Insurance Abbreviations: Decoding Industry Jargon
by Yuvi K - December 16, 2023
Insurance Abbreviations – Decoding Industry Jargon
Insurance is an important part of financial planning and is essential for protecting your family, business, and future. However, to understand and purchase insurance, it is important to have a clear understanding of the terminology used in the industry. Abbreviations and acronyms are used widely in the insurance industry to communicate more effectively and efficiently.
This article explains some of the common insurance abbreviations and their meaning to help you decode industry jargon. To make it easier for you to understand, all terms are expressed in Hindi as well (in parentheses after the English terms).
Types of Insurance
- Life Insurance: LIFE (ZINDAGI BIMA)
- Health Insurance: HEALTH (SWASTH BIMA)
- Vehicle Insurance: VEHICLE (GAADI BIMA)
- Property Insurance: PROPERTY (MAAL BIMA)
- Travel Insurance: TRAVEL (SAFAR BIMA)
Common Insurance Terms
Knowing these common insurance terms will help you to better understand the terminology used in insurance policies and make an informed decision about your financial risks.
| Insurance Term | Meaning |
|---|---|
| Premium: The sum that needs to be paid to the insurer periodically in exchange for insurance cover | PREMIUM (BHAWISHYYA VIMAAN) |
| Sum Assured: The maximum amount that is payable on the occurrence of a claim event | SUM ASSURED (MAHATVAPOORN SABANDH) |
| Coverage: The term used to describe the extent of risk and loss that is covered by the insurance policy | COVERAGE (VIMAAN) |
| Beneficiary: A person or entity that will receive the benefit of a policy in the event of a claim | BENEFICIARY (SHAAYAK) |
| Claim: A request for payment that is made to an insurer in the event of a covered loss | CLAIM (KALAAP) |
| Exclusion: A condition or incident that is not covered by an insurance policy | EXCLUSION (VIKSHEP) |
| Endorsement: An amendment to an insurance policy that increases or decreases the coverage or changes the terms in some other way | ENDORSEMENT (DAKSHINAAYAN) |
| Rider: An additional coverage that can be added to an existing insurance policy for additional protection | RIDER (NAVESHI) |
Insurance Industry-Specific Abbreviations
Besides the terms mentioned above, the insurance industry also uses several industry-specific abbreviations. Here is a list of some of the most commonly used ones:
| Insurance Term | Meaning |
|---|---|
| ULI: Universal Life Insurance | ULI (SARAL ZINDAGI BIMA) |
| VUL: Variable Universal Life Insurance | VUL (UCHCHATAR ZINDAGI BIMA) |
| D&O: Directors’ and Officers’ Insurance | D&O (PAALAK AUR UPAALAKON KA BIMA) |
| ERISA: Employee Retirement Income Security Act | ERISA (KARMACHARI VRDDHI ARTHIK SURAKSHA NITI UPVESHAN ACT) |
| HMO: Health Maintenance Organizations | HMO (SWAASTHA BIMA NAV AKSHAR) |
| LLC: Limited Liability Company | LLC (SANYUKT AADHIKAARIKA VARG) |
| LTC: Long-Term Care Insurance | LTC (DAURANATHA SAMAAROP BIMA) |
| MSA: Medicare set-aside (an arrangement to set aside funds to cover future Medicare-eligible medical expenses) | MSA (MEDIKAIRT SET-ASIDE) |
Conclusion
Understanding the insurance industry jargon can be a difficult task. The abbreviations and acronyms can make it even more confusing. This article has explained some of the commonly used terms and abbreviations to help you make better decisions regarding your insurance needs.
Insurance is an important part of financial planning. When you understand the terminology used in the insurance industry, you can make smart decisions and ensure you and your loved ones are always protected.
