Insurance jargon, in plain English

The insurer settles the bill directly with a network hospital, so you don't pay upfront. Needs pre-authorisation before or during admission.

The share of claims an insurer paid out of those it received in a year. Useful, but read it alongside how much they paid and how fast.

A fixed share of every claim you pay yourself, often 10 to 20%. Common on senior plans, and it applies to each and every claim.

Third-party cover plus damage to your own vehicle from accidents, theft, fire and natural disasters.

Pays a lump sum on diagnosis of a listed serious illness. It pays you, not the hospital, so it can cover lost income too.

Treatment that no longer needs a 24-hour hospital stay, cataract or dialysis, for instance, but is still covered.

What your nominee receives if you pass away during the policy term, as a lump sum, a monthly income, or a mix.

An amount you cover before the insurer starts paying. Top-up plans use a deductible, which is exactly why they're cheap.

Treatment taken at home because a hospital bed wasn't available or the patient couldn't be moved. Covered by some plans, with conditions.

An official change to your policy after it's issued, correcting a name, adding a member, updating an address.

Something the policy specifically won't pay for. Every policy has a list; reading it is the fastest way to avoid a nasty surprise.

One sum insured shared across your family. Usually cheaper than separate policies, as long as it's sized for the biggest likely claim.

A short window after buying (usually 15 to 30 days) in which you can read the policy and return it for a refund if it isn't what you expected.

Extra days after your due date in which you can still pay the premium and keep the policy alive. Miss it and the policy can lapse.

Insured Declared Value, the most you'll get if your vehicle is stolen or written off. Set it too low to save premium and you're underinsured.

The Insurance Regulatory and Development Authority of India, the regulator that licenses insurers and agents and sets the rules they follow.

When a policy stops working because the premium wasn't paid in time. You're uninsured from that moment until it's revived.

An extra charge added to your premium because you carry a higher risk, for example due to a health condition or smoking.

Money paid if you outlive the policy term. Pure term plans have none, that's precisely why they cost so little.

A hospital tied up with your insurer where cashless treatment is available. Worth checking which ones are near your home before you buy.

A reward for a claim-free year, usually extra cover at no extra premium. Some plans grow your sum insured substantially over time.

The person you name to receive the payout. Keep this updated after big life events, or the money can go to the wrong place.

Failing to reveal something the insurer asked about, health, habits, income. It's the leading reason genuine claims get rejected.

The part of a motor policy covering your own vehicle. It can also be bought standalone alongside an existing third-party policy.

How long your cover runs. Ideally until you retire or your dependents can stand on their own, usually around age 60 to 65.

The full legal document behind your policy. It's the only thing that decides a claim, brochures and sales talk don't override it.

Moving your policy to another insurer while carrying forward the waiting periods you've already served. You don't have to start over.

Costs just before admission and for a period after discharge, tests, consultations, medicines, covered on top of the hospital bill.

A condition you already had before buying the policy. It's usually covered only after a waiting period, and must always be declared.

What you pay the insurer to keep your policy running, monthly, yearly or in one go. Stop paying and the cover eventually stops too.

How long you pay premiums for, which can be shorter than the policy term, for example, paying for 20 years on a 30-year cover.

The application you fill in when buying. Everything you declare here is what the insurer relies on, which is why honest answers protect your claim.

You pay the hospital yourself, then claim the money back with bills and reports. More paperwork, same entitlement.

Refills your sum insured if a big claim exhausts it during the year. The feature that makes a family floater genuinely safe.

A term variant that refunds your premiums if you survive the term. You pay noticeably more for the same cover to get that refund.

An optional add-on that extends your base policy, like critical illness or accidental cover, for an extra premium.

A cap on the daily room charge the insurer will pay. Exceed it and other costs can be scaled down too, a small clause with big consequences.

A cap on a specific treatment or expense, separate from your overall sum insured. Cataract and knee replacement are common examples.

The guaranteed amount your family receives on a life insurance claim. Unlike health cover, it's a fixed payout, not a ceiling.

The maximum the insurer will pay in a policy year. Think of it as the ceiling on your cover, not a guaranteed payout.

Like a top-up, but it counts all your claims in a year together against the deductible, which makes it far more useful in practice.

The days you must survive after diagnosis before a critical illness lump sum is paid, commonly around 14 to 30.

Pure life cover: a large payout if you die during the policy term, and nothing back if you don't. The cheapest way to protect your family.

The legal minimum. It pays for injury or damage you cause to others, but nothing at all for your own vehicle.

Extra cover that starts once a single claim crosses your deductible. Cheap, but each claim must individually clear that threshold.

Third Party Administrator, the company some insurers use to process claims and run the hospital desk on their behalf.

The insurer's process of assessing your risk, your age, health, job and habits, to decide whether to cover you and at what price.

Time you must hold the policy before certain claims become payable, common for pre-existing conditions and maternity. The single most important number to compare.

An add-on that pays the full cost of replaced parts without deducting for wear and tear. Usually worth it on newer cars.