KALYAN CITY LIFE

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Kalyan City is a fast emerging residential township in the Thane district of Maharashtra state, India. It is a central suburban town and resides 54 kms north-east of Mumbai. This blog regularly shares quality academic materials. Here we also document our unique experiences and vivid memories of life. Read our lucid informative articles to excel your understanding, knowledge and success.

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Articles published on Kalyan City Life blog are inspired from our work experience, field research, study of various good books and papers, seminars and consultations from subject scholars. Our unique collection of useful study notes is an outcome of a team effort and hard work of Gaurav Akrani, Prof. Mudit Katyani and Manoj Patil.

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Insurance Terms, Glossary and Dictionary - Terms of Insurance



square 1. Insurer


The company which issues insurance policy is called insurer. Insurance company is also called assurer or underwriter. Insurer agrees to pay compensation on the happening of uncertain and unfortunate event.

insurance terms

Image Credits © Alan Cleaver


square 2. Insured


The person who is protected against uncertain losses and who is paid a compensation by the insurance company is called insured or assured. He is a person in whose favour insurance policy in issued. He is also called a policyholder.


square 3. Proposal


Proposal is a written request made by the proposer to the insurance company for insurance cover. Insurance companies supply printed proposal forms free of charge to the interested parties.


square 4. Premium


Premium is a periodical payment which the insured has to make to the insurer in return for the insurer's guarantee to compensate his loss. It is a financial consideration payable to the insurer.


square 5. Policy


Policy is a written document which contains the contract of insurance. It contains terms and conditions of the insurance contract. It is a sealed document issued by the insurance company (i.e insurer). A policyholder (i.e insured) has to keep it safely for claiming compensation, if necessary.


square 6. Subject matter of insurance


It is the subject against which the insurance policy is taken. In life insurance, life of the assured is the subject matter. In fire insurance, goods / property / building, etc., is the subject matter. In marine insurance, cargo or ship is the subject matter of insurance.


square 7. Claim


Claim is a demand made by the insured for compensating the loss to the subject matter of insurance. Insurance companies give claim forms to policyholders for the giving claim. Claim is made on the happening of the event. For example, fire, flood, theft, death, etc.


square 8. Reinsurance


Reinsurance is a system by which the original insurer enters into a contract with another insurer for sharing a part or all the risks taken by him. It is done when the amount of risk covered is very high. The main objective is to reduce the risk of large contracts.


square 9. Double Insurance


Double Insurance takes place when the insured insures his property or goods with two insurance companies. In such a case, each insurer will pay the proportionate amount in case of loss. If one insurer agrees to pay the full compensation, then he can claim the proportionate amount from the other insurer. The main objective is to ensure additional safety.


square 10. Actuary


Actuary is a professional person appointed by an insurance company to give advice about premium rates, insurance product development, investments, maintenance of accounts, etc.




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