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 as well as unfortunate event.
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2. Insured
The individual who is protected against uncertain losses as well as who is paid a compensation yesteryear the insurance fellowship is called insured or assured. He is a individual inward whose favour insurance policy inward 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 furnish printed proposal forms costless of accuse to the interested parties.
4. Premium
Premium is a periodical payment which the insured has to brand to the insurer inward 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 as well as weather of the insurance contract. It is a sealed document issued yesteryear the insurance fellowship (i.e insurer). Influenza A virus subtype H5N1 policyholder (i.e insured) has to give-up the ghost along it safely for claiming compensation, if necessary.
6. Subject thing of insurance
It is the discipline against which the insurance policy is taken. In life insurance, life of the assured is the discipline matter. In burn insurance, goods / holding / building, etc., is the discipline matter. In marine insurance, cargo or shipping is the discipline thing of insurance.
7. Claim
Claim is a need made yesteryear the insured for compensating the loss to the discipline thing of insurance. Insurance companies hand 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 original insurer enters into a contract amongst around other insurer for sharing a role or all the risks taken yesteryear him. It is done when the sum of opportunity covered is really high. The master copy objective is to trim the opportunity of large contracts.
9. Double Insurance
Double Insurance takes house when the insured insures his holding or goods amongst 2 insurance companies. In such a case, each insurer volition pay the proportionate sum inward instance of loss. If i insurer agrees to pay the total compensation, thence he tin privy claim the proportionate sum from the other insurer. The master copy objective is to ensure additional safety.
10. Actuary
Actuary is a professional person individual appointed yesteryear an insurance fellowship to hand advice nearly premium rates, insurance production development, investments, maintenance of accounts, etc.
