52 terms
A
B
Beneficiary
The person who ultimately receives the benefit of a policy.
Bonus (reversionary)
An addition declared by the insurer on participating policies; not guaranteed.
C
Cashless claim
A claim where the insurer pays an eligible hospital or garage bill directly, so you do not pay upfront except …
Claim settlement ratio
The proportion of claims paid out of those received by an insurer in a year.
Co-payment
The share of every claim you pay yourself, stated as a percentage. It lowers premium but raises your out-of-po…
Commutation
Taking part of a pension corpus as a lump sum instead of income.
Corpus
The total amount of savings built for a goal such as retirement.
Critical illness cover
A plan that pays a lump sum on diagnosis of listed serious illnesses.
D
Deductible
The amount you pay first before the insurer pays the rest of a claim.
Depreciation
The fall in a vehicle’s value with age, used to compute IDV.
E
Endowment plan
A life insurance plan that pays a lump sum at maturity or on death.
Exclusion
A situation or condition the policy does not cover.
F
Family floater
One health sum insured shared by all family members.
FATCA / CRS
Global tax-reporting rules that require financial institutions to collect your tax-residency details.
Free-look period
A window after receiving a life or health policy during which you can cancel it and get a refund, less certain…
G
I
IDV (Insured Declared Value)
The maximum amount payable if a vehicle is stolen or totally damaged, based on its depreciated value.
Inflation
The rate at which prices rise, reducing what money can buy over time.
Insurance Ombudsman
An independent authority that resolves complaints against insurers up to specified limits.
IRR (Internal Rate of Return)
The effective yearly return on money invested, useful for comparing savings plans.
J
K
L
M
Moratorium period
In health insurance, 60 months of continuous cover after which claims generally cannot be contested for non-di…
MWPA policy
A policy bought under the Married Women’s Property Act so proceeds go to the wife and children, protected from…
N
NCB (No Claim Bonus)
A discount on own-damage motor premium for each claim-free year, rising to 50%.
Nominee
The person you name to receive policy benefits if the insured person dies.
NPS (National Pension System)
A regulated retirement scheme with market-linked contributions and annuity rules on exit.
NRE / NRO account
Indian rupee accounts for non-resident Indians; NRE holds foreign earnings, NRO holds income earned in India.
O
OCI
Overseas Citizen of India card, a long-term visa-like status for people of Indian origin.
Own damage
The part of a motor policy that pays for damage to your own vehicle.
P
Portability
The right to move your health policy to another insurer at renewal while keeping credit for waiting periods al…
PPF
Public Provident Fund, a government-backed long-term savings scheme.
Pre-existing disease
A condition you already had or were diagnosed with before buying health insurance.
Premium
The amount you pay to keep an insurance policy active.
R
Revival
Reinstating a lapsed policy by paying overdue premiums and meeting conditions.
Rider
An optional benefit added to a base policy for an extra premium, such as accidental death or critical illness.
Room rent limit
A cap on hospital room charges in a health policy that can reduce related charges proportionally.
S
SIP
A fixed amount invested at regular intervals, usually monthly.
Sum assured
The amount payable on death, or on maturity for savings plans, under a life policy.
Sum insured
The maximum amount an insurer will pay in a policy year for health or general insurance claims.
Super top-up
A cover that pays after your claim in a year crosses a chosen deductible.
Surrender value
The amount paid if you end a life policy before its term, usually lower than total premiums paid.
T
Term insurance
Pure life cover for a fixed period with no maturity benefit.
Third-party liability
Cover for harm or property damage caused to other people by your vehicle.
TPA (Third Party Administrator)
A company that processes health claims on behalf of an insurer.
U
ULIP (Unit Linked Insurance Plan)
Life insurance where part of the premium is invested in market-linked funds, with a five-year lock-in.
Underwriting
The insurer’s assessment of risk to decide whether to offer cover and at what price.