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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