Suggest a new Definition
Proposed definitions will be considered for inclusion in the Economictimes.com
Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk.
Description: In an insurance contract, the risk is transferred from the insured to the insurer. For taking this risk, the insurer charges an amount called the premium. The premium is a function of a number of variables like age, type of employment, medical conditions, etc. The actuaries are entrusted with the responsibility of ascertaining the correct premium of an insured. The premium paying frequency can be different. It can be paid in monthly, quarterly, semiannually, annually or in a single premium.
Also See: Life Assured, Non-Standard Life, Premium Paying Term, Adverse Selection, Subrogation, Paid-Up Policy, Mitigation
PREV DEFINITION
NEXT DEFINITION
Related News
- Non-life insurers register 12% rise in gross direct premium income at Rs 24,472 crore in August: IrdaiAccording to the data provided by the Insurance Regulatory and Development Authority of India (Irdai), a total of 24 general insurers witnessed a 9.3 per cent growth in their collective gross direct premium income in August at Rs 17,101.75 crore as against Rs 15,648.63 crore in the year-ago period.
- Non-life insurers register 12% rise in gross direct premium income at Rs 24,472 crore in August: IrdaiAccording to the data provided by the Insurance Regulatory and Development Authority of India (Irdai), a total of 24 general insurers witnessed a 9.3 per cent growth in their collective gross direct premium income in August at Rs 17,101.75 crore as against Rs 15,648.63 crore in the year-ago period.
- Whirlpool of India expects washing machines market to grow in double digits in 2-3 yrsThe company, which has forayed into the front load segment of washing machines with its new XpertCare range, is aiming to have a higher growth rate than the industry volume growth, Whirlpool of India Managing Director Vishal Bhola said.
- Irdai provides more flexibility to insurers, eases limits for commissionsThe insurers have been told by Irdai that their commission and remuneration payout should be based on a board-approved policy which will be reviewed on a yearly basis. No commission shall be payable to insurance agents or the insurance intermediaries in the direct business, and the insurers must grant discounts on the premium.
- Irdai provides more flexibility to insurers, eases limits for commissionsThe insurers have been told by Irdai that their commission and remuneration payout should be based on a board-approved policy which will be reviewed on a yearly basis. No commission shall be payable to insurance agents or the insurance intermediaries in the direct business, and the insurers must grant discounts on the premium.
- Life insurers' new premium income surges by 91 percent in JulyThe rest 23 players, out of 24 total, in the private sector witnessed a nearly 19 per cent increase in their combined new premium income to Rs 9,962.22 crore in July 2022 against Rs 8,403.79 crore in July 2021.
- Life insurers' new premium income surges by 91 percent in JulyThe rest 23 players, out of 24 total, in the private sector witnessed a nearly 19 per cent increase in their combined new premium income to Rs 9,962.22 crore in July 2022 against Rs 8,403.79 crore in July 2021.
- How to port a health insurance policyPorting can be done only at the time of renewal. The new insurance period will start with the new policy. The new insurer is required to provide a cover that is at least equal to that of the existing cover.
- Should you take car insurance linked to distance, driving style?Pay-as-you-drive policies allow buyers to set a mileage limit for their car and offer them discounts over the normal premium. The lower the limit, the bigger the discount over the normal premium. The insurance is valid only up to the limit chosen by the buyer. One insurance company offers three slabs of 7,500 km, 5,000 km and 2,500 km.
- What does wedding insurance cover, how much is the premium, who offers itThe wedding cover lasts for the duration of the wedding, usually seven days, typically ending on the next day of the wedding.
What best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company?
Which of the following best describes the concept that the insured pays a small amount of premium for a large amount of risk on the part of the insurance company? Aleatory... an insurance contract is an aleatory contract that requires a relatively small amount of premium for a large risk.
What is the term for the amount of money that the insured pays the insurance?
An insurance premium is the amount of money an individual or business pays for an insurance policy. Insurance premiums are paid for policies that cover healthcare, auto, home, and life insurance. Once earned, the premium is income for the insurance company.
What is the term used to describe the maximum amount an insurance policy will pay for a loss?
The policy limit is the maximum amount that an insurer will pay under a policy for a covered loss. Maximums may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also known as the lifetime maximum.
What is the term for the amount of loss that the insured must cover out of pocket?
Deductible defined
A deductible is the amount of money that you are responsible for paying toward an insured loss.