1. Insurer
The fellowship which issues insurance policy is called insurer. Insurance fellowship is besides called assurer or underwriter. Insurer agrees to pay compensation on the happening of uncertain in addition to unfortunate event.
Image Credits © Alan Cleaver
2. Insured
The soul who is protected against uncertain losses in addition to who is paid a compensation yesteryear the insurance fellowship is called insured or assured. He is a soul inwards whose favour insurance policy inwards issued. He is besides called a policyholder.
3. Proposal
Proposal is a written asking made yesteryear the proposer to the insurance fellowship for insurance cover. Insurance companies provide printed proposal forms gratis of accuse to the interested parties.
4. Premium
Premium is a periodical payment which the insured has to brand to the insurer inwards render for the insurer's guarantee to compensate his loss. It is a fiscal consideration payable to the insurer.
5. Policy
Policy is a written document which contains the contract of insurance. It contains price in addition to atmospheric condition of the insurance contract. It is a sealed document issued yesteryear the insurance fellowship (i.e insurer). H5N1 policyholder (i.e insured) has to proceed it safely for claiming compensation, if necessary.
6. Subject affair of insurance
It is the champaign of report against which the insurance policy is taken. In life insurance, life of the assured is the champaign of report matter. In burn downwardly insurance, goods / belongings / building, etc., is the champaign of report matter. In marine insurance, cargo or transportation is the champaign of report affair of insurance.
7. Claim
Claim is a need made yesteryear the insured for compensating the loss to the champaign of report affair of insurance. Insurance companies laissez passer on claim forms to policyholders for the giving claim. Claim is made on the happening of the event. For example, fire, flood, theft, death, etc.
8. Reinsurance
Reinsurance is a organization yesteryear which the master insurer enters into a contract alongside about other insurer for sharing a business office or all the risks taken yesteryear him. It is done when the sum of gamble covered is real high. The principal objective is to trim down the gamble of large contracts.
9. Double Insurance
Double Insurance takes house when the insured insures his belongings or goods alongside 2 insurance companies. In such a case, each insurer volition pay the proportionate sum inwards instance of loss. If 1 insurer agrees to pay the total compensation, in addition to therefore he tin claim the proportionate sum from the other insurer. The principal objective is to ensure additional safety.
10. Actuary
Actuary is a professional person soul appointed yesteryear an insurance fellowship to laissez passer on advice most premium rates, insurance production development, investments, maintenance of accounts, etc.
