5 most significant insurance terms that you need to know!
3 Oct 2017
Finding a suitable insurance policy for yourself would seem like a very easy task, but it can also turn into the most dreadful and tedious journey if you do not know the correct terminologies to understand what it means. Don’t let the heavy and complicated terminology bog you down, here is a comprehensive list of 5 terminologies that will help you master the art of understanding the policy.
Premium is the total or the final amount paid on the Sum Insured. For example, if you invest in an Auto Insurance of Rs 25 Lakh, and as per your Insurance Policy, you have to pay Rs 60,000 on yearly basis, then Rs 60,000 is your premium. It is also important to know the fact that as the IDV (Insured Declared Value) or the value of your auto/motor decreases, the amount of premium also decreases.
Provider Network is also known as In-Network Provider. It is a term that is used to explain a group of Health Care and Medical Providers who have contracted with the insurance company in concern. All the providers in the provider network usually charges less than Individual Medical Institutes or Non-Network Hospitals.
Beneficiary is essentially the individual who would get the benefits from the insurance in case of the death of the original policy holder. For example, if someone buys a fully covered Motor Insurance, and unfortunately meets with an accident, the sum insured would go to the beneficiary.
No Claim Bonus
No Claim Bonus or NCB is the term that is used to explain the amount of money that is given as a bonus or reward to the policy holder if he/she does not claim the insurance in the preceding year. The amount of discount would usually range from anything between 20-50% of the premium.
Zero Depreciation Cover
As the name suggests, this is the kind of Car Insurance or Two-Wheeler Insurance that has Zero Depreciation Policy. By adding this cover to your policy, you can get the full value on all the parts and the vehicle in case of accidents or mishaps. In all the other types of policies, the value of the vehicle and the parts keeps reducing as they age.
While you keep yourself covered for any health or road emergencies, it is also important to be informed about the policies and options available to you. We at Bharti AXA care for your health and happiness. On our portal, you can now secure the best Motor Insurance Policy online within a few minutes! Not only this, we will also help you with tricks and ideas on saving-up on Car Insurance Premiums.
Why choose Bharati AXA Health Insurance
With health insurance plane, financially secure yourself and your family at affordable premiums