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Insurance Glossary

Abandonment

For a damaged property it may not be worthwhile to go in for repairs because the cost of repairers may exceed the value of the property when repaired. The insurer is entitled to take over the interest of the assured in whatever may remain of the subject matter insured and all proprietary rights incidental thereto. In ocean marine insurance, the transfer by the insured to an insurer of all rights, title, and interest in and to the insured property, in return for the sum insured. In property insurance, abandonment is relinquishing ownership of damaged property to an insurer to permit a total loss claim to be made.

Absolute Liability

Liability for damages even though faults or negligence cannot be proven.

Accident

Any Unforeseen and unexpected event is considered an accident

Accident to Sponsor

Insurance Company shall reimburse the remainin school fee subject to maximum limit specific in the schedule, in the event of sponsor named in the schedule meet with accident during the policy period,which result in his dealth or permanent total disability.

Act of God

A Flood, an earthquake or other accident or event that is without any human intervention and that could not have been prevented by reasonable care or foresight, but is the result of natural causes

AD & D

Accidental Death & Disability

Agents

To be appointed by Insurers in conformity with training and certification criteria in the IRDA regulations

Agreed Value Policy

Under an Agreed Value Policy a specified sum agreed as the insured value of the vehicle is paid as compensation in case of Total Loss/Constructive Total Loss of the vehicle without any deduction for depreciation

Agriculture Insurance Company (AICL)

Agriculture Insurance Company of India Ltd opened for business in 2003. It was established in 2002 with the aim of promoting crop insurance business and to protect farmers against crop losses suffered due to natural calamities

Air Travel

Air Travel means the act of boarding an aircraft for the purpose of flying therein or alighting there from following a flight

Articulated Vehicle

Articulated Vehicle means a motor vehicle to which a semi trailer is attached

Aviation Insurance

Aviation Insurance covers damage to aircraft and liabilities to freight, passengers and third parties.

Bail Bond Insurance

Bail Bond Insurance means if the insured is arrested for any inadvertent law breaking during his/her travel overseas the company would pay the amount as mentioned in the schedule towards the bail amount for release

Boiler and Pressure Plant

Boiler and Pressure Plant cover damage (other than by fire) caused by explosions to the plant, to surrounding property of the insured and to third parties.

Broker

A marketing specialist who represents buyers for insurance and who deals with either companies in arranging for the coverage required by the customer.

Brokers

These can be either Direct Broker,Reinsurance Broker or Composite Broker (doing both Direct and Reinsurance broking). To be licensed by IRDA as per Broking Regulations

Burglary

Burglary means an act involving the unauthorized or forcible entry to or exit from the Insured's home or attempted threat with the intent to commit an act of crime therein

Certificate of Insurance

In Motor Insurance, in addition to the policy a certificate of insurance is required by Motor Vehicles Act. This certificate provides evidence of insurance to Police and Registration authorities (R T O). It contains the essential features of the cover, including the terms and conditions.

Certificate of Registration

Certificate of Registration means the Certificate issued by Competent Authority to the effect that a motor vehicle has been duly registered in accordance with the provisions of the Act

Checked-In Baggage

Checked-In Baggage means the baggage handed over by the Insured and accepted by Common carrier for transportation in the same carrier in which the Insured is or would be travelling and for which the Common carrier has issued a baggage receipt to the Insured

Claim

A claim refers to the payment made by the insurer to the insured/or nominee on the occurrence of the event specified in the contract, in return for the premiums paid by the policy holder

Commencement Date

Commencement date of Policy shall be the inception date of first Insurance policy for that Insured Person, with out any break in period of cover

Commerical Private Vehicles

Goods Carrying vehicles define a "private carrier"as an owner of a transport vehicle other than a public carrier who uses the vehicle solely for the carriage of goods which are his property or the carriage of which is necessary for the purpose of business not being business of providing transport

Common Carrier

Common Carrier means any commerical airline or ship or vessel operating under a license from the relevant authority for the transporation of passengers and cargo for hire

Common Carrier AD & D

The policy will pay amount as specified if the insured sustain Accidental Death & Disability in the course of journey while travelling in common carrier such as rail,bus, train or aircraft operated with a valid license to transport passengers for hire

Contribution

If at the time of a claim under this Policy, there is any other insurance company covering the same loss, Any of the insurance co shall not be liable to pay more than our rateable proportion of the loss / expenses.

Cover Notes

The Motor Cover Note incorporates a certificate to the effect that it is issued in accordance with the provisions of Chapters X and XI of the Motor Vehicles Act, 1988. Although the cover note is not stamped, it nevertheless represents the same insurance as that provided by the policy. The cover note is temporary and will be superseded once the policy is issued.

Deductible excess

Deductible excess means the amount of expenses to be incurred by the Insured before the compensation under cover shall become payable and shall not be reimbursed by the Company

Deferred annuity

In a Deferred annuity annuitant keeps making periodic payments to the insurance company for a specified period and the annuity payments start after teh deferment period

Disease

Disease means a condition affecting the physical well being and health of the body

Driver

Driver includes,in relation to a motor vehicle which is drawn by another motor vehicles,the person who acts as steerman of the drawn vehicle

Driving License

Driving License means the license issued by a Competent Authority under Chapter II of the 1988 Act authorising person specified therein to drive,otherwise than as a Learner, a motor vehicle or a motor vehicle of any specified of any specified class of description

ECGC

Export Credit Guarantee Corporation of India Limited (ECGC) commenced business in July 1957 and provide export credit insurance support to India Exporters. It is owned by Government of India and is the fifth largest credit insurer in the world in terms of coverage of national exports

Emergency

Emergency means a serious medical condition or symptom resulting from injury or sickness,which arises suddenly and requires immediate care and treatment to avoid jeopardy to the life or serious damage to the health of the insured

Endorsement

Endorsement means written evidence of change to Your Policy including but not limited to increase or decrease in the period,extent and nature of the cover agreed by insurance company in writing

Engineering Insurance

Engineering Insurance covers several risk for contractors in civil engineering projects, erection of electrical plants, breakdown of machinery and its consequential loss of profits etc.

Family Floater

Family Floater means a policy described as such in the schedule whereunder Insured and his dependents named in the Schedule are insured under the policy.

Fidelity Guarantee Insurance

Fidelity Guarantee Insurance covers risks related to dishonesty fraud and embezzlement by employees etc. and protects employers from loss of cash and securities

Fire Insurance

Fire Insurance policies provide cover for financial losses due to damage to property arising out of fire,explosions etc.

Floater Sum Insured

Floater Sum Insured means the Sum Insured as specified in the schedule of the policy is available for any one or all members of his family who have been mentioned as Insured Persons in the schedule, for one or more claims during the period of insurance

Free look period

Free look period gives the client the option to review the terms and conditions of the policy for a few days after the date of receipt of the policy document. In case the policyholder disagrees with the terms and conditions stated in the policy, he has the option to return the policy. The premium paid by the policyholder is also returned after deducting expenses

Commerical Public Carrying Vehicle

Commerical Public carrying vehicle defines a "Public Carrier" as an owner of transport vehicle who transports or undertakes to transport goods or any class of goods,for another person at any time and in any public place for hire and reward,whether in pursuance of the terms of contract or agreement or otherwise

Golf Hole-in-one

It is hereby agreed that the insurer shall reimburse expenses incurred in celebration of achieving a hole-in-one by the insured during the trip, anywhere in the world excluding India, in a United States Golfers' Association (USGA) recognized golf course, subject to maximum the limit shown in the Schedule against this cover.

Gross Vehicle Weight (GVW)

Gross Vehicle Weight means in respect of any vehicle, the total weight of the vehicle and load certified and registered by Registering Authority as permissible for the vehicle.

Hijack Cover

The insurance company will pay the sum specified in the schedule to the subject to the maximum limit, if the insured is detained by hijackers following hi jacking of any aircraft in the insured is travelling for each 24 hours

Home Burglary Insurance

The policy will indemnify the insured for claims made in respect of loss of or damage to contents of the insured's home in India (located at the address mentioned in the policy schedule) caused by actual or attempted Burglary and/or Robbery during the policy period.

Hospital/Nursing Home

Hospital/Nursing Home means any institution in India established for indoor care and treatment of sickness and injuries and which either: has been registered as a Hospital or Nursing Home with the local authorities and is under the supervision of a registered and qualified Medical Practitioner

Hospitalisation

Hospitalisation means treatment of Insured Person as inpatient in the Hospital/Nursing Home for minimum period of 24 hours. However for specific treatment i.e Dialysis,Chemotherapy,Radiotherapy,Eye Surgery undertaken by Insured Person in the Hospital/Nursing Home,the above limit of 24 hours will not be mandatory.

House Breaking

House breaking means an act involving the unauthorized entry to or exit from Your Home or attempted threat by unexpected, forcible, visible and violent means, with the intent to commit an act of Theft.

Identification or ID Card

Identification or ID card means the card issued to the Insured by the Insurance Company

Immediate Annuity

Immediate annuity is type of contract, the annuitant makes a lump sum payment to the insurance company and the insurance company starts paying annuities soon after the policy commences.

In-Patient

An Insured Person who is admitted to Hospital and stays for a minimum period of 24 hours, for the sole purpose of receiving treatment

Inclement Weather

Inclement Weather means any severe,catastrophic weather conditions, which delays the scheduled arrival or departure of a common carrier.

Injury

Injury means accidental bodily injury solely and directly caused by external, violent and visible cause. This definition includes accidental bodily injury resulting from exposure to element of the cause

Insurance Act, 1938

The Act applies to the General Insurance Corporation of India and the four Subsidiary Companies subject to exceptions, restrictions and limitations as 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.

Insured

Insured refers to the policyholder or the person protected in case of a loss or claim.

Insured Declared Value (IDV)

The Insured's Declared Value (IDV) of the vehicle will be deemed to be the 'SUM INSURED' for the purpose of this tariff and it will be fixed at the commencement of each policy period for each insured vehicle

Insurer

Insurer refers to the insurance company

Intermediaries

people or organisations who sell insurance for insurers bring together those who offer insurance protection and those who want to buy it

IRDA

IRDA (Insurance Regulatory and Development Authority) IRDA is an autonomous body set up under the IRDA Act, 1999.IRDA was formed to protect the interests of policyholders, to regulate, promote and ensure orderly growth of the insurance industry.

Liability Insurance

Liability Insurance provides indemnity for injuries to third parties or their property

Liability Only Policy

This covers Third Party Liability for bodily injury and / or death and Property Damage. Personal Accident for Owner Driver is also included.

Light Motor Vehicle (LMV)

Light Motor Vehicle means a transport vehicle or omnibus, the gross vehicle weight of either of which or a motor car or a tractor or road roller, the unladen weight of any of which does not exceed 7500 kgs.

Limit of Indemnity

Limit of Indemnity represents maximum liability to make payment for each and every claim per person and collectively for all persons mentioned in the Schedule during the policy period by Insurance Company

Loss of Passport

In the event of the insured's loss of passport, the company will pay expenses necessarily incurred by insured in in obtaining a duplicate or new passport

Marine Cargo Insurance

Marine Cargo Insurance provides cover for goods in transit by sea, air, rail, road or by post.

Marine Hull Insurance

Marine Hull Insurance covers loss or damage to ocean going ships and other vessels such as fishing vessels, sailing vessels etc.

Market Value

Market Value means the value at which property insured could be replaced with one of the same kind, type, age and condition.

Medical Practitioner

Medical Practitioner means a person who holds a degree/diploma of a recognised institution and is registered by Medical Council of the respective State of India. The term Medical Practitioner would include Physician, Specialist and Surgeon

Motor Insurance

Motor Insurance deals with insurance of motorised vehicles on road, whether used for private comfort or public service, whether carrying passenger or goods.

Motor Vehicle

Motor Vehicle or Vehicle means any mechanically propelled vehicle adapted for use upon road, whether power of propulsion is transmitted thereto from an external or internal source and includes a chassis to which a body had not been attached and a trailer, but does not include a vehicle running upon fixed rails or a vehicle of a special type adapted for use only in factory or in any other enclosed premises or vehicles having less than four wheels fitted with enginee capacity not exceeding 25 cc

Network Hospitals

Network Hospitals means all Hospitals with whom insurance company or the appointed TPA have special arrangement for the provision of medical services

Nomination

Nomination is a right conferred on the insurance policyholder to appoint a person to receive the policy monies in the event of the death of the policy holder

Ombudsman

The Insurance Ombudsman scheme was created by Government of India for individual policyholders to have their complaints settled out of the courts system in a cost-effective, efficient and impartial way

Outpatient Treatment

Outpatient Treatment means consultation,diagnosis, or medical treatment taken by any Insured Person at an Outpatient department of a Hospital,clinic or associated facility,provided that he is not Hospitalised

Overseas Medical Insurance

Overseas Medical Insurance covers medical expenses incurred while travelling abroad.

Package Policy

This covers loss or damage to the vehicle insured (Own Damage) in addition Liability only Policy

Period of Insurance

Period of Insurance means the period shown in the Schedule, for which you have paid and Insurance company have received and accepted your premium.

Personal Accident Insurance

Personal Accident policies cover death or disablement arising out of accidents of any kind (caused by external, violent and visible means)

Policy

Policy means the policy wordings, the schedule and any applicable endorsement or memoranda. The Policy contains details of the extent of cover available to Insured Person(s), what is excluded from the cover and the conditions on which the Policy is issued

Pre-Exisitng Condition

Pre-Existing Conditions means the chronic illnesses or ailments existing or know to exist at the commencement of the Period of Insurance

Premium

Premium refers to amount paid to purchase an insurance policy

Private Car

Private Car type vehicles used for social,domestic and pleasure purposes and also for professional purposes (excluding carriage of goods other than samples) of the insured

Private Insurer

These can be either 100% Indian Owned Companies or in joint venture with a foreign insurer; the foreign partner's stake restricted to maximum 26%

Proposal Form

Proposal Form as specified in Section 5 of the INDIA MOTOR TARIFF is required to be submitted by the insured to the insurer before the commencement of cover and at renewal in case of material alteration.

PSU- Public Sector Insurers

They are 100% owned by the Government of India and work under the Department of Banking and Insuranec, Ministry of Finance

Public Place

Public Place means a road street, way or other place whether thoroughfare or not, to which the public have a right of access, and includes any place or standat which passengers are picked up or set down by a stage carriage

Qualified Nurse

Qualified Nurse means a person who holds a certificate of recognised Nursing Council and is employed on recommendation of the attending Medical Practitioner

Reinsurance Company

General Insurance Corporation of India (brand name- GIC Re) is Indian Reinsurer with the aim of optimising retention of reinsurance business within the country and developing adequate reinsurance capacity. GIC manages the Indian Insurance Pools on behalf of the Industry.

Single Trip

Single Trip shall mean one Trip, the details of which are specified in the Schedule to this Policy.

Sound Natural Teeth

Sound Natural Teeth means natural teeth that are either unaltered or are fully restored to their normal function and are Disease-free, have no decay and are not more susceptible to injury than unaltered natural teeth

Surgical Procedure

Surgical Procedure means an operative procedure for the correction of deformities and defects, repair of injuries, cure of diseases, relief of suffering and prolongation of life

Trailers

Any Truck,cart,carriage or other vehicles without means of self propulsion including agricultural implements drawn or hauled by self propelled vehicle

Trip Curtailment

Trip Curtailment means cutting your trip by early return to India due to unavoidable circumstances such as 1. Sudden death or serious injury or sudden sickness of your spouse or child residing with you in India and who is not travelling with you on the insured journey 2. the hijack of an aircraft in which you are travelling as a fare-paying passenger

Tuition Fee

In case of serious medical emergency of the insured or serious injury requiring hospitalisation, due to which insured unable to continue the school semester, the insurance company shall reimburse the tuition fee paid in advance for the current semester, subject to maximum limit in the policy schedule.

Two Wheelers

Motorised two wheelers (with or without side car) used for social,domestic and pleasure purposes and for professional purposes (excluding carriage of goods other than samples) of the insured

ULIP

A Unit linked insurance plan (ULIP) is an insurance plan which is a combination of insurance protection and investment

Workmen's Compensation Insurance

Workmen's Compensation Insurance covers the compensation that is to be paid by the employer to the employee for death or disablement or injuries as per the Workmen's Compensation Act 1926, for accidents while at work