Utmost Good Faith is one of the principles that insurance is based on. It denotes a positive duty of the person seeking insurance to voluntarily disclose accurately and fully, all facts material to the risk being proposed whether requested or not.

Third Party Liability insurance is mandatory for all vehicles plying on public roads in India. This covers Liability for injuries and damages to others that you are responsible for. In addition, it is prudent to cover loss or damages to the vehicle itself by way of Comprehensive/Package policy, which covers both “Liability” as well as “Own damage” to the insured vehicle. Liability Only cover is also known as Act Only cover.

The proposer of the policy should first and foremost have an interest in the assets being proposed for insurance, i.e. he/she should stand to lose financially in the event of loss or damage to such assets. Secondly, the proposer should submit a proposal form (which can be obtained at any insurer’s website or office). The proposal form should disclose all details, which are true to the insured’s best knowledge and other information, which the proposer may feel is relevant.

Fire and other perils (normally covered under a fire insurance policy) can cause loss / damage to buildings. There have been fire accidents that have completely destroyed multi-storey buildings. Floods can also bring about devastating losses. Similarly, Riots and Acts of Terrorism can also produce huge losses to human lives as well as property.

There are a variety of insurance policies covering different kinds of risks like fire, flood, earthquake for the building and contents, sudden breakdown of your machinery or damage to the Electronic Equipment in your office, Workmen compensation, Public and Professional liability, Money-in-Transit, Fidelity Guarantee etc. You can choose the limits of Sum Insured for each section of coverage offered depending on the insurance needs of your enterprise. It could also include employer’s benefit policies such as Group Personal Accident and Group Health Insurance etc, all under a Comprehensive package insurance policy.

Cashless facility means a facility extended by the Insurer or TPA on behalf of the Insurer to the insured, where the payments for the costs of treatment undergone by the Insured in accordance with the policy terms and conditions, are directly made to the network provider by the Insurer to the extent pre-authorization is approved. Cashless facility shall be offered only at Network Providers which have entered into an agreement with the insurer to extend such services.

Offering health insurance coverage to any person who was already suffered / has been suffering from any disease / illness is subject to underwriting policy of an insurer. It is also to be informed that providing coverage for those persons who were cured of any specific illness / disease is subject to product design of the Insurers. Insurers design products keeping in view certain factors such as viability and self-sustainability of products and the needs of the intended target market segment.

A policyholder desirous of porting his/her policy to another insurance company shall apply to such insurance company to port the entire policy along with all the members of the family, if any, at least 45 days before, but not earlier than 60 days from the premium renewal date of his/ her existing policy.

AYUSH Treatment refers to the medical and / or hospitalization treatments given under 'Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy systems'. Whether or not AYUSH treatment is allowed in a Health Insurance Policy is subject to the product features offered by the insurers.

Grace period means the specified period of time immediately following the premium due date during which a payment can be made to renew or continue a policy in force without loss of continuity benefits such as waiting periods and coverage of preexisting diseases. Coverage is not available for the period for which no premium is received.

If the policy is discontinued by not paying the renewal premiums before the expiry of grace period, the policy is governed by the discontinued policy conditions, which will be mentioned in the terms and conditions of the policy.

Yes, the policy benefits will remain in force during the grace period and the same will be mentioned in the applicable terms and conditions of the policy document.

Grace period is a period of 15 days for monthly modes and 30 days for yearly, half-yearly and quarterly modes available to the policyholder, from the date of the first unpaid premium, to pay the renewal premiums and keep the policy alive. During the grace period, the insurance coverage will be available as per the terms and conditions of the policy.

You can choose to have protection for a set period of time with Term Insurance. In the event of death or Total and Permanent Disability if the benefit is offered), your dependants will be paid a benefit. In Term Insurance, no benefit is normally payable if the life assured survives the term.

With whole life insurance, you are guaranteed lifelong protection. Whole life insurance pays out a death benefit so you can be assured that your family is protected against financial loss that can happen after your death. It is also an ideal way of creating an estate for your heirs as an inheritance.

The allocated (invested) portions of the premiums, after deducting all the charges and premium for risk cover under all policies in a particular fund as chosen by the policy holders, are pooled together to form a Unit fund.

Under this plan, certain percent of the sum assured is returned to the insured person periodically as survival benefit. On the expiry of the term, the balance amount is paid as maturity value. The life risk may be covered for the full sum assured during the term of the policy irrespective of the survival benefits paid.