MANAGEMENT

Detailed explanation-1: -The policyholder pays a certain amount called ‘premium’ to the insurance company against which the latter provides insurance cover. The insurer assures that it shall cover the policyholder’s losses subject to certain terms and conditions. Premium payment decides the assured sum for insurance coverage or ‘policy limit’.

Detailed explanation-2: -Risk in insurance terms In insurance terms, risk is the chance something harmful or unexpected could happen. This might involve the loss, theft, or damage of valuable property and belongings, or it may involve someone being injured.

Detailed explanation-3: -Often known as a comprehensive insurance policy, an all-risk property insurance policy offers you coverage in the event of those losses or damages which arise due to perils that you do not anticipate, i.e., those perils which do not fall under the named peril list.

Detailed explanation-4: -Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Third-party insurance does not provide any compensation, if: The accident was caused due to drunken driving.