| Terms
|
Description
|
| Proposer |
A person who requests to buy a policy for self spouse or child. |
| Proposal form |
This is a form to be filled by person who wishes to take a Policy. |
| Policy Holder |
A person in whose name Policy is taken |
| Premium |
Amount to buy a policy or installment |
| Agent |
Intermediate between Company and Policy Holder. |
| Insurer |
Insurance Company who sells policy & also gives money at the end of the period. |
| Contract |
Agreement between company and policy Holder.(One Giving and one taking) |
| Nominee |
A Person who receives the money on death. |
| Rider |
It can be taken along with normal policy for extra benefits |
| Sum Assured |
The limit of the policy amount or Risk Amount, Insurance |
| Claim |
Payment of sum assured on Death or maturity. |
| Risk & Peril |
Economic loss is risk and reason for risk is peril |
| Coroner (Investigator) |
A person who investigates in case of death cases |
| Medical Refree |
panel of Doctors who are appointed for Medical checkups. (not company employee) |
| Underwriter |
he is a company employee who decide to give the policy |
| Actuary |
A person who decides the premium, bonus etc., |
| Utmost Good Faith |
Declaration by the person that all information filled in the Proposal form are correct |
| Indemnity |
It is amount paid as per actual loss occurred applied for General insurance not applied for Life Insurance not as LI is value contract |
| Insurance Interest |
Policy taken on Near and Dear Ones( Profit if they are alive loss in cases of their death.) |
| Grace Period |
Extra time given for policy holder to pay the premium. Yearly/Half Yearly/Quarterly 30 days Monthly 15 days |
| Lapse |
Stop of benefits of policy for nonpayment of premium after grace period. |
| Revival |
A Process to Re-start a Policy |
| Endorsement |
A Process to make changes in the policy document. |
| Assignment |
A Process to transfer the rights or title to others.(Gift/loan) |
| Surrender |
After paying 3 full years premium a policy holder willingly returning the policy. |
| Income Tax 1961 |
Sec-80C (1 lac) 80D (20K) and 10 10D tax free Returns (Maturity and Death) |
| Micro Insurance |
A Policy for Low income group (SA 5K to 50K) Medicals (5K to 30K) Min Premium Rs 15 per week |
| MWP Act 1874 |
A special Act to protect the Women and up to 2 children |
| Ombudsman |
This is a Court where policy holder can file a case against the company in case of dispute. ( Max 20 lac and Decision 90 days) |
| Moral and Physical hazard |
Risk which is Externals is physical and risk for habits carelessness is intention is moral |
| Saving Products |
LIC, Bank, Post office, gold silver, MF shares etc., |
| Type of Insurance |
Life, Non-life and Re-insurance |
| Health Insurance |
Individual, Family floater, Group and daily hosp benefits. (Fixed days and fixed amount) |
| History of Insurance |
1921, 1938, 1956, 1818, 1999, 1874, 1986, 1999 |
| Human Life Value |
Every human being has a value (20 times of his Income) |
| E-sales |
Sales through Internet or direct sales. |
| Life Insurance Products |
Pure Term, Pure Endowment, Endowment ( child, money back) ULIP group insurance etc., |
| Pooling of Risk |
Similar risk faced by people, different people contribute premium |
| Mutual Understanding |
In a contract there are 2 parties they come together and agree for the same terms and conditions. |
| Paid up value |
If Premium is not paid after the grace period it can be converted into paid up policy as it will have some surrender value. |
| Inflation |
If price of goods and services increase and value of money fall |
| Fact Finding |
Collection of financial information from the customer ( age, family history, income etc.,) |
| Investment Priority |
High, low and Middle |
| Life Cycle |
Childhood, Young, Young married, with small child, with big child, pre-retirement etc., |
| Insurance Priority |
Protection, Income Protection, child education, Medical, Wealth Creation, Retirement2 |
