What is the sum assured and sum insured policies: In the era of corona virus epidemic, the need for insurance has increased. In the case of insurance, you will often hear two terms ‘sum assured’ and ‘sum insured’. These two terms may sound similar, but theoretically there is a great difference in the meaning of both. Sum Assured (Sum Insured) informs you of the benefits accrued, while Sum Insured (Sum Insured) is related to the compensation of insured loss. Every person taking insurance should be clear about the meaning of these terms so that there will be no further confusion.
Sum Assured (S Um Assured )
There is a pre-decided benefit between the sum assured, the insurance taker and the giver. This amount is fixed at the time of taking the policy. There is a complete guarantee of getting it in the amount decided before taking the policy. It is usually associated with life insurance.
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In a life insurance policy, the insurer promises to pay a predetermined amount to the nominee in the event of death of the person taking the insurance during the policy term. This is called the sum assured. In a life insurance policy with a maturity benefit, the sum assured along with the bonus is returned to the policyholder at the end of the term of the policy.
Sum insured (S Um Insured )
The sum insured is based on the principle of compensation. By compensation or compensation, the amount is to be repaid in the event of loss / theft of the injured / sick or any of his property such as vehicle, property, expensive goods etc. Non-life insurance policies such as health, motor etc. insurance policies work on the basis of compensation and it covers the loss to the insurance taker. This is called even insurance.
For example, in a health insurance policy, someone has been insured for one lakh rupees. That is, if the person taking the insurance is ill and admitted to the hospital, then the insurance company will bear the expenses of up to Rs 1 lakh. There is no sum insured benefit, it is a compensation for the expenses incurred by the insurer. If the expenses exceed the sum insured, the rest of the expenses have to be borne by the insurer.
