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The Insurance Terminology Starter Kit

By Bhavesh Mehta - Jan 6,2020
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The Insurance Terminology Starter Kit

Let’s start you off with some of the most commonly heard terminologies starting with ‘A’ related to insurance.

  • Accident

Any event which is unexpected in nature. This can be easily covered under insurance.

  • Accident Insurance

Cover against accidental risks or events. E.g. Death, Permanent Total Disablement, Permanent Partial Disablement, Temporary total disablement, etc. One can get accident insurance on Finserv MARKETS at affordable costs.

  • Accident only

An insurance policy that provides cover for accidental bodily injury. The accident only is a broad category. Various types of personal accident insurance products can be considered as part of the segment. You can get personal accident insurance on Finserv MARKETS in a hassle-free and transparent process.

  • Accident, AD&D 

Policy covering Accidental risks including Death & Disablement. An insurance company pays the stipulated amount in the event of accidents resulting in any bodily injury. The sachet accident insurance, available on Finserv MARKETS, also covers permanent total and permanent partial disability.

  • Accidental Bodily Injury

Unexpected accidental injury to a person’s body.

  • Actual Cash Value

Payment of claim amount as indemnification due to loss or damage to property. It depends upon the policy terms and conditions and is paid after deducting depreciation.

  • Actuarial Report

A report published by the qualified actuary in an insurance company. He or she takes into account the past claims experience along with mortality rates to support the pricing of the actuarial report. This forms part of the Actuarial Memorandum.

  • Actuary

A professional who analyses the chances of risk and uncertainties associated and decides the pricing for any product at the time of filing as per the insurance industry standard set by the Insurance Regulatory and Development Authority of India.

  • Adjuster

Someone designated and authorized by the insurance company to investigate claims and recommend claim settlement options based on damage estimates and insurance policy schedule.

  • Admitted Insurance Company

An insurance company licensed to do business.

  • Adverse Selection

A person with a higher risk probability.

  • Advisory Organization

Group of people from member companies whose job is to gather loss statistics and suggest the loss trends that can be foreseen.

  • Agent

A licensed individual who is authorized to sell, service, and negotiate insurance policies on behalf of the customer with the insurance companies. Insurance policies sold by agents are costlier when compared to direct plans. You can buy insurance products, including accident insurance, through the Finserv MARKETS App at cheaper rates. Besides affordability, the app provides quick claim settlement, transparent pricing and personalised offers.

  • ALAE

Allocated Loss Adjusted Estimate. This is an estimate of claims to be settled post-claim intimation.

  • All risk policy 

A policy which covers the loss or damage due to any perils, except those which are excluded in the policy and are specifically mentioned in the policy document to this end.

  • Annual statement

Annual report of the balance sheet. It determines the financial condition of the insurance company.

  • Annuitant 

Person who is the beneficiary and gets annuity payment.

  • Annuity 

A policy providing income for a specified period of time and for the duration agreed in the policy while paying the premium.

  • Arbitration

A resolution process conducted by an independent person who has no bias to either insurer or insured.

  • Authorized company 

An entity licensed to do business in a particular state or country.

When opting for a specific insurance policy, you will most definitely encounter certain obscure terms. By brushing up on your insurance terminology, you ensure that you are fully apprised of all possible terms, conditions and clauses. This will help in picking the most beneficial plan and in claiming your sum assured/insured. A clear understanding of insurance terms helps, but even without in-depth knowledge, you are guaranteed transparency at Finserv MARKETS. You can buy insurance policies through the platform without worrying about hidden costs and clauses.

Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we work towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522