INSURANCE

The IDV insured declared value is a key concept in the insurance industry, specifically for motor vehicles. It refers to the declared value of the insured vehicle at the time of insurance purchase. Here’s a breakdown of the terms: IDV (Insured Declared Value): This is the value you declare for your vehicle when you initially […]

Prepaid Insurance Prepaid insurance is a type of insurance coverage where premiums are paid in advance for a specific period, usually one year. The insurer collects these premiums in advance and holds them in a separate account. When the insured event occurs, the insurer uses the prepaid premiums to cover the claim. Advantages: Convenience: Prepaid […]

The Insurance Regulatory and Development Authority (IRDA) is a statutory body established in India in 1999 under the Insurance Regulatory and Development Authority Act, 1999. It is the primary regulator of the Indian insurance industry. Key Functions: Regulation: Setting and enforcing regulations for the insurance industry, including: Minimum solvency norms for insurers Standards for insurance […]

Definition: An insurance deductible is the amount you have to pay out of pocket before your insurance company starts paying for covered damages or losses. It’s like a buffer zone between you and your insurer. Examples: Car Insurance: You have a $500 deductible for collision damage. If you get into a car accident and the […]

Underwriting Underwriting is the process of evaluating the risks associated with a loan or other financial transaction and determining whether the borrower is eligible for financing. It involves gathering and analyzing various factors, including the borrower’s credit history, income, assets, and liabilities. Key Steps in Underwriting: 1. Application Review:– Review the borrower’s loan application and […]

Preferred Provider Organization (PPO) A Preferred Provider Organization (PPO) is a health insurance plan that offers a network of preferred healthcare providers at lower costs than traditional fee-for-service plans. Key Features of PPO Plans: Network of Preferred Providers: PPO plans offer a network of healthcare providers who have agreed to offer services at lower prices. […]

A financial quota share is a percentage of a company’s voting stock that is reserved for a particular shareholder or group of shareholders. It is a type of long-term security agreement that grants the holder the right to vote at shareholder meetings and to receive dividends. Key points: Financial quota share: A percentage of a […]

The “insurance grace period” refers to a specific timeframe in which you can purchase insurance coverage without penalty or late fees. It’s offered by various insurance companies as a way to encourage new customers and ease the transition process. This period typically lasts for a few days or weeks, although the exact duration varies depending […]

Conditional Binding Receipt A conditional binding receipt is a contract document that acknowledges receipt of a binding offer and indicates that the offeror is conditionally bound to accept the offer if certain conditions are met. Key Elements of a Conditional Binding Receipt: Acknowledgement of Offer: The receipt acknowledges the offer made by the offeror and […]

Term Plan A term plan is a financial plan that covers a specific period, typically one to five years. It outlines a person’s financial goals and the steps necessary to achieve them. Components of a Term Plan: 1. Financial Goals:– Specific objectives to be achieved within the defined time frame.- Examples include saving for a […]