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Hazard

A circumstance that increases the likelihood or probable severity of a loss. For example, an unattended lit cigarette is a hazard that increases the likelihood of a fire.

Hard Market

The insurance sales Cycle in which competitive pricing is a minimum as companies charge the premiums necessary to meet their underwriting losses in order to avoid insolvency.

Health Insurance

Insurance for financial relief resulting from illness or accidental bodily injury/ies. Included under this heading are various types of insurance such as accident insurance, disability income insurance, medical expense insurance, and accidental death and dismemberment insurance.

Heavy risk (in personal accident)

Heavy risk under Personal accident relates to People in occupations like motor racing, big game hunting,horse riding, pilots, crew of aircraft etc.

Hospice

Health Care facility providing medical care and support services such as counseling to terminally ill persons.

Hospital Expense Insurance

Health insurance protection against the cost of hospital care resulting from the illness or injury of the insured person

Hospital Indemnity

A form of health insurance which provides a stipulated daily, weekly, or monthly indemnity during hospital confinement. The indemnity is payable on an unallocated basis without regard to the actual expense of hospital confinement.

House Breaking

When the theft is committed entering into or out of the premises stealthily.

Hull Insurance

Class of ocean marine insurance that covers physical damage to the ship or vessel insured. Typically written on an "all-risks" basis

Hurricane

A tropical storm marked by extremely low barometric pressure and circular winds with a velocity of 75 miles an hour or more.

Indemnity

Legal principle that specifies an insured should not collect more than the actual cash value of a loss but should be restored to approximately the same financial position as existed before the loss.

Insurable Interest

A condition in which the person applying for insurance and the person who is to receive the policy benefit will suffer an emotional or financial loss, if any untouched event occurs. Without insurable interest, an insurance contract is invalid.

Insurance

Social device for minimizing risk of uncertainty regarding loss by spreading the risk over a large enough number of similar exposures to predict the individual chance of loss.

Insurer

Insurer is a company or organisation or entity offering Insurance coverage

IBNR

Incurred but not reported during the expiring financial year.

Imputed Negligence

Case in which responsibility for damage can be transferred from the negligent party to another person, such as an employer.

Incurred Claims

Incurred claims equal the claims paid during the policy year plus the claim reserves as of the end of the policy year, minus the corresponding reserves as of the beginning of the policy year. The difference between the year end and beginning of the year claim reserves is called the increase in reserves and may be added directly to the paid claims to produce the incurred claims.

Incurred-but-not-reported (IBNR) reserves

Liability account on an insurer's balance sheet reflecting claims that are expected based upon statistical projections but which have not yet been reported to the insurer.

Indirect Loss

The are the consequential losses as a result of physical dames resulting in stoppage of business.

Insurance Act,1938

The Act applies to the General Insurance Corporation of India and the four Subsidiary Companies subject to exceptions,restrictions and limitationsas specified by the Central Government under powers conferred by section 35 of the General Insurance Business Nationalisation)Act.The important provisions of the Act relate, among other things,to registrations,accounts and returns investments,limitations in expenses of Management prohibition of rebates, power of investigation. Licensing of agents, licensing of surveyors,advance payment of premium and tariff advisory Committee.

Jettison

It means throwing off some of the cargo from the ship to save the ship from sinking.

Key Employee

A key employee is an individual who may have special skills and makes a significant contribution to the business. Executives and managers may be considered key employees, in addition to certain shareholders who actively participate in the ongoing success of the business.

Key-Person Insurance

Insurance designed to protect a business firm against the loss of income resulting from the death or disability of a key employee.

Larceny

It is a theft committed by a chance visitor to the premises

Legal liability

Any liability imposed on a person by a court of law

Liability

Damages payable for acts of omission, commission or negligence

Loss Adjustment Expense

Expenses incurred in the process of evaluating, defending and paying claims.

Loss Avoidance

A risk management technique whereby an activity that may result in the loss for a firm is avoided or abandoned.

Loss control

Any conscious action (or decision not to act) intended to reduce the frequency, severity, of accidental losses.

Misrepresentation

Act of making, issuing, circulating or causing to be issued or circulated an estimate, an illustration, a circular or a statement of any kind that does not represent the correct policy terms, dividends or share of surplus or the name or title for any policy or class of policies that does not in fact reflect its true nature.

Non-cancelable policies

Such policies stay in effect regardless of whatever that might happen and as long as the premium is paid from time to time

Named Perils

Coverage in a property policy that provides protection against loss from only the perils specifically provided in the policy. Examples of named perils are fire, windstorm, theft, smoke, etc.

Negligence

Failure to use that care that a reasonable and prudent person would have used under the same or similar circumstance.

Net Premium

The portion of the premium rate which is designed to cover benefits of the policy, excluding expenses, contingencies and profit.

Net written premiums

Premiums income retained by insurance companies, directly or through reinsurance, after payments made for reinsurance.

No-Fault

A type of insurance mechanism whereby the right to sue another party for damages caused by negligence is limited and, in exchange, expanded first party benefits are offered. Mainly used in Vehicles insurance Policy.

Noncontributory

A term applied to employee benefit plans under which the employer bears the full cost of the benefits for the employees.

Nondisabling Injury

An injury which may require medical care, but does not result in loss of working time or income.

Nondisabling Injury Benefit

A benefit in some disability income policies providing payment for medical expense due to injury when medical care is necessary but the insured is not totally disabled.

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