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 Beneficiaries

The person or the party to whom the policy proceeds will be

paid in the event of the death or occurrence of any

contingency is called beneficiary.

 Contract

An agreement binding at law between two or more parties is

called contract.

 Premium

The amount which is paid to the insurer by the insured in

consideration to insurance contract is known as premium. It

may be paid on monthly, quarterly, half yearly, yearly or

single payment, as agreed upon basis. In other words for an

insured, it is the price for purchasing the insurance policy.

 Insured sum/ Sum Assured

The sum for which the risk is insured is called the insured

sum, or the policy money or the face value of the policy. This

is the maximum liability of the insurer towards the insured.

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