A comprehensive insurance terminology guide to help you understand policy terms, important clauses, and your rights before buying or renewing.
Sum Assured is the amount specified under a life insurance policy for the applicable insured event, subject to the policy terms and conditions.
An educational mathematical estimation of the financial protection your family would need if earnings stop.
A nominee is the person designated by the policyholder to receive policy proceeds in the event of the life assured's demise, subject to applicable law and policy terms.
Optional supplementary benefits attached to a base policy for extra protection (e.g. Critical Illness, Accidental Death).
The cash amount payable to the policyholder if a traditional life policy is terminated prior to its maturity date.
An extra window of 15 to 30 days allowed beyond the premium due date to pay without policy lapsing.
The maximum annual indemnity limit up to which a health policy will reimburse actual hospital bills.
Any health condition, injury, or medical ailment diagnosed or treated within the timeframe specified in the policy.
Mandatory timeframe (initial exclusion, specific illness waiting, and PED duration) before claims become eligible.
A clause requiring the insured to pay a fixed percentage (e.g. 10%-20%) of every claim bill out of pocket.
An initial fixed amount that the policyholder must pay before the insurance policy starts paying benefits.
Refills your sum insured if exhausted due to hospitalization during the policy year per terms.
A daily ceiling on hospital room charges. Exceeding this may trigger proportionate deductions on hospital expenses.
A bonus reward (cumulative bonus or discount) earned for every claim-free policy year.
Facility where the network hospital directly coordinates treatment billing with the insurer or TPA.
High-value health cover that activates once cumulative annual medical expenses cross a chosen deductible.
Medical procedures or surgeries requiring less than 24 hours of hospitalization due to modern technology.
The statutory right of a health policyholder to transfer their policy to another insurer without losing accrued waiting period credits.
The maximum sum insured for a vehicle, calculated as manufacturer selling price minus standard depreciation based on vehicle age.
Add-on cover that minimizes depreciation deductions for plastic, rubber, glass, and metal replacement parts.
Statutory mandatory insurance protecting against legal financial liabilities arising from injury, death, or property damage to third parties.
Covers repair/replacement of engine internal parts damaged due to water ingress or oil leakage.
Covers cost of consumable items like engine oil, nuts, bolts, grease, brake oil, and coolant during accident repair.
Trial window from policy document receipt allowing policyholders to review terms and cancel subject to applicable rules.
The percentage of total claims paid out of total premiums collected by an insurer in a financial year.
The ratio of total claims settled versus total claims received by an insurer within a financial year as per IRDAI annual reports.
Income tax deductions on life insurance (80C) and health insurance (80D), plus applicable tax exemptions under Section 10(10D).
Fixed benefit insurance paying a lump sum payout upon confirmed diagnosis of specified critical ailments.
The financial sum assured paid to the designated nominee upon the unfortunate demise of the policyholder during policy tenure.
The reduced sum assured that a traditional savings life policy acquires when premium payments are discontinued after a qualifying period.
An IRDAI-registered insurance intermediary (like RakshaPoint) authorized to solicit and service insurance products through Insurance Sales Persons (ISPs).
Our Insurance Sales Persons (ISPs) provide parameter-based guidance on clauses, exclusions, and waiting periods.
Transparent parameter-based policy guidance from qualified Insurance Sales Persons (ISPs) under IRDAI IMF regulations.