For someone new in the finance world, all the technical jargon can be overwhelming. Bringing you a daily updated glossary to understand different aspects of our website was the need of the hour.
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General Insurance Policy – It is also known as non life insurance policy and typically means any insurance policy that is not determined as a life insurance [Health, Motor, property, etc]
Incurred Claim Ratio/Claim Incurred Ratio – ICR is the net amount of claim paid against the amount of premium collected in one financial year.
Claim Settlement Ratio – CSR is the percentage of claims received by a company in a financial year by the claims actually settled by a company.
Standalone Insurance – Companies only involved in health insurance business are known as standalone insurance companies. These companies provide a wide variety of products covering different diseases at different ages. Standalone policies generally have higher premiums with better coverage as compared to taking riders with life insurance policies.
Special Drawing Rights – In 1969, International Monetary Fund (IMF) created a new form of international reserve called Special Drawing Rights also known as paper gold in order to provide a back up plan if people loose faith in currencies and further start running after commodities like gold.
Additionally, SDRs are supplementary foreign exchange reserve assets maintained by the IMF as units of account for the IMF & not as a currency per se. The rights represent a claim to currency held by IMF member countries for which they may be exchanged. The value of SDR is based on a basket of particular currencies reviewed by IMF every 5 years.