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Specified Disease Coverage It is designed to pay benefits ONLY when an initial diagnosis occurs as a result of a covered critical illness. Coverage is only for the Critical Illnesses specified. Specified Disease coverage is not provided for other diseases, accidents or disabilities. Coverage that provides primarily pre-determined benefits for expenses of the care of cancer heart attack, stroke, organ transplant, renal failure, paralysis and/or other specified diseases. Specified Disease insurance provides a cash benefit when a covered person is diagnosed with acovered specified disease or event after coverage is in effect. Specified disease policies will not provide coverage for any disease or condition that was diagnosed prior to purchase of the specified disease policy and is not as substitute for your comprehensive coverage. The benefit of such coverage depends on the chance of getting a specific disease or diseases covered by insurance policy. An insurer under this policy w...

Child Protection Rider Also referred to as child insurance riders or child term riders allows you to add a child to your life insurance policy. This rider will provide life insurance coverage for the child, stepchild or legally adopted children of the Life Insured. Under this rider, you typically pay a flat rate fee regardless of the number of children you wish to insure. Generally, there is no underwriting required to qualify. This added coverage serves as a safety net for you so you can focus on your family instead of worrying about paying funeral expenses. If the worst happens, a child rider pays out a small death benefit if a covered child passes away. Child riders are added onto a parent's life insurance policy, typically at the time of purchase. Coverage is typically available for children 15 days of age to 18-25 years of age, depending on the carrier. Most riders will cover the child until they reach the “age of maturity” which is often age 25 or until marriage, which...

Written Premium Written premium is the amount of money that a person has to pay in order to be covered by an insurer. People pay a premium amount for getting themselves protected from any loss. It is an accounting term in the insurance industry used to describe the total amount that customers are required to pay for insurance coverage on policies issued by a company during a specific period of time. Written premiums are the principal source of an insurance or reinsurance company's revenues. Usually appear at the top of a company's income statement. Written premiums stand in contrast to earned premiums, which is what an insurance company actually books as earnings. Written premiums are the principal source of an insurance company's revenues and appear on the top line of the income statement. written premium is calculated by taking the number of sales that an insurance firm makes in exchange for the premium. For example, if a company gets 100 new customers which will ...

Manufacturers Output Policies (MOP) or Commercial Output Policy (COP) Is a broad all risks policy that provides a combination of commercial property and commercial inland marine coverages manufacturers and many other businesses need. . Its purpose is to ensure that a company's product is insured both during production and when in transit. This policy provides broad form coverage of personal property of an insured manufacturer including raw material, goods in process, finished goods and goods shipped to customers. MOP/COP cover combines two or more coverages like commercial property and commercial general liability, business crime, equipment breakdown, inland marine, and commercial auto liability. They are flexible enough to cater to most company needs and are often priced using a deficiency point rating system. It is flexible enough to provide coverage to most large commercial operations. It also offers limits that are much higher than what is generally offered by other types o...

Legal Expense Insurance (LEI) Legal protection insurance, also known as legal expenses insurance or simply legal insurance, is a particular class of insurance which facilitates access to law and justice by providing legal advice and covering legal costs of a dispute, regardless of whether the case is brought by or against the policyholder. There are two types of LEI policies before and after the event, with the latter being more expensive as it allows for coverage after the lawsuit has started. 1- Before The Event (BTE) covers expenses arising in the future. This option provides coverage, like a standard insurance policy, with the insured paying premiums based on its risk profile. 2- After the Event (ATE) policies handle lawsuits after the action has begun. This coverage is more expensive because proceedings are underway and expenses are inevitable. Typically LEI provide cover for common issues such as; -Unfaire dismissal, discrimination at work. -Injury from an accident that ...

Personal Auto Policy insurance on your personal vehicle the coverage is designed to insure private passenger automobiles and certain types of trucks owned by an individual or husband and wife. The Personal Auto Policy provides protection against legal liability, injury to the insured or members of the insured’s family, and damage to or loss of the auto itself. A personal auto policy is insurance on your personal vehicle. It may include liability, medical payment coverage, comprehensive, or collision coverage, depending on your policy. A vehicle used as a public or livery conveyance is not eligible for a Personal Auto Policy. Also vehicles used to carry goods for hire cannot be insured under a Personal Auto Policy. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

Social Insurance Social insurance is a concept where the government intervenes in the insurance market to ensure that a group of individuals are insured or protected against the risk of any emergencies that lead to financial problems. Examples of social insurance include: Social Security, Unemployment Insurance, workers compensation or workman's compensation. Social insurance is considered to be a type of social security, and in fact the two terms are sometimes used interchangeably. According to ILO, only 27% of the world’s population enjoys access to comprehensive social security systems, whereas 73% is covered only partially or not at all. The first compulsory social insurance programs on a national scale were established in Germany under Chancellor Otto von Bismarck: health insurance in 1883, workmen’s compensation in 1884, and old-age and invalidity pensions in 1889. Today is a universally accepted and adopted by nations. Social insurance provides protection against cer...

Car Insurance Fronting Fronting is a type of car insurance fraud where a more experienced driver claims to be the main driver of a car, when in fact they're not. They are added as a named driver to a policy (usually their parents') when they are actually not the main driver or owner of the car. The practice of fronting in insurance is fraudulent and illegal and carry a criminal convictions. The main aim of the client is to reduce the premium. For example in an tempt to cut the price of expensive car insurance for children, a parent declares his/her self as the main driver since policies are more expensive for younger motorists. This should not be mistaken to fronting business relationship between an Insurance company and a reinsurance company; in this case a fronting policy is a risk management mechanism in which an insurer underwrites a policy to cover a specific risk or a set of risks, then cedes the risk(s) to a reinsurer. Fronting will most likely be discovered when a ...

Internet Liability Insurance Network Security and Privacy Liability (also known as “Cyber Liability”) Cyber liability insurance is an insurance policy that provides businesses with a combination of coverage options to help protect the company from data breaches and other cyber security issues. Protects the Insured against losses for the failure to protect a customer's personally identifiable information (credit card numbers, medical information, passwords,Social Security numbers, account numbers, driver's license numbers and health records. etc.) via theft, unauthorized access, viruses, or denial of service attack. Generally, cyber insurance is designed to protect your company from these primary risks through four distinct insuring agreements: 1-Network security and privacy liability 2-Network business interruption 3-Media liability 4-Errors and omission Here are some examples of such coverages: -Infringement or unauthorized use of any advertising material, copyrigh...

Insurance Risk Class An insurance risk class is a system of grouping individuals or companies that have similar characteristics, which are used to determine the risk associated with underwriting a new policy and the premium that should be charged for coverage. An insurance risk class is a way for insurers to underwrite policies based on one's belonging to a particular risk group. For example in health insurance your risk class is determined by factors like your age, health, occupation, and lifestyle. Risk classification refers to the use of observable characteristics by insurers to group individuals with similar expected claims, compute the corresponding premiums, and thereby reduce asymmetric information. People in each risk group will generally share similar characteristics that help insurers better estimate the chances that the policyholder will file a claim. Riskier risk groups will pay higher premiums for example, people who are sick, older, or have a poor driving record....

Contestability Period The contestability period lasts for two years after your life insurance policy goes in force. When the premium for an insurance policy has been paid and the policyholder is receiving insurance coverage and allows the insurer to review your coverage for misrepresentations during the application process. It is a period in a life insurance policy. If you die within the first two years of coverage, the insurance company can contest paying out death benefits. If it is discovered that the policyholder lied on the application or failed to disclose important facts, the insurance company can invalidate the policy. Common in guaranteed issue and simplified issue policies and also when death is by suicide. It should be noted the contestability period is one to two years after your life insurance policy goes into effect when the life insurance company is allowed to review your coverage for anything you misrepresented during the application process. Customers usually br...

Legal Cost The cost of defending a claim from a third party and claimant's cost for which an insured is liable. Usually covered by a liability insurance policy. Legal expenses insurance can be an affordable way to help individuals, and business owners get access to legal support when they need it. For example a doctor who buys a professional liability policy to cover his/her acts or omissions. In the case of a liability against that doctor taking to court the legal expense will be cover by the insurer since it is part of the policy cover. What is included in legal expenses/cost are any and all liabilities, obligations, losses, damages, penalties, fines, claims (whether fraudulent, groundless, false or not), demands, actions, suits, judgements, legal proceedings (whether civil or criminal), investigations, costs, disbursements and expenses (including legal fees and disbursements) of every kind and nature whatsoever, other than taxes of any kind. There are some things that is n...

Suicide Clause Suicide clause is a standard clause in life insurance policies that limits payments made to survivors of a policyholder who dies by suicide within a certain period after purchasing the policy. If the policyholder dies by suicide within the first two years of the policy, then the insurance will not give beneficiaries the death benefit. If the death occurs after the two-year period, beneficiaries receive the death benefit. The suicide clause is separate and distinct from the "contestability period" which allows your provider to review your application for intentional errors after a death claim. The contestability period only lasts for two years. Many life insurance policies contain a suicide clause or provision. Companies will typically not pay a death benefit if the policyholder commits suicide within the first one to two years that the policy is in force. Changing a policy can restart the suicide exclusion period. Insurance companies may request additiona...

FREE-LOOK PERIOD or (free look provision) If you do not agree or are not comfortable with the terms and conditions of your purchased policy, you can return the same within a specific time period as mentioned in the policy document. The free look period is for the benefit of a policyholder. You can think of a free look period as a consumer-friendly provision formulated by Insurance Regulatory Authority and adopted by the insurance company. The premium will be refunded after deducting the proportionate risk premium, stamp duty charges and cost of medical examination incurred if any (surrender charges). It is impossible for you to review the actual insurance contract language without a free look period. Here, the purpose of a free look period in insurance is to provide you enough time to assess the policy wordings before you commit to paying the premiums. The question is do you need to state the reason to cancel a policy during the free look period? Oh YES It is crucial to state ...

Activities of Daily Living (ADLs) Routine activities that people tend do everyday without needing assistance. There are six basic ADLs: eating, bathing, dressing, toileting, walking continence, getting in and out of bed or a chair. An individual’s ability to perform ADLs is important for determining disability coverage under the terms of the insurance policy. The inability to accomplish essential activities of daily living may lead to unsafe conditions and poor quality of life. The healthcare team should be aware of the importance of assessing ADL in patients to help ensure that patients who require assistance and are identified. In a long-term care insurance policy insurers use ADLs “benefit triggers” to determine if you are eligible to start receiving benefits. Activities of daily living, or ADLs, most common trigger used by insurance companies. Make sure bathing and dressing are included on the list of ADL benefit triggers because these are usually the two that a person can’t ...

Anti-theft Device An anti-theft device reduces the probability of theft of your vehicle. If you have installed an approved anti-theft device in your vehicle, insurers consider this as a sign of reduced risk for its insurance. Many insurance companies grant discounts to policyholders whose vehicles contain anti-theft devices because it helps insurers save money on coverage costs. Some of the most commonly used anti-theft devices are steering wheel lock, electronic immobiliser, car alarm, vehicle tracking system, and tyre lock. The only type of coverage in your auto insurance that covers a stolen vehicle is comprehensive coverage. If you don't pay for comprehensive coverage, your insurer won't cover your vehicle replacement bills when someone steals your car. Vehicle insurance does not include coverage for the theft of personal items inside your stolen vehicle. That said, your homeowner or rental insurer to see if they protect you against property loss. The insurer does n...

LIFE ASSURED Life Assured means the person named as the Life Assured in the Schedule whose life is assured under this Policy. In case of any unfortunate event such as the death of the Life Assured, the nominee will receive the insurance amount. Life insurance is a contract between an insurance policy holder and an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person. Depending on the contract, other events such as terminal illness or critical illness can also trigger payment. A life assured can be the policyholder but a policyholder cannot always be the life assured. Your child may take the life insurance policy for you but he may not get himself insured under the policy. It’s vital to understand the difference between a policyholder and life assured. For instance, when a husband buys an insurance policy for his wife, the husband is the policyholder whereas his wife is the life assured. #benewinsurance #...

ACT OF GOD An act of God is an insurance term that describes a natural event or disaster where there is little the homeowner could have done to prevent the damage. Acts of God include earthquakes, hurricanes, tornadoes, and even severe storms. Fire can also be an Act of God if it starts from lightning strikes. Insurers do not sell specific policies called “Act of God insurance” but you may be able to add an act of god clause or expand coverage in your existing policies. Three elements can be considered when looking at act of God; -Where no blame can be assigned to a person. -That couldn't have realistically been prevented. -Brought about as a direct result of natural causes. Acts of God do not absolve people from a duty to exercise reasonable care. However, if it was not an act of nature and began from human activity, like faulty wiring, it’s not considered an Act of God. Keep reading for some examples of acts of God. It's important to note that how the event started is ...

Insured Declared Value (IDV) It is the maximum sum insured fixed by the insurer which is provided on theft or total loss of the insured vehicle. Basically, IDV is the current market value of the vehicle. If the vehicle suffers total loss, IDV is the compensation that the insurer will provide to the policyholder. It is advisable to choose an Insured Declared Value that is neither very high nor very low but at par with the car's market value. Remember if you quote a lower IDV of your car, you will be required to pay a lower premium and ultimately, the claim amount will also be lower. The IDV is calculated based on a mutual agreement between the insurer and the policyholder. The value is based on vehicle assessment done by surveyors appointed by the insurer. You may increase or reduce your car IDV and end up paying more premium and vice-versa. Remember IDV would decrease each year at the time of renewal due to the depreciation factor which is taken into consideration by the insur...

Home Service Insurance Form of insurance distribution system in which all aspects of insurance provision (marketing, sales, premium collections, claims verification and distribution) are performed by a roaming agent who visits customers in their homes or place of work. Home service distribution was popular in North American and Western European countries in the early 1900`s. Still practice in developing countries. Notwithstanding with the advent of technology (InsurTech) this market distribution is not practice fully. Payment can be made in cash or by mailing checks. This is what leads industry experts to call it a "no-technology system." Due to its affordability, this policy is popular among a low- and middle-income demographics. It does, however, have its critics, who point out that it often appears to be inexpensive only because the cost is divided into monthly payments rather than a one-time sum. Home Service Insurance is very typical with the sales of life insur...

Maturity Benefit Maturity benefit is the amount paid to the policyholder upon completion of the policy tenure or when the policy has reached its expiration date. It simply implies that if your insurance policy has a 15-year term, you, the insured, will get a payout at the end of those 15 years. Maturity benefit is calculated as the [Sum Assured + Bonus Amounts] which have been accumulated throughout the policy term + any [Final Addition Bonus] if declared. However if the policy holder does not survive the policy tenure, the nominee will additionally get the Sum Assured amount as the Death Benefit. Maturity benefit policies provide a safety net for your family in case of death, as well as work as a saving or investment tool for you to use the accumulated funds you get on maturity on education, travel, child’s marriage, etc. Anyone over the age of 18 can buy a maturity benefit policy. These policies are flexible in nature, which means you can choose the policy term, value, payment te...

Vicarious Liability Insurance Vicarious liability (Imputed Liability) insurance protects you and your business from lawsuits resulting from mistakes caused by your employees, the independent contractors you have hired or agents that act on behalf of your small business. Vicarious liability in laws is based on a legal doctrine known as "respondeat superior" that is Latin for “Let the master answer.” When invoked, an employer can be held legally responsible, fully or partially, for the harmful acts of an employee or agent. For example, a company (called the principal) is in control of its employees. So, if an employee (called the agent) injures someone while on the job, vicarious liability rules could apply to hold the company accountable. Vicarious liability gives victims more potential defendants in a personal injury case. Vicarious liability is a form of strict liability, meaning liability in the absence of negligence. It exists when two parties have a special relationsh...