Categories
- Glossary
Suggest a new Definition
Proposed definitions will be considered for inclusion in the Economictimes.com
- PREV DEFINITION
Risk Assessment
Risk assessment, also called underwriting, is the methodology used by insurers for evaluating and assessing the risks associated with an insurance policy.
Read More
- NEXT DEFINITION
Subrogation
Subrogation is a right with the insurance company to sue a person or entity responsible for any damage or disability suffered by the insured.
Read More
Definition: Under a settlement option, the maturity amount entitled to a life insurance policyholder is paid in structured periodic installments (up to a certain stipulated period of time post maturity) instead of a 'lump-sum' payout. Such a payout needs to be intimated to the insurer in advance by the insured. The primary objective of settlement option is to generate regular streams of income for the insured.
Description: Under settlement option, the insured receives a regular flow of income from the insurer post the maturity of the policy. An annuity or a pension is type of settlement option where the insured gets regular stream of income after the completion of the maturity period when the insured reaches the vesting age.
Read More News on
- INSURANCELIFE INSURANCEPENSIONANNUITY
- INSURANCE POLICYPREMIUMINSURERCLAIM
- INSURANCE COMPANYMATURITYINSUREDSETTLEMENT OPTION
- PREV DEFINITION
Risk Assessment
Risk assessment, also called underwriting, is the methodology used by insurers for evaluating and assessing the risks associated with an insurance policy.
Read More
- NEXT DEFINITION
Subrogation
Subrogation is a right with the insurance company to sue a person or entity responsible for any damage or disability suffered by the insured.
Read More
Related Definitions
- 3rd Party Insurance: Motor third-party insurance or third-party liability cover, which is sometimes also referred to as the 'act only' cover, is a statutory requirement under the Motor Vehicles Act.It is referred to as a 'third-party' cover since the beneficiary of the policy is someone other than the two parties involved in the contract (the car owner and the insurance company). The policy does not provide any Absolute AssignmentAn absolute assignment is the act of complete transfer of the ownership (all rights, benefits and liabilities) of the policy completely to other party without any terms and condition.Description: Absolute assignment shifts the ownership of the insurance policy.For instance, a policy owner X wants to gift his life insurance policy to another person named Y. Hence X is doing absolute assignment.Accidental Death Benefit And DismembermentAccidental death benefit and dismemberment is an additional benefit paid to the policyholder in the event of his death due to an accident. Dismemberment benefit is paid if the insured dies or loses his limbs or sight in the accident.Description: In an event of death, the insured person gets the additional amount mentioned under these benefits in the insurance policy. These are the supplementary Actual Cash ValueA valuation of the damaged property, i.e. its monetary worth at market value immediately preceding the occurrence of the loss, is called actual cash value of the property. It gives the estimate of the cost of replacement or repair of the damaged asset.Description: To ascertain the exact extent of loss, the insurance company undertakes an evaluation of the property before and after the loss occur
- Actuarial ScienceActuarial Science is a discipline that deals with assessing the risks in insurance and finance field using various mathematical and statistical method.Description: The professionals who carry out these tasks of ascertaining, analyzing and providing solutions of future uncertainties having financial risks are the actuaries. Mathematics of probability and statistics are the major tools they use toActuariesA person with expertise in the fields of economics, statistics and mathematics, who helps in risk assessment and estimation of premiums etc for an insurance business, is called an actuary.Description: Insurance business requires advanced statistical and analytical skills for evaluation of risks and returns associated with each proposal. Insurance companies employ these experts from the field of Adverse SelectionAdverse selection is a phenomenon wherein the insurer is confronted with the probability of loss due to risk not factored in at the time of sale. This occurs in the event of an asymmetrical flow of information between the insurer and the insured.Description: Adverse selection occurs when the insured deliberately hides certain pertinent information from the insurer. The information may be of critAgentAn agent is a person who represents an insurance firm and sells insurance policies on its behalf.Description: Generally, there are two types of such agents who reach the prospective parties that may be interested in buying insurance. These are independent agents and captive or exclusive agents.Independent agents may represent many insurance firms and receive commission for their services a
- Annualized PremiumThe total amount of premium paid annually is called the annualized premium.Description: Any insurance policy comes up with many premium payment options. Premium can be paid monthly, quarterly, semi annually and annually.For instance, if the monthly premium is Rs 2000, then the annualised premium will be 2000*12 = Rs 24000Also See: Insurance, Concealment, BancassuranceAnnualized Premium EquivalentAnnualized premium equivalent (APE) is a common measure of ascertaining the business sales in the life insurance industry. It is the sum of the regular annualized premium from the new business plus 10% of the first single premium in a given period.Description: APE is computed as:APE = Annualized regular premium + 10 % of single premium (Including top-up premium). Where annualized regular pre
Related News
Sebi disposes of proceedings against NSE in 2021 trading glitch issueSebi has closed its investigation into the National Stock Exchange (NSE) and NSE Clearing Ltd after they reached a settlement agreement regarding a trading glitch in 2021- Dhan Vridhhi: LIC launches new non-linked period planLIC said Dhan Vriddhi is a non-linked, non-participating, individual, savings, single premium life plan, offering a combination of protection and savings.
- LIC Bima Ratna life insurance plan: 9 things to knowThis plan provides financial assistance to the policyholder's family in the event of the policyholder's untimely death during the policy term, as well as periodic payments on the policyholder's survival for predetermined periods of time to meet a variety of financial needs.
- How to build a brand using social mediaUse social media strategically and it can be a great brand equity creator. Be indifferent to it and it has the potential to dilute a lot of the equity you may have created.
- 9 tips on how to maintain a good credit scoreThe first step in maintaining a good credit score is to understand more about it. It is absolutely vital to figure out what constitutes a credit score and then ensure there are no slippages on those parameters.
- 9 tips on how to maintain a good credit scoreThe first step in maintaining a good credit score is to understand more about it. It is absolutely vital to figure out what constitutes a credit score and then ensure there are no slippages on those parameters.
- Can physics explain Rajinikanth's stunts?Dr Metin Tolan, who studies action in James Bond movies, breaks down eyepopping scenes from Indian films.
- New Vedanta chief in Goa starts discussions with workers, contractors to slash costsThe business, which made a profit of more than Rs 2,000 crore in 2012 and Rs 4,000 crore a year before, has already lost three years.
- Unemployment rate now 1 per cent, says Bandaru DattatreyaDattatreya said the total workforce in the country as per 2013-14 data was around 47 crore with 39 crore being in the unorganised sector.
- SBI extends overdraft facility against FD for online customersAs an introductory offer, SBI is charging an interest rate of only 0.5 per cent more than the linked fixed deposit for its online customers.
Load More
Trending DefinitionsRBI MPC Meeting Live UpdateBudget 2024 Real EstateRailways Budget 2024Interim Budget 2024Budget 2024 New Tax RegimeIncome Tax in Budget 2024Debt fundsRepo rateMutual fundGross domestic productData miningAdvertisingProductMonopolyCryptographyDepreciation
