average clause. Please see the glossary item for average clause for a full description of the term.