An insured has to be very careful in choosing the limit of indemnity, for that is the maximum amount that would be reimbursed at the time of claim.
Sum Insured - Personal accident insurance - some insurance companies may give a benefit equal to 60 times or 100 times of the insureds monthly income for a particular disability
Sum Insured - Motor insurance - Insured's declared value [IDV] is the value of the vehicle, which is arrived at by adjusting the current manufacture's listed selling price of the vehicle with depreciation percentage as prescribed in the IRDA regulations
Sum Insured - Fire insurance - may be fixed on the basis of market value or reinstatement value for buildings / plant and machinery and fixtures. Contents are covered on the basis of their market value which is cost of the item less depreciation.
Stocks insurance - Sum insured is their market value
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