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Faq

  • What do I do if I need to make any changes to my policy or e IA? Do I submit a request to the Insurance Company or to the Insurance Repository?

    It is best to submit ALL requests in respect of either your e IA or any of your electronic policies to the Insurance Repository. If the changes are with respect to an account level detail (like address or phone number), the Insurance Repository will execute the change after the necessary KYC verification, if any. The Insurance Repository will then intimate the changes to all the Insurance Companies whose policies are held in that e IA, so that the changes are effected in all the policies, in one go (so there is no need for the policy holder to approach the various insurance companies individually for the changes).

    In case of any changes at the policy level, the Insurance Repository is expected to forward the request to the respective insurance company and ensure that the same is executed and reflected in the electronic policy held with the Insurance Repository.

  • Should I use insurance as an investment?

    The primary objective of taking an insurance policy is to insure you and should be looked as an investment tool only as the secondary objective. You could use some of the insurance policies as means of investment. There are various policies offered by the insurance companies. These policies offer a fixed guaranteed rate of return or a market-linked rate of return.

  • What is Grace Period?

    It is a provision given to the policy holders to pay premium in the next 15-30 days since he fails to pay it before due date. This period of 15-30 days is called as grace period.

  • What is Fund Value and how it is determined?

    The value of policy is the fund value. In simple terms, it is the total value of units that you hold in funds.
    Fund Value = (Number of equity fund units x NAV of equity fund) + (Number of bond fund units x NAV of bond fund) + (Number of money market fund units x NAV of money market fund)

  • What is unit linked insurance plan?

    ULIPS provide for benefits of protection and flexibility in investment, it is insurance cum investment plan. The allocated premiums will be applied to purchase units as per the fund type based on the ongoing NAV. NAV is the value per unit of the scheme. They provide multiple benefits like life protection, investment and savings flexibility, options to take additional covers, tax planning, etc. but they are riskier compared to other schemes.

  • What are the basic elements of Life Insurance?

    The two basic elements of life insurance are Risk coverage (i.e. Term Insurance) and savings for the future (i.e. Pure Endowment)

  • What are the Tax benefits applicable to me if I invest in a Life Insurance Policy?

    If you invest in life insurance policy, you will get deduction under Section 80 C of the income tax act, 1956 of the premuim paid within overall limit of Rs. 1.50 lacs per year along with other eligible items like Provident fund, EPF, NSC, ELSS, tuition fee, repayment of home loan etc. However in case the amount paid towards life insurance premium exceeds 10% of the amount of the sum assured, you will get the deduction only upto 10% of the sum assured. Moreover When the maturity proceeds are received the same will be fully exempt if the premium paid on such policy did not exceed 10% of the sum assured in any of the year.

  • What should I do if I lose/misplace my insurance policy?

    If you misplace your policy then you can ask for a duplicate document from the insurance company. However, you will receive a duplicate policy only after paying the necessary fees coupled with executing an indemnity bond.
    The verification process will be conducted by the insurance company and you need to carry a premium receipt and an identity card.

  • Who is an Authorized Representative (AR)?

    A policy holder who opens an e IA shall appoint an Authorized Representative (AR) who shall be entitled to access the account in the event of demise of the policy holder or in his incapacity to operate the e Insurance Account. The AR is entitled only to access the e IA so as to know the portfolio of insurance policies and the nominees of the respective policies held under that account. The Policy Holder can change the AR, at his discretion, during the term of the eIA. The AR is different from a nominee and has only access rights to the e IA in the event of demise of the policy holder.

  • Should I take Life Insurance?

    A person who have dependents (especially if they are the primary provider) or significant debts that outweigh ones assets, then you need insurance to ensure that your dependents are looked after if something happens to you.

    However, buying life insurance doesn't make sense for everyone. If you have no dependents and enough assets to cover your debts, survivor living expenses, outstanding life goals and the cost of dying (funeral, estate lawyer's fees, etc.), then insurance is an unnecessary cost for you.
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insurance glossary

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A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

  • Abstract

    A brief history of title to land

  • Accelerated death benefit

    A percentage of the policy?s face amount, discounted for interest, that can be paid to the insured prior to death, under specified circumstances. This is in lieu of a traditional policy that pays beneficiaries after the insured?s death. Such benefits kick in if the insured becomes terminally ill, needs extreme medical intervention, or must reside in a nursing home. The payments made while the insured is living are deducted from any death benefits paid to beneficiaries.

  • Accident & Accidental Death Benefit

    In the context of life insurance, accident or accidental death is defined as a sudden and unforeseen happening that causes disability or death of the policyholder.

  • Accident and health insurance

    Coverage for acci-dental injury, accidental death, and related health expenses. Benefits will pay for preventative services, medical expenses, and catastrophic care, with limits.

  • Accidental death benefit

    An endorsement that pays the beneficiary an additional benefit if the insured dies from an accident.

  • Accidental Death Insurance

    Accidental Death Insurance provides coverage in the event of death due to accidental injuries, but not illness. In the event of death, payment is made to the insured\'s beneficiary. And most of these covers provide for cases for bodily injury (e.g., the loss of a limb), where the insured receives a specificed sum.

  • Accounts receivable (debtors) insurance

    Indemnifies for losses that are due to an inability to collect from open commercial account debtors because records have been destroyed by an insured peril.

  • Accumulation Period

    The time interval between the commencement of the policy and the time when benefits are paid out. It is established by the insured.

  • Activities of daily living

    Activities-such as eating, bathing, toileting, dressing, and continence-that trig-ger payment in a long-term care insurance policy, if at least some of them cannot be performed by the insured.

  • Acts of god

    Perils that cannot reasonably be guarded against, such as floods and earthquakes.

  • Actual cash value

    A form of insurance that pays damages equal to the replacement value of damaged property minus depreciation.

  • Actual loss ratio

    The ratio of losses incurred to premiums earned actually experienced in a given line of insurance activity in a previous time period.

  • Actuarial cost assumptions

    Assumptions about rates of investment earnings, mortality, turnover, salpatterns, probable expenses, and distribution or actual ages at which employees are likely to retire.

  • Actuarial Cost Method

    A method that determines contributions that would be made under an insurance plan.

  • Actuary

    An insurance professional skilled in the analysis, evaluation, and management of statistical information. Evaluates insurance firms? reserves, determines rates and rating methods, and determines other business and financial risks.

  • AD&D

    Accidental Death and Dismemberment Benefits

  • Additional insureds

    Persons who have an insurable interest in the property/person covered in a policy and who are covered against the losses outlined in the policy. They usually receive less coverage than the pri-mary named insured.

  • Additional living expenses

    Extra charges covered by homeowners policies over and above the policy-holder?s customary living expenses. They kick in when the insured requires temporary shelter due to damage by a covered peril that makes the home temporarily uninhabitable.

  • Adjustable Life Insurance

    A facility allowing a life insurance policy owner to change the insurance plan, increase or decrease the premium and make changes in the protection period.

  • Adjuster

    An individual employed by a property/cas-ualty insurer to evaluate losses and settle policyholder claims. These adjusters differ from public adjusters, who negotiate with insurers on behalf of policyhold-ers, and receive a portion of a claims settlement. Inde-pendent adjusters are independent contractors who adjust claims for different insurance companies.

  • Admitted company

    An insurance company licensed and authorized to do business in a particular state or country.

  • Adverse selection

    The tendency of those exposed to a higher risk to seek more insurance coverage than those at a lower risk. Insurers react either by charging higher premiums or not insuring at all. In the case of natural disasters, such as earthquakes, adverse selection concentrates risk instead of spreading it. Insurance. works best when risk is shared among large numbers of policyholders.

  • Affinity sales

    Selling insurance through groups such as professional and business associations.

  • Affirmative warranty

    An agreement between an insurance company and an agent, granting the agent authority to write insurance from that company. It specifies the duties, rights, and obligations of both parties.

  • After Tax Rupees

    This refers to the disposable income that the policy holder has in his hands after paying all tax dues during a particular financial year under the Income Tax Act.

  • Age Limits

    The maximum and minimum ages above or below which an insurance company will not accept applications for insurance from or will not renew a policy with a person.

  • Agent

    Insurance is sold by two types of agents: inde-pendent agents, who are self-employed, represent several insurance companies and are paid on commission, and exclusive or captive agents, who represent only one insurance company and are either salaried or work on commission. Insurance companies that use exclusive or captive agents are called direct writers.

  • Agent (Life Advisor)

    A representative of an insurance company authorized to sell insurance policies.

  • Aggregate deductible

    A type of deductible that applies for an entire year in which the insured absorbs all losses until the deductible level is reached, at which point the insurer pays for all loses over the specified amount.

  • Aggregate limits

    A yearly limit, rather than a ?per occurrence? limit. Once an insurance company has paid up to the limit, it will pay no more during that year.

  • Aleatory contract

    A legal contract in which the outcome depends on an uncertain event. Insurance contracts are aleatory in nature.

  • All-risk agreement

    A property or liability insur-ance contract in which all risks of loss are covered except those specifically excluded; also called ?open perils policy.?

  • Alternative dispute resolution (ADR)

    Alternative to going to court to settle disputes. Methods include arbitration, where disputing parties agree to be bound to the decision of an independent third party, and mediation, where a third party tries to arrange a settlement between the two sides.

  • Alternative markets

    Mechanisms used to fund self-insurance. This includes captives, which are insurers owned by one or more non-insurers to provide owners with coverage. Risk-retention groups, formed by members of similar professions or businesses to obtain liability insurance, are also a form of self-insurance.

  • Ancillary charges

    In hospital insurance, covered charges other than room and board.

  • Annual statement

    Summary of an insurer?s or rein-surer?s financial operations for a particular year, including a balance sheet.

  • Annual-premium annuity

    An annuity whose purchase price is paid in annual installments.

  • Annuitant

    : An individual receiving benefits under an annuity.

  • Annuity Certain

    An insurance contract that provides an annuity for a certain number of years, irrespective of whether the insured is alive or dead.

  • Annuity Consideration

    The payment that an annuitant makes for an annuity.

  • Annuity units

    A measure used in valuing a variable annuity during the time it is being paid to the annui-tant. Each unit?s value fluctuates with the performance of an investment portfolio.

  • Apportionment

    The dividing of a loss proportion-ately among two or more insurers that cover the same loss.

  • Appraisal

    A survey to determine a property?s insura-ble value, or the amount of a loss.

  • Arbitration

    Procedure in which an insurance company and the insured or a vendor agree to settle a claim dispute by accepting a decision made by a third party.

  • Arson

    The deliberate setting of a fire

  • Assessable policy

    A policy subject to additional charges, or assessments, on all policyholders in the company.

  • Asset-backed securities

    Bonds that represent pools of loans of similar types, duration and interest rates. Almost any loan with regular repayments of principal and interest can be securitized, from auto loans and equipment leases to credit card receivables and mortgages.

  • Assign

    To use life insurance policy benefits as collat-eral for a loan.

  • Assignee

    Assignee is the person to whom the title, rights and benefits under a life policy are assigned.

  • Assignor

    Assignor is the policyholder who transfers the title, beneficial interest and rights under the policy to another individual.

  • Asymmetric information

    An insured?s knowledge of likely losses that is unavailable to insurers.

  • Attained Age

    It is your current age.Your attained age is one of the factors life insurance companies use to determine your premiums. As the older you are, the probability of death during the period of insurance cover i.e life insurance risk increases and so does the premium. Higher the risk, higher the premium.

  • Authority

    The Insurance Regulatory and Development authority, IRDA established under sub-section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999 is the regulator for the insurance sector.

  • Auto insurance premium

    The price an insurance company charges for coverage, based on the frequency and cost of potential accidents, theft and other losses.

  • Automatic coverage

    An insurer agrees to cover accidents from all machinery of the same type as that specifically listed in the endorsement.

  • Automatic treaty

    An agreement whereby the ceding company is required to cede some certain amounts of business and the reinsurer is required to accept them.

  • Average adjusters

    A name applied to claims adjusters in the field of marine insurance.

  • Aviation insurance

    Commercial airlines hold prop-erty insurance on aeroplanes and liability insurance for negligent acts that result in injury or property damage to passengers or others. Damage is covered on the ground and in the air. The policy limits the geographical area and individual pilots covered.
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