Who is an Insured?

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Who is an Insured? Insured is a generic term that refers to any person or entity legally entitled to receive the benefits of an insurance policy, typically claim payments. Generally insurers make payments to insureds after they experience a covered loss, damage, or an injury that qualifies for payment under the policy's terms. The main difference between an insured and a named insured is that: an insured party is any person or entity that is legally qualified to receive insurance payments after a loss occurs, while a named insured is a more specific term referring to individuals or companies listed on a policy’s declaration page. The relationship between a insured and insurer is that in the contract of insurance, the insurance company makes a promise to compensate for the losses incurred by the insured on the happening of a contingency. Contingency refers to the event that causes the loss, which often includes the policyholder's death or the destruction of a property. In return, the insured has to pay a premium amount for maintaining the promise made by the insurer. Some of the duties of the insured include but not limited to the following: -Disclose material information. -Avoid concealment and misrepresentation. -Report loss or damage to the authorities. -Provide notice of claim to the insurer. -Prepare an inventory of the damaged or stolen property. -Provide proof of loss to the insurer. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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