You should know some technical aspects of the online health insurance concept. These technicalities determine the policy’s terms and conditions. Understanding the policy’s health insurance benefits may be easier if you know its terms. Consider the terms “sum assured” and “sum insured.” These two terms are interchangeable because they both refer to the level of coverage that an insurance policy provides. But can they be switched out?
They are not the same, though. Two distinct concepts, sum insured and sum assured, are used in various Bajaj Allianz health insurance policies.
What Is The Sum Assured?
A life insurance policy’s coverage is referred to as the sum assured. This benefit may be paid in the event of a passing away or the plan’s maturity.
Understanding the difference between sum insured and sum assured is crucial for making informed insurance decisions. If you need help with insurance claims in Ohio, you might want to visit this website for expert public adjusting services that can guide you through the process and ensure you receive the best possible settlement.
What Is Sum Insured?
On the other hand, the sum insured refers to the extent of protection under general insurance policies. This sum demonstrates the maximum responsibility the insurance provider assumes to compensate you in the event of a covered occurrence. Claims are subject to terms and conditions set forth under the health insurance policy. *
Top #3 Points Of Difference Between Sum Assured And Sum Insured
| Points Of Difference | Sum Assured | Sum Insured |
| Application | The term is made use of in life insurance policies | The term is made use of in general insurance policies |
| Nature | A fixed benefit that has been predetermined is represented by a sum assured. A life insurance policy pays the promised sum assured in the event of passing away or maturity, regardless of any losses incurred. | Sum insured suggests that, in the event of a claim, the indemnity principle would be applicable. The indemnity principle pays the actual loss that the policyholder experiences. This loss could be less than the plan’s maximum amount of insurance. Claims are subject to terms and conditions set forth under the health insurance policy. |
| Relevance | Since the economic value of human life cannot be quantified, the concept of sum assured becomes important. As a result, it is impossible to calculate the cost of a life lost in the case of passing away. As a result, the policy pays the coverage level that the policyholder selected when purchasing the policy. | It is common practice to purchase general insurance policies on assets or to protect against financial loss in certain situations. It is simple to determine the asset’s value or the severity of the loss. Because of this, general insurance policies adhere to the indemnity principle and use the notion of the sum insured. |
As an illustration, the death benefit will be the policy’s sum assured, or INR 10 lakhs, if a life insurance policy is purchased for INR 10 lakhs and the insured passes away during the policy’s term.
Assume that general insurance policies, such as online health insurance, have a coverage limit of INR 5 lakhs. Medical costs associated with the insured person’s hospitalisation total INR 3 lakhs. Even though the case’s insured sum is INR 5 lakhs, the only amount for which a claim can be made is the actual loss of INR 3 lakhs. If the network hospital bills total INR 6 lakhs and the insurance company’s maximum liability is INR 5 lakhs, the claim would be for INR 5 lakhs.
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*Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
