Insurance Terms, Glossary As Well As Lexicon - Price Of Insurance

1. Insurer

The fellowship which issues insurance policy is called insurer. Insurance fellowship is likewise called assurer or underwriter. Insurer agrees to pay compensation on the happening of uncertain in addition to unfortunate event.

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2. Insured

The mortal who is protected against uncertain losses in addition to who is paid a compensation past times the insurance fellowship is called insured or assured. He is a mortal 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 fellowship 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 in addition to weather condition of the insurance contract. It is a sealed document issued past times the insurance fellowship (i.e insurer). Influenza A virus subtype H5N1 policyholder (i.e insured) has to continue it safely for claiming compensation, if necessary.

6. Subject affair of insurance

It is the dependent area against which the insurance policy is taken. In life insurance, life of the assured is the dependent area matter. In burn insurance, goods / belongings / building, etc., is the dependent area matter. In marine insurance, cargo or shipping is the dependent area affair of insurance.

7. Claim

Claim is a need made past times the insured for compensating the loss to the dependent area affair of insurance. Insurance companies arrive at 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 arrangement past times which the master copy insurer enters into a contract amongst roughly other insurer for sharing a role or all the risks taken past times him. It is done when the total of opportunity covered is real high. The primary objective is to cut the opportunity of large contracts.

9. Double Insurance

Double Insurance takes house when the insured insures his belongings or goods amongst 2 insurance companies. In such a case, each insurer volition pay the proportionate total inwards instance of loss. If ane insurer agrees to pay the total compensation, in addition to therefore he tin claim the proportionate total from the other insurer. The primary objective is to ensure additional safety.

10. Actuary

Actuary is a professional person mortal appointed past times an insurance fellowship to arrive at advice close premium rates, insurance production development, investments, maintenance of accounts, etc.