1. Insurer
The companionship which issues insurance policy is called insurer. Insurance companionship is likewise called assurer or underwriter. Insurer agrees to pay compensation on the happening of uncertain too unfortunate event.
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2. Insured
The somebody who is protected against uncertain losses too who is paid a compensation past times the insurance companionship is called insured or assured. He is a somebody inwards whose favour insurance policy inwards issued. He is likewise called a policyholder.
3. Proposal
Proposal is a written asking made past times the proposer to the insurance companionship for insurance cover. Insurance companies provide printed proposal forms costless of accuse to the interested parties.
4. Premium
Premium is a periodical payment which the insured has to brand to the insurer inwards render for the insurer's guarantee to compensate his loss. It is a fiscal consideration payable to the insurer.
5. Policy
Policy is a written document which contains the contract of insurance. It contains price too weather of the insurance contract. It is a sealed document issued past times the insurance companionship (i.e insurer). H5N1 policyholder (i.e insured) has to proceed it safely for claiming compensation, if necessary.
6. Subject thing of insurance
It is the dependent plain against which the insurance policy is taken. In life insurance, life of the assured is the dependent plain matter. In burn downwardly insurance, goods / belongings / building, etc., is the dependent plain matter. In marine insurance, cargo or send is the dependent plain thing of insurance.
7. Claim
Claim is a need made past times the insured for compensating the loss to the dependent plain thing of insurance. Insurance companies plough over claim forms to policyholders for the giving claim. Claim is made on the happening of the event. For example, fire, flood, theft, death, etc.
8. Reinsurance
Reinsurance is a organisation past times which the master insurer enters into a contract alongside approximately other insurer for sharing a business office or all the risks taken past times him. It is done when the sum of opportunity covered is really high. The primary objective is to trim the opportunity of large contracts.
9. Double Insurance
Double Insurance takes house when the insured insures his belongings or goods alongside 2 insurance companies. In such a case, each insurer volition pay the proportionate sum inwards instance of loss. If i insurer agrees to pay the total compensation, too thus he tin claim the proportionate sum from the other insurer. The primary objective is to ensure additional safety.
10. Actuary
Actuary is a professional person somebody appointed past times an insurance companionship to plough over advice nearly premium rates, insurance production development, investments, maintenance of accounts, etc.
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