07/06/2023

Unlock the world of insurance with our ‘Understanding Insurance Terminology: A Comprehensive Guide’. Tailored for potential insurance buyers, this guide simplifies complex terms, helping you make informed decisions. Get ready to become fluent in insurance language, empowering you to choose the best coverage for your needs.

Coverage

The amount of money covered and provided to the insured under an insurance plan.

Premium

The amount paid by an insured for starting an insurance policy

Deductible

The amount to be paid by the insured before an insurance claim comes to action.

Policy

A contract between an insurer and the insured that contains the terms of an insurance claim.

Liability

Refers to the responsibilities held by a party towards another. It can be a third-party liability, product liability etc.

Risk management

It is the process of identifying, assessing, and mitigating risks associated with an insurance policy.

Claims

The request to the insurance provider to reimburse against the insured losses.

Underwriting

The process of identifying and calculating the worth of risk against which insurance is provided.

Insurer

The party that provides the insurance service. Ex: insurance company

Indemnity

An action wherein a party agrees to compensate the potential or prior losses of another party.

Protection

It refers to the financial risks the insurance covers

Reimbursement

The amount that is returned or refunded to the insured

Actuary

It is a professional with expertise in calculating financial risks associated with the product to be insured.

Riders

These are add-ons that can be enjoyed in addition to your insurance policy by paying extra.

Co-pay

The percentage of the insured amount the insured pays from their own pocket.

Comprehensive

An insurance policy that covers damages you cause on your own and by a third party.

Collision

The protection provided under car insurance when your car collides with an inanimate object.

Benefits

They refer to all the advantages an insurance policy covers.

Exclusions

They refer to the benefits an insurance policy does not cover.

Risk assessment

A process of calculating the worth of the asset against which insurance is taken in accordance with the risk associated with it.