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General Insurance

Open cover

It is a mechanism by which all the shipments are covered automatically

Optionally Renewable Contract

A contract of insurance in which the insurer reserves the right to terminate that coverage at any anniversary or, in some cases, at any premium due date, but does not have the right to terminate coverage between such dates.

Package Policy

A combination of two or more individual polices or coverages into a single policy. A householder's policy, for example, is a package combining property, liability and theft coverages for the individual homeowner.

Permanent partial disablement

Permanent loss of use of one hand, one leg and/or one eye to an insured person

Permanent total disablement

The accident resulting in loss of utility of two limbs (two hands, two legs, two eyes, or a combination of one of each). PTD can be without loss of utility of limbs also, if the injury can result in permanent total disablement such as disfigurement of body or spinal injury etc.

Policy

Is the legal document that has the conditions of the insurance contract?

Policy Excess/Deductibles

Amount upto which no claim is paid under a policy.

Policy Period

The period during which a Policy contract affords insurance.

Policy Proof on interest

A clause in an open contract of marine insurance covering peculiar conditions of risk concerning anticipated freight e.g. if captain of a vessel has gone to pick up freight that is destroyed by some hazard he has suffered loss in terms of shipping fees. Protection by a PPI or FIA policy will indemnify him for the loss.

Policy reserves

The funds that an insurance company holds specifically for the fulfillment of its Policy obligations. Reserves are so calculated that, together with the future premiums and interest earnings, they will enable the company to pay all future claims.

Premium

It is the amount paid to secure an insurance policy.

Premium Notice

Notice of a premium due, sent out by the company or one of its agencies to an insured. Synonym for " Renewal Notice".

Premium Relief

Income Tax relief on qualifying Policies like Mediclaim, Bhavishya arogya etc.

Premium Restoration

The premium charges to restore an insurance or surety contract to its original amount after payment of a loss.

Premium Return

Premium returned to Policyholders principally on cancellation or partial cancellation of contracts, or on rate adjustments.

Pressure vessels

Pressure vessels are those where pressure is built up or maintained.

Professional Indemnity

It is a cover granted to professionals covering their legal liability for any claims arising out of professional misconduct.

Prohibited risk

Exposure or applicant which an insurer has decided it will not insure under any condition.

Proposal

It is an offer made to insurer for insurance protection.

Provisions

Words, sentences, and paragraphs in an insurance contract that specify the terms and limitations of the policy as well as the rights and obligations of the insured and the insurer.

Proximate Cause

It is the active efficient cause which sets in motion a train of events which bring about a result, without the intervention of any force started and working actively from a new independent source.

Repatriation Benefits(under Overseas mediclaim)

Expenses incurred to travel back to home country following sickness abroad.

Risk

The obligation assumed by the insurer when it issues a policy. The spreading of risk across a broad base of the population, adjusted for statistical probability, and the protection against catastrophic loss, is the entire purpose of insurance. For risk assumption purposes, death is viewed as a contingency. That is, although death is certain, its timing is unknown. The process of evaluating and selecting risk is known as underwriting.

Risk Management

It is the science of identifying evaluating and economic control or risks which affect the assests or earning capacity of an enterprise. It involves minimizing the adverse effect of a possible financial loss by identifying potential sources of loss, measuring the financial consequences of a loss occurring, and using controls to minimize actual losses or their financial consequences.

Rate

The pricing factor upon which the insurance buyer's premium is based.

Rated Policy

an insurance policy issued at a higher-than-standard premium rate to cover the extra risk where, for example, an insured has impaired health or a hazardous occupation.

Ratemaking

The statistical process by which insurers determine risks and pricing for the basic classes of insurance.

Rebating

Giving a consideration, usually all or part of the commission, to the prospect or insured as an inducement to by or renew. Rebating is prohibited by law.

Reciprocal insurance

Insurance done by insurance company at a reciprocal exchange. That is to say business is given to reinsurer by insurance co. and some business is placed by reinsurer with main insurer on a reciprocal basis.

Recurring Claim Provision (Relapsation)

A provision in a health insurance policies which specifies a length of time during which the recurrence of a condition is considered to be a continuation of a previous period of disability of hospital confinement.

Reinstatement

The resumption of coverage under a policy which has lapsed. 1. Reinstatement of loss 2. Reinstatement of sum insured following a loss.

Replacement Cost

The cost to repair or replace property at construction costs prevailing at time of loss. It is the cost to repair or rebuild property without any depreciation.

Risk Financing

Measures to finance the losses that do occur. Risk financing may be done by buying insurance or retention, which includes "self insurance".

Self-Insurance

Protecting against losses by setting aside your own money instead of using conventional insurance.

Short Term Coverage

Coverage that lasts less than one year in duration.

Short period policies

Policies issued for less than one year.

Short period rates

Percentage of annual premiums charged for short period policies

Subrogation

The legal process by which an insurance company, after paying for a loss, seeks to recover the amount of the loss from another party who is legally liable.

Salvage

Recovery made by an insurance company by the sale of property which has been taken over from that insured as a part of loss settlement. The remains of damaged vehicle or any other property.

Self-Insured Retention

A form of risk financing through which a firm assumes all or a part of its own losses.

Sickness Insurance

A form of health insurance providing benefits for loss resulting from illness or disease.

Temporary Total Disablement

Disablement suffered following an accident for a specific period of time.

Theft

If goods are stolen by a person who has legal access to the premises, then theft is said to have been committed.

Third party

Any person other than the two parties signing an insurance contract.

The Bill of Lading Act,1855

This act defines the character of the bill of lading as an evidence of the contract of carriage of goods between the shipowner and the shipper as an acknowledgement of the receipt of the goods on board of the vessel and as a document of title. The bill of lading is one of the various documents required in connection with settlement of marine cargo claims.

The Carriers Act,1865

This act defines the rights and liabilities of truck owners or operators who carry goods for public hire in respect of loss or damage to goods carried by them. The act also prescribes the time limit within which notice of loss or damage must be filed with the road carriers.

Tort

A civil wrong, other than a breach of contract, for which a court of law will afford legal relied, eg. harming another by an act of negligence in driving an auto.

Travel Accident Policy

A limited contract covering only accident while an insured person is traveling.

Treaty

An agreement between a reinsurer and a ceding insurer setting forth details of the reinsurance arrangement.

Twisting

The practice of inducing by misrepresentation, or inaccurate or incomplete comparison, a policyholder in one company to lapse, forfeit or surrender his insurance for the purpose of taking out a policy in another company.

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