MANAGEMENT

Detailed explanation-1: -What is the meaning of sum assured? A sum assured is a fixed amount that is paid to the nominee of the plan in the unfortunate event of the policyholder’s demise. The insurance company pays this money as per the sum chosen by you at the time of purchasing the policy.

Detailed explanation-2: -So what is a Sum Insured exactly? The Sum Insured is the maximum amount payable, after any applicable excess, to rebuild your home after a total loss (like if it burnt down). You should review your sum insured each year to check that it’s accurate.

Detailed explanation-3: -Sum insured is the maximum value for a year that your Insurance Company can pay in case you are hospitalized. Any amount above and beyond the sum insured will have to be taken out from your own pocket. This works on the principle of indemnity. It will cover the loss arising out of the damage caused to you.

Detailed explanation-4: -Sum insured is the value applied to Non-life insurance. Sum assured is the value applied to Life insurance policies. It basically is based on the principle of indemnity, that provides a reimbursement/ compensation to damage/loss. It is that fixed amount that the insurer pays the policyholder in case of an eventuality.

Detailed explanation-5: -The Paid-up Sum Assured on Maturity is the amount paid at maturity of the guaranteed savings plan after all the premiums has been paid. This amount is the Guaranteed Sum Assured on Maturity multiplied by the number of times the premiums are paid, divided by the total number of payable premiums within the plan term.