Glossary: 20 Finance Terms You should know

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1. Claim: In the insurance world, the claim is a formal request by a policyholder to an insurance company for compensation or coverage for a covered loss or policy event.

2. Claim-settlement ratio: This ratio tells about the number of claims settled, out of the total number of claims received by the insurance company.

3. Company credentials: demonstrates the capabilities of the business, the services provided, the impact and why the audience should choose to work with the company.

4. Endowment Policy: Life insurance designed to pay a lump sum after death or specific term

5. Fintech: a portmanteau of the terms “finance” and “technology”. It refers to any business that uses technology to automate financial services.

6. Insurance: is a contract, in which an individual or entity receives financial reimbursement or protection against losses from an insurance company in case anything bad happens.

7. Insurtech: technology-led companies that enter the insurance market.

8. IRDAI: The Insurance Regulatory and Development Authority of India.

9. Joint Venture: When two or more parties pool their resources to accomplish a certain task.

10. Liberalization: refers to less government intervention in economic activities.

11. LIC: Life Insurance Corporation of India

12. Monopoly: A market where there is only one seller of a unique product, i.e., there is no competition.

13. Nationalisation: transforming privately-owned entities to public entities by bringing them under public ownership.

14. Pension: A pension is a fund into which a sum of money is added during an employee's employment years and from which payments are drawn to support the person's retirement from work in the form of periodic payments.

15. Premium: an amount to be paid for a contract of insurance.

16. Privatization: the transition of a company from being publicly traded to becoming privately held.

17. Sub-limit: a cap that the insurer puts for the policyholder on expenses against a specified medical procedure.

18. Tariff: Tax implied

19. Underwriter: is any party that evaluates and assumes another party's risk for a fee.

20. Unit-Linked Insurance Plan (ULIP): is both an insurance policy and an investment. A small portion of the money invested goes to securing your life whereas the rest of the money is invested in the market.

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