IC 11 - Practice of General Insurance Exam Study Notes

Condition of average or average clause - a condition in some policies which penalises the insured for insuring his property at a sum insured less than its actual value known as underinsurance. In the event of a claim the insured gets an amount that is proportionately reduced from his actual loss in accordance to the amount underinsured.
Act of God perils - Catastrophic losses - Natural perils like storm, cyclone, flood, inundation, and earthquake are termed as 'Act of God' perils. These perils may result in losses to many policies of insurer in the affected region.
Salvage generally refers to damaged property. On payment of loss, the salvage belongs to insurers.
Health insurance: a contract between the insurer and the insured wherein insurer agrees to pay hospitalisation expenses to the extent of an agreed sum assured in the event of any medical treatment arising out of an illness or an injury
Health insurance policies in India normally provide a comprehensive health cover, covering nearly all illnesses and injuries requiring minimum 24 hours of hospitalization

Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points