An unforeseen and unintended event or occurrence causing damage/injury to an entity.
Provides for payment of an additional benefit equal to the sum assured in installments on permanent total disability and waiver of subsequent premiums payable under the policy.
Stipulated minimum and maximum age limit stated by the company. Based on the age limit, the company will accept/reject applications or renew policies.
An insurance company representative licensed by the state that solicits, negotiates or effects contracts of insurance, and provides service to the policyholder on behalf of the insurer.
These plans provide for a ‘pension’ (or a mix of a lump sum amount and a pension) to be paid to the policyholder or his spouse. In the event of the death of both the spouses during the policy period, a lump sum amount is provided to the next of kin.
Supplied by the insurance company, usually filled in by the agent and medical examiner (if applicable) on the basis of information received from the applicant. It is signed by the applicant and is part of the insurance policy if it is issued.
Assignment means legal transference. It is a means whereby the beneficial interest, right and title under a policy gets transferred from Assignor to Assignee. ‘Assignor’ is the policyholder who transfers the title and ‘Assignee’ is the person who derives the title from the Assignor.
The person receiving annuity benefits at fixed intervals of time. (Which is on a yearly / half yearly/ quarterly or monthly basis).
The person(s) or entity (ies) (e.g. corporation, trust, etc.) named in the policy as the recipient of insurance proceeds upon the death of the insured.
A policy, which primarily provides coverage of benefits to a business as contrasted to an individual. It is issued to indemnify a business for the loss of services of a key employee or a partner who becomes disabled.
A contract of health insurance that may be cancelled during the policy term by the insurer or insured.*
Convertible Whole Life Policy:
- A provision under which an insured who carries less than the stipulated percentage of insurance to value, will receive a loss payment that is limited to the same ratio which the amount of insurance bears to the amount required.
- A policy provision frequently found in medical insurance, by which the insured person and the insurer share the covered losses under a policy in a specified ratio, i.e., 80 per cent by the insurer and 20 per cent by the insured.
A mix of ‘whole life policy’ and ‘endowment policy’, it provides for very low insurance premiums with maximum risk cover while the life assured is just beginning his working career, and the possibility of converting the policy to an ‘endowment’ policy after five years of commencement.
Cooling off period:
The scope of protection provided under a contract of insurance; any of several risks covered by a policy.
The 15-day period during which a new policyholder can cancel an insurance/assurance policy. This is referred to in the cancellation notice, which is sent to people entering into long-term policies. The 15-day period starts from receipt of the cancellation notice.
Period between the date of subscription to an insurance-cum-pension policy and the time at which the first installment of pension is received. Such policies generally prescribe a minimum and maximum limit on the deferment period.
Double/Triple Cover Plans:
A decrease in the value of property over a period of time due to wear and tear or obsolescence. Depreciation is used to determine the actual cash value of property at time of loss.
These offer to the beneficiaries’ double/triple the sum assured on death of life assured during the term of the policy. On survival to the date of the maturity, the basic sum assured is paid to the assured. These are low-premium plans, most useful for situations such as housing.
An annuity contract that is purchased either with a single tax-deferred premium or with periodic tax-deferred premiums over time. Payments begin at a predetermined point in time, such as retirement.
Fraudulent use or taking of another's property or money which has been entrusted to one's care.
Excess And Surplus Insurance:
The assured has to pay an annual premium, which is determined on the basis of the insured's age at entry and the term of the policy. The insured amount is payable either at the end of specified number of years or upon the death of the insured person, whichever is earlier.
- Insurance to cover losses above a certain amount, with losses below that amount usually covered by a regular policy.
Insurance to cover an unusual or one-time risk, e.g., damage to a musician's hands or the multiple perils of a convention, for which coverage is unavailable in the normal market.
Exclusions: Specific conditions or circumstances for which the policy will not provide benefits.
A type of reinsurance in which the reinsurer can accept or reject any risk presented by an insurance company seeking reinsurance.
A life insurance policy providing insurance on all or several family members in one contract, generally whole life insurance on the principal breadwinner and small amounts of term insurance on the other spouse and children, including those born after the policy is issued.
A person who holds something in trust for another.
Coverage for losses caused by fire and lightning, plus resultant damage caused by smoke and water. Flood insurance Coverage against loss resulting from the flood peril, available at low cost under a programme developed by the Central government.
A form of insurance in which individual policies are issued to the employees of a common employer or the members of an association under an arrangement by which the employer or association agrees to collect the premium and remit them to the insurer.