Category
General Insurance Terms
15 terms explained in plain English, with Indian context.
- AssignmentAssignment is the formal transfer of the rights and benefits of a life insurance policy from the policyholder (the assignor) to another p...
- Beneficial NomineeA beneficial nominee is a special category of nominee on a life insurance policy who, under the Insurance Laws (Amendment) Act 2015, rece...
- Cooling-Off PeriodA cooling-off period in Indian insurance commonly refers to the initial waiting period in a health policy — typically 30 days from the po...
- EndorsementAn endorsement is a written modification to an existing insurance policy, formally added by the insurer at the policyholder's request or ...
- Grace PeriodThe grace period is an additional window after the due date during which a premium can be paid without the policy lapsing.
- IndemnityIndemnity is the foundational legal principle of most non-life insurance contracts — the insurer agrees to compensate the policyholder fo...
- InsurerThe insurer is the legal entity — a registered insurance company licensed by IRDAI — that underwrites the policy contract and assumes the...
- LapseLapse is the technical term for the termination of an insurance policy because a premium was not paid by the due date or within the grace...
- Material DisclosureMaterial disclosure is the obligation on the insurance applicant — and on the insurer — to disclose, before the contract is concluded, ev...
- PolicyholderThe policyholder is the person or entity who owns the insurance contract and is legally responsible for paying premiums and making decisi...
- PremiumPremium is the amount a policyholder pays the insurer in exchange for coverage under a policy.
- Reinstatement of CoverReinstatement of cover is the process of restoring a lapsed insurance policy to active status, usually by paying the outstanding premium ...
- RevivalRevival is the process of restoring a lapsed life insurance policy to active status by paying the outstanding premiums with interest and,...
- Sum AssuredSum assured is the fixed payout that a life insurance policy promises the nominee when the insured person dies during the policy term.
- Sum InsuredSum insured is the maximum amount that a general-insurance or indemnity health policy will reimburse in a single policy year for covered ...