In the insurance industry, there are many terms that you need to know and understand before deciding to use an insurance product. By knowing these terms, you will become a smart customer when choosing and buying insurance products that suit your needs.

Generally, a number of terms in insurance use English, but there are several terms that use loan words. All terms in the insurance can be found in the handbook provided by the insurance provider / company to prospective customers or policyholders. Come on, let's look at the following terms:

• Insurance Policy: Deed of insurance agreement or other documents equivalent to deed of insurance agreement, as well as other documents which are an integral part of the insurance agreement, which are made in writing and contain the agreement between the insurance company and the policy holder.

• Premium: An amount of money determined by the insurance company and approved by the policyholder to be paid based on an insurance agreement or an amount determined based on the provisions of laws and regulations that underlie the compulsory insurance program for benefits.

• Contribution: An amount of money determined by the sharia insurance company and approved by the policyholder to be paid under a sharia insurance agreement to benefit from the tabarru 'fund and / or participant investment funds and to pay a management fee or an amount of money stipulated under the provisions of laws invitation that underlies the compulsory insurance program to benefit.

• Bancassurance: Collaborative activity between the Company and banks in order to market insurance products through banks.

• Cash Value: An amount of money which is the policy redemption value at a certain time which is guaranteed as the right of the policy holder.

• Insurance claims: Claims from the Insured in connection with an agreement contract between the insurance and the Insured, each of which binds itself to guarantee payment of compensation by the Insurer if insurance premium payments have been made by the Insured, when a disaster is suffered by the Insured. .

• Insured: The party who faces the risk as stipulated in the Insurance agreement or reinsurance agreement.

• Insurer: A party that has a formal license to carry out business activities related to the risk taking of another party under a policy; for this coverage, the insurer receives a premium from another party as the insured; as a rule, the Insurer is an insurance company.

• Underwriting: The process of identifying and selecting risks.

• Entry age: Insured's age which is determined based on the last birthday on the Effective Date of Insurance and will be added on every Policy Anniversary.

• Coverage Period: The period of insurance coverage for the Insured from the Effective Date of Insurance to the End of Coverage Date as stated in the Policy Data.

• Insurance agent: Employees of an insurance company whose job is to market products or serve prospective customers, starting from submitting the policy provisions to the contents of the policy agreement after becoming a policy holder.

• Actuarial: Science in insurance that studies, predicts and calculates future financial risks by combining several disciplines including mathematics, finance, statistics and computer programming.

• Heir: The name of the person listed in the insurance policy as the party receiving compensation in the event of death to the Insured.

Source: ojk.go.id