• Accidental Death And Dismemberment Benefit (AD&D)+

    It is a rider or supplementary life insurance policy which offers extra cover in case of accidental death or loss of any two limbs because of an accident. It is bought separately.

  • Accidental Death Benefit (ADB)+

    It is a life insurance benefit wherein the proceeds are payable to the beneficiary only if the insured dies by accident within the policy term.

  • Add-on / Riders+

    Add-ons / riders are the additional benefits that can be added to the existing policies by paying extra premium. It provides additional insurance coverage at minimal cost. You can choose to add one or all such riders depending on your requirements by paying an extra premium with your basic policy premium.

  • Allocation+

    It refers to the calculation of the amount of a firm's equity capital that is assigned to each plan undertaken by the firm.

  • Annuitization+

    It is a process of converting an annuity investment into the series of regular income payments for the lifetime of the annuitant.

  • Annuity+

    It is a specified income, which the annuitant will get at stated intervals for a fixed or a contingent period. Annuities are created by paying stipulated premium either by installments or in a single payment.

  • Anti-theft Discount+

    If you have an anti-theft device is installed in your vehicle then you can get discount on your car policy. Such a discount is called anti-theft discount.

  • Beneficiary+

    A person named by the insured to receive the proceeds or benefits accruing under a life policy is called a beneficiary.

  • Bi-fuel Kit+

    Bi-fuel kit is the extra cover offered in a car insurance policy for vehicles fitted with CNG/LPG engines. Your premium will be affected if your vehicle has a bi-fuel kit.

  • Bond Fund+

    It is the fund mainly invested in bonds, or other debt securities. It is also called debt fund. 

  • Broker+

    Broker is an intermediary selling different policies from different insurers depending upon the needs of the client. He is offered some percentage of commission on selling the policies and needs to have a license for it.

  • Cancellation of Policy+

    Cancellation of policy is ending up your policy before its due date or during the lock-in period. There might be charges for the same like the cancellation fee or payment of some percentage of the premium. These details are mentioned in the policy documents.

  • Capping+

    Capping is the predefined limit fixed by insurance companies that dictates how much maximum cover you will get under your insurance plan. For example, if you get hospitalized then the insurance company will only cover your expenses up to a certain limit. The room rent cap is fixed as a percentage of sum assured, typically 1%. That means if your sum assured is Rs.2 lakh, then you are eligible to stay in a room with a tariff of Rs.2,000.

  • Cashless Claim+

    During cashless health claim, the insured does not require to make any upfront payment at the time of treatment. Such claims are executed only if the insured is being treated in any of the network hospitals which have a tie up with the insurance company.

  • Cashless Facility+

    Cashless facility is the health insurance service in which if you are hospitalized with a network hospital you do not have to settle the bill with the hospital. Just you have to use your insurance card and avail the health facilities without transacting any physical money. The insurance company co-ordinates with the hospital and settles the bill.

  • Claim Free Years+

    If you don’t claim in a year it is called a claim free year. For every claim free year the insured will get a discount on car premium. For example, 5 claim free years or more entitles you to a 60%-70% discount on car insurance premiums.   

  • Claim Settlement+

    It is an agreement between insurer and insured to settle a legal claim with a payment..

  • Claim settlement ratio+

    Claim settlement ratio is calculated by dividing the total number of claims received by the total number of settled claims. If a life insurance company receives 1000 death claims and settles 950, the claim settlement ratio of that company would be 95%. The higher the claim settlement ratio of the company, the more favorable it would be for you to buy insurance policy from.

  • Co-payment or Co-pay+

    It is a type of insurance policy where the insured has to pay for a specified amount of out-of-pocket expenses for health care services at the time the service is rendered. The insurer will pay the remaining costs.

  • Coinsurance+

    It is a co-sharing agreement between the insurer and the insured under which the insured pays the percentage of the cost of a health care service. The health insurance company will pay the rest of the cost. 

  • Collateral+

    Collateral is a property also known as security which makes you eligible for having loan or credit card and does not require any guarantor in turn.

  • Comprehensive cover+

    Comprehensive cover is an extensive coverage that you’ll get against damage to your vehicle, loss of your vehicle , theft and damage to other people’s vehicle. You may have to pay high premiums to avail this cover but it will ensure that you and your vehicle are fully covered.

  • Comprehensive Coverage+

    Comprehensive coverage provides protection against damage caused to policyholder’s car due to natural or human calamities along with third party cover which compensate for the damage caused to another car/person/property.

  • Copayment+

    Copayment is a sort of agreement between the insured and insurer on the claim settlement amount. Here a percentage is pre-defined which is to be paid from insured's pocket on the total cost of the claim calculated. The percentage is being chosen by the insured.

  • Coverage+

    Coverage is the amount of risk or liability covered for an individual by the insurance company against unexpected or unwanted occurrences.

  • Critical Illness Insurance+

    It is a health insurance cover providing lump-sum amount to get your serious illness get treated properly. Every insurer has its own list of specific illness included under this category.

  • Critical Illness Rider+

    It is a rider added to the insurance policy to protect the insured against financial loss in the event of terminal illness. It covers medical and rehabilitation costs. The extra cover is equal to the sum assured on the base policy and is paid upon diagnosis of the illness.

  • Cumulative Bonus (CB)+

    Cumulative bonus means the amount by which your sum assured gets increased, if an insured does not raise any claim for a year. A specified percentage of sum assured is increased every year only if the policy is renewed without any break. The cumulative bonus begins with 5% of sum assured and can go as high as 50% of basic sum assured. It will go on accumulating as long as no claim is made by the insured.

  • Day Care Treatment+

    Day Care treatments are surgeries or procedures, which do not require hospitalization and can be finished within hours. Some of the day care treatments are radiotherapy, chemotherapy, incision of the prostrate, incision of the cornea, nasal sinus aspiration etc.

  • Death Benefit+

    It is the lump sum amount paid by the insurer to the nominee of the life insurance policy when the insured dies.

  • Death Claim+

    It is the benefit payable to the beneficiary on the event of the death of the life assured under the terms of the policy.

  • Deductible+

    The out-of-pocket amount that you have to pay for expenses before the insurance company covers the remaining costs is called deductible. Suppose you met with an accident and have to pay medical expenses of Rs. 4000. If your deductible is Rs. 1500, then you have to pay the Rs. 1500 first before the insurance company pays the remaining Rs. 2500.

  • Deferred Annuity+

    It is a type of annuity contract in which the payment of your income or installments are put into hold for the fixed interval of time. This type of annuity has two phases, savings phase and income phase. In saving phase you invest your money into the account, and in the income phase you receive the payments. For example, you can choose to defer annuity payments until you retire. A deferred annuity contract allows you to accumulate tax-deferred earnings during the term of the bond.  

  • Depreciation+

    As your valuable article ages it faces a depreciation or deduction because of the wear and tear. Especially, in case of cars, the value of car in comparison to manufacturer’s selling price is depreciated every year.

  • Domiciliary+

    Domiciliary hospitalization is termed to the condition when the patient/ insured where is unable to move to the hospital due to lack of beds or severely bad health. In such a case, he is being treated at home.

  • Entry Age+

    The entry age is the age of the insured person at the beginning of the insurance policy. Minimum entry age is the age below which a person cannot buy the policy whereas maximum entry age is the upper age limit to purchase a policy.

  • Equity Growth Fund+

    An equity growth fund is an open or closed-end fund that invests primarily in stocks, allowing investors to buy into the fund, and thus buy a basket of stocks more easily as compared to purchasing individual securities.

  • Exclusion+

    Exclusion informs about the actions eliminated from the coverage provided under a policy which might relate to certain risks, people, property or location.

  • Exclusions+

    Exclusion refers to anything the insurance company will not cover, ranging from a type of drug to a type of surgery. These exclusions can vary from plan to plan, and it is essential that you understand the plan exclusions before purchasing.

  • Floater Policy+

    A floater policy is an insurance plan that is tailor-made for families. It is quite similar to the individual health plan with an add-on benefit of providing health coverage for the entire family.

  • Free Look Period+

    Free look period is the time, generally 15 days, in which you can return the policy if you are not satisfied with the terms and conditions of the policy. If you return the policy within this period, the policy gets cancelled and the entire premium is paid back to you with zero or minimal deductions.

  • Fund Value+

    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)

  • Grace Period+

    Grace Period is the time provided to the policyholder over and above the exact due date to make the payment for the renewal premium without lapsing the policy or reducing any of the policy benefits. The grace period for annual, half-yearly and quarterly mode is 30 days, and for monthly mode, it is 15 days.

  • Guaranteed Period Annuity+

    Often individuals will choose a "guaranteed period" annuity as a way of protecting the capital invested in an annuity. The "guaranteed period" for an annuity is the initial period for which the annuity is guaranteed to be paid regardless of whether or not the individual dies during that specific period of time. The standard guarantee period is 5 years but it can also be pushed to 10 years.

  • Immediate Annuity+

    An annuity contract that is purchased with a single lump-sum payment and in exchange, pays an assured income that starts straight away is called immediate annuity.

  • Impaired Insurer+

    Impaired insurer is an insurance company that is potentially not capable of fulfilling its policy obligations, and has been placed under rehabilitation or conservation. An impaired insurer is not insolvent but does pose a potential threat to its policyholders.

  • Insured Declared Value (IDV)+

    Insured Declared Value is the maximum sum assured fixed by the insurer, which is provided on theft or total loss of vehicle. IDV is the current market value of the vehicle. If the vehicle suffers total loss, IDV is the compensation that the insurer will provide to the policyholder.

  • Life Annuity+

    Life annuity is an insurance product in which the annuitant receives a series of future payments for his/her lifetime after retirement. It provides financial support to the retirees and helps them maintain a similar standard of living as before retirement.

  • Liquid Fund+

    Liquid funds are a type of mutual funds that invest in securities with a residual maturity of up to 91 days.

  • Loading+

    Loading is an additional cost built into the insurance policy to cover losses which are higher than expected, arising from insuring a person who has a medical history or a risky job.

  • Loyalty Addition+

    Incentives given by an insurer as an additional benefit to the insured for keeping the policy in full force throughout the term of the contract is called loyalty addition.

  • Maturity Age+

    The date at which the face amount of a life insurance policy becomes payable by either death or other contract stipulation. Face amount is the sum of money for which an insurance cover is obtained, usually shown on the top sheet (face) of the policy.

  • Maturity Benefit+

    Maturity benefit is the sum assured along with accrued guaranteed additions and vested simple reversionary bonuses, which is payable in a lump sum on survival to the end of the policy term.

  • Modal Premiums+

    Modal premium is the premium that is payable on a premium due date. The frequency or mode of payment can be annual, half-yearly, quarterly, or monthly.

  • Mortality Charge+

    It is the amount charged every year by the insurer to provide the life cover to the policyholder on the life of the life insured.

  • No Claim Bonus (NCB)+

    No Claim Bonus (NCB) is one of the most important features of any car insurance policy as it helps in reducing the car insurance premiums. It is the reward that a policyholder will get for not making any claim against his policy. If you have car insurance for a year and you haven’t made a claim then you will get discount on your car insurance premium the following year.

  • Nominee+

    Nominee is the person selected by the policyholder to receive the benefit in case of death of the life insured.

  • Outpatient Dental+

    Outpatient dental refers to a patient who receives dental care but doesn’t require overnight hospitalization. He stays in the hospital for less than 24 hours.

  • Paid-up Benefit+

    Paid-up value is the reduced amount of sum assured paid by the insurance company, in case the policyholder discontinues the payment of premiums.

  • Policy Lapse+

    A policy lapses when the policyholder fails to pay the premium even within the grace period. In such a condition, the policy loses all its benefits.

  • Policy Term+

    Policy term is the total number of years for which the policyholder has to pay the premium. However, in some insurance policies the insurer gets the autonomy to choose a premium paying term less than the actual policy term.

  • Pre-existing waiting period +

    Pre-existing condition is a medical problem or health condition that was diagnosed or treated before enrollment in a new health plan or insurance policy. If you have a pre-existing condition, the insurance company may impose one year waiting period in which you cannot avail the benefits of the policy. This is called pre-existing waiting period. After completing the pre-existing waiting period you are entitled to the full benefits of the policy.

  • Pre-policy Check up+

    Pre-policy check up is a specially designed pre-insurance health check up plan that allows the insurers to diagnose & identify health risks of the policy applicants. It helps the insurers to understand the risk profile of clients better.

  • Premium+

    Premium is defined as the specified amount of payment required periodically by an insurer to provide coverage under a given insurance plan for a defined period of time.

  • Premium Payment Frequency+

    It is defined as the number of times that you decide to pay premium during the policy year. It can be either quarterly, half-yearly or yearly.

  • Premium Payment Term+

    Premium payment term is the total number of years for which the policyholder has to pay the premium.

  • Premium Redirection+

    Premium redirection is the process that enables you to change the allocation of your future premiums of your policy. You can change your investment preference by redirecting future premiums between different funds.

  • Pro-rata Premium+

    Pro-rata premium is the premium taken by insured for very short period. This type of insurance premium is charged on a monthly basis, and the policyholder can take out the insurance at any time during any given month, and the insurance takes effect immediately.

  • Reinstatement+

    Reinstatement is the term for making a life insurance policy active again after it has lapsed. Reinstating the policy would provide the insured with all the benefits of their original plan.

  • Reinstatement Period+

    Reinstatement period is the time span given by the insurer to revive your lapsed policy. To reinstate a policy, the insurance company will require the insured to pass through the full underwriting process.

  • Repatriation of Remains+

    In the unfortunate event when someone dies during a trip, the returning of that person’s remains to his home county or to a nearby funeral or cremation facility is called as repatriation of remains. This service also includes the transfer of the ashes of beneficiaries to their place of residence after cremation.

  • Revival Period+

    The period offered by the insurer to revive the policy and avail benefits pertaining to it is called as the revival period.

  • Rider+

    It is a provision of an insurance policy that provides additional benefits at additional cost. It is purchased separately from the basic policy.

  • Road Side Service+

    Road Service is designed to assist you in an urgent situation when the vehicle you are either driving or riding in breaks down. The roadside services includes towing, fuel delivery, lockout, battery jump-starts, and flat-tire change services.

  • Settlement+

    The payment of proceeds by an insurer to the insured to settle an insurance claim within the guidelines set in the insurance policy.

  • Social Insurance+

    Social insurance is a public insurance program that offers protection against various economic risks such as loss of income due to sickness, unemployment, or old age. The participation in social insurance is mandatory for all. Under this program, some percentage of premium is paid by you and the rest will be paid by the government. For example, in Universal Health Insurance Scheme for BPL, one of the social insurance programs, the premium amount to be paid annually is Rs. 300. From which Rs. 100 is paid by individual and the Rs. 200 is contributed by the government.

  • Solvency Ratio+

    Solvency ratio is one of the various ratios used to measure the ability of a company to meet its long term debts and other obligation. It quantifies the size of a company’s after tax income and indicates whether a company’s cash flow is sufficient to meet its short-term and long-term liabilities.

    Solvency ratio = (After Tax Net Profit + Depreciation) / Total liabilities

  • Spousal Policy+

    Spousal policy is an insurance policy that covers the spouse of the policyholder under the same plan.

  • Subrogation+

    Subrogation is the right for an insurer to pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid to the insured for the loss.

  • Sum Assured+

    Sum assured is the amount that your beneficiary will get if you die during the policy term.

  • Sum Insured+

    The sum insured is the maximum amount that the insurance company will pay in the event of a claim.

  • Surrender Value+

    Surrender value is the amount that the policyholder will get from the life insurance company if he decides to exit the policy before maturity.

  • Survival Period+

    A survival period is the expiration period that is dedicated to indemnification of claims which are created under the warranties and representations of an acquisition agreement. According to best practices, 12 to 24 months is considered as a normal survival period.

  • Switching+

    Switching is the process that enables you to shift the existing units of your unit-linked policy into a new fund without changing your future premium allocation. It allows the policyholder to shift the total number of units from one fund to another.

  • Term Insurance+

    Term insurance is a life insurance, which provides coverage at a fixed rate of payments for a limited period of time. It is the cheapest form of life insurance that provides full financial coverage for a defined period of time.

  • Terminal Illness+

    Terminal illness is a disease that cannot be cured or adequately treated and that is reasonably expected to result in the death of the patient within a short period of time. For example cancer, severe heart disease, AIDS etc.

  • Third Party Administrator (TPA)+

    The Third Party Administrators are intermediaries who connect insurance companies, policyholders and health care providers. Third party administrators are selected by IRDA to ensure that the policyholders get better services. The main role of TPA is to function as an intermediary between the insurer and the insured.

  • Third Party Insurance+

    If the beneficiary of a policy is someone other than the two parties involved in the contract, it is called 'third-party' insurance. It is an insurance policy purchased for protection against the actions of another party.

  • Top p+

    The top-up is the added amount over your regular premium that you can invest in. A top-up gives an advantage to boost the savings by means of investing, in addition to the regular premium.

  • Turnaround time (TAT)+

    Turnaround time is the time period that insurance companies take to address the concerns of the policyholder.  For example, Death Claims - settlement/repudiation with investigation have a turnaround time (TAT) of 6 months while maturity claims have TAT of 15 days.

  • Underwriter+

    A financial expert that evaluates the risks of insuring a particular person or asset and uses that information to set premium pricing for insurance policies is known as the underwriter.

  • Vesting Age+

    Vesting age is defined as the age at which you start receiving pension in an insurance-cum-pension plan.

  • Voluntary Deductible+

    Voluntary deductible is the minimum amount that you declare to bear at the time of claim. When you opt for a higher deductible, you are eligible for a higher discount. There is an inverse relationship between the deductible and the premium. When you choose to pay high voluntary deductible, your premium amount automatically falls. . Suppose your claim amount is Rs. 20000 and the voluntary deductible is Rs. 3000 then you have to bear the first Rs 3000 and the claim will be worth Rs 17000.

  • Waiting Period+

    Waiting period is defined as the time specified which must pass before your coverage can begin. It is also called cooling-off period. During this period claim cannot be made. It varies from 30 to 90 days from insurer to insurer.

  • Zero depreciation+

    Zero depreciation is a type of insurance cover that ensures that in case of an accident, you will receive the full claim without any deduction for depreciation on the value of the parts replaced. It is available on new cars and usually don’t cover cars that are more than three years old.