Does indemnity apply in liability insurance?

Yes, liability insurance provides indemnity by covering legal expenses, settlements, and compensation payments when the insured is held legally responsible for injuries, damages, or negligence. This protects businesses, professionals, and individuals from financial burdens arising from legal claims.

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What is the difference between cashless and reimbursement insurance claims?

In a cashless claim, the insurer pays the service provider directly, while in a reimbursement claim, the policyholder pays upfront and then submits receipts for repayment.

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What happens if my policy lapses?

If your policy lapses, you lose coverage, and depending on the insurer, you may need to go through underwriting again to restore your policy.

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Will my pet’s illness affect my future premiums with pet insurance?

If your pet develops an illness, it may not affect future premiums if the illness is covered. However, certain claims or high treatment costs could lead to higher premiums when you renew or change your policy.

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How do I determine the right coverage amount for term life insurance?

The coverage should be based on income replacement needs, outstanding debts, future financial goals, and dependents’ living expenses to provide adequate protection for your family.

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How do insurers determine the parameters for a parametric insurance policy?

Insurers collaborate with experts to define measurable parameters, such as wind speed or earthquake magnitude, to trigger a payout, ensuring that the parameters are both relevant and accurate.

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Who can be named as a beneficiary?

A beneficiary can be anyone the policyholder chooses, including family members, friends, trusts, or even a charitable organization. It is important to ensure the beneficiary is clearly named to avoid confusion.

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What is the difference between warranties and representations in insurance?

Warranties are binding promises in a contract, while representations are statements made by the policyholder that, if false, could lead to claim denial or cancellation.

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