Page 378 - Ebook health insurance IC27

The Insurance Times

Benefit:
Sum of money provided in an insurance policy to be paid for certain types of loss under
the terms of an insurance policy,e.g., an accident insurance policy may provide that
certain sum be paid for death, loss of limbs or sight or loss of time. These specified
amounts are the benefits provided by the policy.

Bonus:
The benefits paid in addition to the sum insured.

Bonus Cumulative :
The benefits of sum insured is increased by certain percentage on every renewal of the
policy up to a maximum limit. The benefit is lost if the policy is not renewed within a
specified time period. This type of benefit is available in individual personal accident
policy.

Broker
A company licensed by IRDA to sell the insurance policy of all the companies

Capital sum insured (CSI):
The amount specified in an accident insurance policy for payment in the event of the loss
of limb or sight of the insured or on death of the insured to the nominee.

Cap:
A limit of benefit amount that an insurance company will pay.

Capitation:
A method of payment for health services in which an health provider is paid a fixed, per
capita amount for each person treated, regardless of the actual cost of the services

382 Guide for Health Insurance