Dear Aspirants,
You may have heard numerous times that terms related to the Insurance Sector are important for you in order to crack the General Awareness Section in the examination. So, some of the most important terms related to the Insurance Sector are listed below:
Endowment Policy: The insured is required to pay an annual amount in order to avail the benefits of the policy. This premium amount is calculated on the basis of the applicant’s age at the time of taking the insurance. The amount insured is paid after the maturity of the policy term at the death of the policy taker, whichever is earlier.
Annuity: An annuity is a contract between you and an insurance company in which you make a lump sum payment or series of payments and in return obtain regular disbursements beginning either immediately or at some point in the future.The goal of annuities is to provide a steady stream of income during retirement.
Third-party Insurance: It is essentially a form of liability insurance purchased by an insured (first party) from an insurer (second party) for protection against the claims of another (third party). The first party is responsible for their damages or losses, regardless of the cause of those damages.
There are two types of automobile third-party liability coverage. First, bodily injury liability covers costs resulting from injuries to a person. These injuries costs could include expenses like hospital care, lost wages, and pain and suffering due to the accident. Secondly, property damage liability covers costs resulting from damages to or loss of property. Examples of property damage include the payment to replace landscaping and mailboxes, as well as compensation for loss of use of a structure.
PLPD insurance, or Public Liability and Property Damage insurance: It is basically a liability insurance for bodily injury and property damage. This is the coverage that pays in case when you meet with an accident and need to pay for the injuries and property damage the other parties incurred as a result of the accident.
PLPD insurance is third party insurance – it won’t pay for any damages on your car or for injuries you incur.
No-fault or Full Coverage Auto Insurance: It also covers first party claims – damage to your car and losses due to any injuries to you. No-fault insurance allows you to claim with your insurance company without the need to prove that the other party was at fault.
Full coverage insurance will also pay for damage to your car, even if you are the one at fault. Full coverage insurance basically includes collision insurance and comprehensive insurance. This will pay for damage due to collisions, as well as other covered causes such as theft, fire or vandalism.
Authorized Control Level Risk Based Capital :It is a theoretical amount of capital plus surplus an insurance company should maintain.
BCEGS; Building Code Effectiveness Grading Schedule is a classification system for assessment of building codes per geographic region with special emphasis on mitigation of losses from natural disasters.
Boiler & Machinery or Equipment Breakdown & Machinery : It is a coverage for the failure of boilers, machinery and other electrical equipment. Benefits include (i) property of the insured, which has been directly damaged by the accident; (ii) costs of temporary repairs and expediting expenses; and (iii) liability for damage to the property of others. Coverage also includes inspection of the equipment.
Capital and Surplus Requirement: It is a statutory requirement ordering companies to maintain their capital and surplus at an amount equal to or in excess of a specified amount to help assure the solvency of the company by providing a financial cushion against expected loss or misjudgments and generally measured as a company’s admitted assets minus its liabilities, determined on a statutory accounting basis.
Capitation Arrangement – It is a compensation plan used in connection with some managed care contracts where a physician or other medical provider is paid a flat amount, usually on a monthly basis, for each subscriber who has elected to use that physician or medical provider. Capitated payments are sometimes expressed in terms of a “per member/per month” payment. The capitated provider is generally responsible, under the conditions of the contract, for delivering or arranging for the delivery of all contracted health services required by the covered person.
There are many such terms which are important for the examination.So, get hold of them as soon as possible!
All the best!
Avision
Howrah, Liluah & Kolkata
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