Top 10 Insurance related questions and answers ( 2023 )

 1. What do you mean by ‘insurance coverage’?

Ans - Insurance coverage refers to the extent of protection provided by an insurance policy. It is the range of risks or events that an insurance policy covers and the amount of compensation or benefits that the policyholder is entitled to in the event of a covered loss or damage. Insurance coverage can vary depending on the type of insurance policy and the specific terms and conditions of the policy. For example, health insurance coverage may include coverage for medical expenses, hospitalization, and prescription drugs, while car insurance coverage may include coverage for damage to the vehicle, liability for bodily injury or property damage, and theft or vandalism. The level and type of insurance coverage needed will depend on the individual's circumstances, risk exposure, and financial situation.

2. What is the contestable period’ in insurance policy?

Ans - The contestable period, also known as the contestability period, is a specific timeframe within an insurance policy during which the insurance company has the right to contest or investigate a claim made by the policyholder. In most cases, the contestable period lasts for the first two years after the policy has been issued.

3. What do you understand by an insurance policy?

Ans - An insurance policy is a legal contract between an insurance company and an individual or entity, known as the policyholder. The policy outlines the terms and conditions of the insurance coverage, including what is covered, the limits of coverage, and the premiums that the policyholder is required to pay.

4. What is a premium?

Ans - A premium is the amount of money an individual or entity, known as the policyholder, pays to an insurance company in exchange for an insurance policy. The premium is usually paid on a monthly, quarterly, or annual basis, depending on the terms of the policy.

5. What do you understand by "Insured" and "Insurer"?

Ans - "Insured" and "insurer" are two important terms in the insurance industry that refer to the parties involved in an insurance contract.

The "insured" refers to the individual or entity that purchases an insurance policy to protect themselves from financial loss or damage due to unforeseen events, such as accidents, natural disasters, or illness. In exchange for paying a premium, the insured receives protection and financial reimbursement if the event occurs and results in a covered loss.

The "insurer" refers to the insurance company that provides the insurance coverage and agrees to pay out claims if necessary. The insurer collects premiums from the insured and uses the funds to cover the costs of claims and to generate a profit.

6. What is ‘declaration page’ in insurance policy?

Ans - A declaration page, also known as a "dec page," is a document that provides an overview of the key details of an insurance policy. The declaration page is usually located at the beginning of the policy and serves as a quick reference guide for the policyholder.

7. What do you understand by "Loss Payee"?

Ans - A loss payee is a party named in an insurance policy who is entitled to receive the proceeds of an insurance claim if the policy's insured property is damaged or destroyed. The loss payee may be a lender or other party with a financial interest in the property, such as a leasing company or an equipment supplier.

8. What is Co-insurance?

Ans - Co-insurance is a concept in insurance that requires the policyholder to share in the cost of a loss with the insurance company. It is commonly found in property insurance policies, such as commercial property insurance and homeowners insurance.

9. What Happens If a Person Doesn’t Pay Premium Payments?

Ans - If a person fails to pay premium payments on their insurance policy, the insurance company may cancel the policy or consider it as lapsed. This means that the policyholder will no longer be covered by the insurance policy, and will not be able to make any claims for losses or damages.

The specific consequences of not paying premiums depend on the type of insurance policy and the terms outlined in the policy. In some cases, the policy may have a grace period during which the policyholder can still make the payment and keep the policy in force. However, if the grace period passes and the payment is still not made, the policy will likely be canceled or considered as lapsed.

It's important to note that if a policy is canceled or lapsed due to non-payment of premiums, the policyholder may face difficulty in obtaining new insurance coverage in the future. Additionally, if the policy was required by law or a contract, such as in the case of auto insurance or mortgage insurance, the policyholder may face legal consequences for not maintaining coverage.

Overall, it's important to make timely premium payments to maintain insurance coverage and ensure that the policy remains in force. If you are having difficulty making payments, you may want to speak with your insurance company to discuss options such as changing the payment schedule or adjusting the coverage limits to make the policy more affordable.