Important Insurance Terms for NICL AO 2015 - 2

• A discount in the Own Damage premium payable when renewing your policy after a claim-free year. It is an incentive for driving carefully and avoiding accidents.  - No Claim Bonus

• A temporary document of Insurance coverage establishing proof of Insurance with which you can register your vehicle. A cover note is valid for 60 days from the date of its issuance and is replaced by an Insurance policy.  - Cover Note

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

• Service providers of Insurance Company responsible for coordinating all aspects of claims. They provide cashless facility to the client undergoing treatment during Hospitalisation. - Third Party Administrator

• The motor insurance do not covers you and your motor vehicle. It covers your legal liability for the damage you caused to a third party only - injury, death, and/or property damage caused to a third party in the event of an accident caused by or arising out of the use of the vehicle. - Third Party Insurance

• The amount payable on the deferred date under Jeevan Dhara Life of Life Insurance Corporation of India. An annutiy of 1% of the GIVE is payable per month after the deferment period. And the entire GIVE is payable on death after deferment period. - Gross Insurance Value Element (GIVE)

• A person who holds something in trust for another. - Fiduciary

• Liability for damages even though fault or negligence cannot be proven. - Absolute Liability

• Absolute ownership exits where the interest or explicit right of possession of the insured is so free from limitations, qualifications or restrictions that it cannot be taken from him without his consent. - Absolute Ownership

• Any accidental act which could not have been prevented by any amount of human care and fore thought. - Act of God
• The maximum amount that may be collected for any disability or period of disability under the policy. - Aggregate Indemnity
• A type of reinsurance in which the reinsurer can accept or reject any risk presented by an insurance company seeking reinsurance. - Facultative Reinsurance
• A life insurance policy taken by a person on the life of another person who is or was his employee/connected to his business in any manner whatsoever. - Keyman Insurance Policy
• Risk depends on the need for insurance, state of health, personal habits standard of living and income of insured peson. Moral hazard is the risk factors that affects the decesion of the insurance company to accept the risk. - Moral Hazard

• If the insurance policy is taken from more than one underwriter where period of insurance, subject matter of insurance and sum insured are same, then this is called double insurance. - Double Insurance
• A reinsurance contact under which the ceding company may cede exposures or risks of a defined class that the reinsurer must accept if ceded. - Facultative Obligatory Treaty (Also Semi-obligatory Treaty)
• A type of insurance mechanism whereby the right to sue another party for damages caused by negligence is limited and, in exchange, expanded first party benefits are offered. Mainly used in Vehicles insurance Policy. - No-Fault

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