Terms used in Insurance

There are certain terms which are very often used in insurance. They are discussed in detail as follows. Insurer: The party who agrees to pay compensation on the happening of a contingency. Insured: The party who has taken a policy for his life property in the insurance company. Premium: It is the consideration for which the insurer gives protection to insured. It is the price of the insurance cover. Policy: It refers to the document which contains the terms and conditions of the insurance contract. Insured Amount: The amount for which the risk is insured is called the insured amount or policy money or face value of the policy. Peril: It is an event that causes a personal or property loss. Proposer: The person who sends the proposal form for taking an insurance policy is known as proposer.