What Is Sum Insured?

What is NCB in Insurance Policy?

NCB( no-claim bonus) in an insurance policy is a form of discount offered to the customers for not making a claim in the previous policy period. The no-claim bonus starts from 0% and reaches up to 50% for each claim-free year. NCB in auto insurance is valid for a period of 90 days from the expiry date of the policy after which the NCB would lapse. Higher NCB means a higher discount for the customer. If there is a claim the NCB would be reduced to 0% and then increases for each claim-free year. The NCB in health insurance is the extra sum insured offered to the customer for not making any claim during the previous policy period.

What is Sum Assured in Insurance?

Sum Assurance in insurance guarantees financial coverage in case of loss due to a certain event; such as death. The event is certain to happen at any time during the policy period where the coverage is applicable. The certainty of happening is covered under the term sum assurance.

What are Premiums in Insurance?

Premiums in insurance refer to the amount of money an individual or entity pays to an insurance company for an insurance policy. Insurance premiums are typically paid monthly, quarterly, semi-annually, or annually, depending on the policy and the preference of the policyholder.

The amount of the premium is determined by several factors, including the type and amount of coverage, the perceived risk of the insured event, and the individual characteristics of the policyholder, such as age, health, and lifestyle habits. In general, the higher the risk of an insured event occurring, the higher the premium will be.

What is Agriculture Insurance Company of India?

Agriculture Insurance Company in India is National Agriculture Insurance Scheme (NAIS) gives coverage of all food crops, oilseeds, horticultural and commercial crops. It covers all farmers, both loanees and non-loanees, under the scheme. The premium rates vary from 1.5 percent to 3.5 percent of the sum assured for food crops.

What is Under Insurance?

If an asset is insured for less than its true value it is known to be under insured.

Who is an Insurance Broker?

Insurance brokers are agents that need to work for insurance companies. They sell policies but do not own them. Buying a policy through an insurance broker might sound like a good idea but think about the additional expenses that come with it. Not only would brokers charge you brokerage fees, but they will also tack on other charges to your policy.