Insurance Domain Terminology

When it comes to Insurance Domain Terminology, there are various terms which are being used in the insurance industry. Understanding each and every term is very important before applying for any type of insurance in any insurance company or a group.  Here are the few terms in the insurance industry that might help you understand how things work within the industry:

Insurance: Insurance refers to a form or a contract which allows an insurance company to manage the risks of the client and provide them with compensation in terms of loss, damage or illness.

Insurer: The term Insurer refers to the company or an organisation that is offering the insurance; sells the insurance.

Insured person: The term insured person refers to the client of an insurance company who is paying the premium for the insurance coverage.

Policy: The Term policy refers to the contract between the insurer and the insured person. This contract includes all the terms and condition according to which the amount for compensation is determined and paid to the client.

Premium: Premium refers to the price of the insurance policy which the client is paying.

Claim: This term refers to the insurance amount which is provided to the beneficiary (insured person) according to the insurance policy as a form of insurance benefit.

Intermediaries: The term Intermediaries refers to the person who plays the role of a broker or an agent while applying for an insurance policy.

Co-Insurance: Co-Insurance refers to the payment method where the insured person has to pay a certain amount of money and the rest would be paid by the Insurer or by the Insurance Company for insurance deductions.

Deductible/Deductions: The term Deductible refers to the amount of money the insured person has to pay so that he or she is able to avail the benefits offered by the Insurer or the Insurance Company.

Commission: This term refers to the amount of money which is paid to the agent or broker who helped in selling the insurance policy of the Insurance Company.

Grace Period: It refers to the timeline where the insurance policy is still being incorporated post the due date of the premium.

In Force: This term refers to the insurance policy where the premium is fully paid by the insured person.

Lapse: The term lapse refers to the terminations of the insurance policy before the grace period; the policy might get terminated due to late or not paying the premium on time.