Important Insurance Terms for NICL AO 2015 – 2

Hello and welcome to ExamPundit. Earlier our post on Important Insurance Terms for NICL AO 2015 had one question in common. So here is another set of Important Insurance Terms for NICL AO 2015.

  • 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

  • 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 Semiobligatory 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. – NoFault

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