Glossary Index

Glossary on General Insurance Terms starting with D


D.A.F. (DELIVERY AT FRONT) : Contract term whereby sellers undertake goods delivery at predetermined location or point at the border of two countries

D.D.P. (DELIVERY DUTY PAID) : Contractual term under which the sellers agree to deliver goods at the destination within the country and pay the customs duty

D.D.U. (DELIVERY DUTY UNPAID) : Sale contract where seller agrees to deliver goods at the prespecified destination in the country of the buyer; however, the duty must be paid by the purchaser

D.E.F. (DELIVERY EX SHIP) : Seller is responsible for arranging shipment of goods to the destination port as well as incur the costs and risks until delivery to the said destination

D.E.Q. (DELIVERY EX QUAY) : Similar to the DEF contract; with an additional responsibility of the seller to ensure goods are placed at quay

DACOITY : Robbery by group of people; the Standard Burglary Insurance Policy offered to businesses and dwellings cover any losses arising due to dacoity

DAMAGE BY HOOKS, MUD, OIL OR OTHER EXTRANEOUS SUBSTANCES. : Marine insurance policy extensions for group of extraneous perils; subject to related causes through payment of higher premium; losses categorized under this head include damages resulting from contamination through extraneous materials, oil, hook, or mud

DAMAGES : Monetary compensation provided at law for any civil wrongdoing or breach of a contract

DATE OF ISSUE : Date of issue of the insurance plan; provides evidence of coverage being offered by insurer to the insured

DCDRF : District Consumer Disputes Redressal Forum; complaints against insurance companies for deficiency in services filed by the insured in the district forums where compensation claims are not over INR 5 lacs; district forums can have jurisdication on one or multiple districts

DEAD WELL : Any well that ceases to produce gas or oil either permanently or temporarily

DEADFREIGHT : Space booked on the ship but not used by the party still entails payment of freight charges known as deadfreight; right to these charges can be exercised by the vessel owner under certain charter parties

DEADWEIGHT : Maximum weight in tons available for cargo, crew, water, fuel, and other stores combined together that can be carried by the vessel when loaded to its loadline level

DEALER : An authorized agent of manufacturers responsible for sales of manufactured vehicles or goods

DEATH : End of life due to accident; to claim compensation under these circumstances covered under the insurance contract requires the beneficiary to produce death certificate issued by the authorities; sometimes post-mortem certificate may also be required

DEATH BENEFIT : Payment made to nominee or legal heir of the insured within the Personal Accident Insurance plan on the demise of the holder

DEATH CLAIM : Any claim lodged within the insurance policy by the beneficiary on the death of the insured individual

DEBENTURE : Bond backed by general credit of the issuer; no property is specifically pledged as security for the bond

DEBENTURES -CONVERTIBLE / NON-CONVERTIBLE : Debentures issued with an understanding that on expiry of a certain predetermined period, the bonds will be converted to equity at a specified price or as per a formula are convertible debentures; debentures without such clause of conversion is specified, these are non-convertible bonds

DEBENTURES - OPTIONALLLY CONVERTIBLE : Companies can issue debentures that can be converted to equity shares by the holders at the end of a specified period at an agreed price; in case the option is not used by the holders the debentures are redeemed on the specified date

DEBENTURES - PROJECT : Monies raised by companies through issue of debentures for capital expenditure or setting up new project; duration of the bonds is long-term comprising the construction period as well as the additional time needed to earn profits through the project where debentures can be redeemed; project debentures are often appraised by financial institutions

DEBENTURES - RATED OR UNRATED : Debentures often receive ratings from agencies like CRISIL or ICRA; ratings depend on capability of the issuer to redeem tbe debentures on the due date and its capability to pay interest when due; ratings vary from AAA to BBB; IRDA norms require debentures rating to be at least AA that may be lowered to A+ under certain conditions

DEBENTURES- SECURED : Debentures are charged against the security of assets of the issuing company

DEBENTURES -UNSECURED : Debentures are issued without any collateral by the issuer

DEBENTURES -WORKING CAPITAL : Companies may raise money through issue of debentures used for working capital; commonly these are of short durations (oe or two years); could be secured or unsecured

DEBIT AND CREDIT BALANCES : Entries that are passed are balanceable; when debit items value is higher account shows debit balance and vice versa

DEBRIS REMOVAL CLAUSE : Clause attached to standard fire and special risks cover that entails higher premium offers additional coverage greater than the limits prescribed in the standard insurance document; agreement between the insured and the insurer for costs and expenses necessarily incurred by the policy holder for removing debris due to any accident

DEBT SERVICE : Required cash during a period (often one year) towards interest payment and principal repayment for current maturities on outstanding debt obligations; project funders require project owners to procure insurance for debt servicing in case there is delay to commence the project due to accidental damage to the materials

DECEPTIVE PRACTICE : Hiding of the actual facts; either the agent or insurance company giving an impression to prospective insured of certain cover being available in the policy while such cover is not written in the insurance contract

DECISION SUPPORT SYSTEM : Component of the management information system providing answer to issues and integrating the decision maker as part of the system

DECISION TREE : Illustrative diagram showing the various possible consequences of different decisions during different stages of the decision making process

DECK CARGO : The cargo carried by the ship on its deck; cargo insurance is commonly available for goods being carried under deck unless the policy document clearly states the cover being available for goods being shipped on deck

DECLARATION : Statements within the insurance contract providing information related to the life or property that is to be insured and used to underwrite and rate and identify the property or life that needs to be covered

DECLARATION CLAUSE : Clause found in marine cargo open cover or open policy; provides all the dispatches within the purview of open cover or policy needs to be declared without any exception irrespective of arrival or not

DECLINATURE : Refusal by the insurance company for acceptance of proposed risk or for renewal of an existing policy

DEDUCTIBLE : Proportion of loss borne by the insured towards any claim; two forms; amount of excess is mentioned as fixed amount or percent of sum assured or amount of the claim and time excess under which the insured is not entitled to any claim during the stated period found within the policy document

DEDUCTIBLE, PERIOD : Applicable deductible related to every claim expressed as the number of days relating to which it will not be payable under the insurance contract

DEFEASIBLE INTEREST : Relevant to marine adventure; interest may be discontinued once the travel has commenced; for example importer insuring cargo pruchased from overseas seller although he is entitled in case seller is guilty of default or delay for rejecting goods or treat at sellers' risks

DEFENDANT : Either of the parties found negligent in law suits from whom the other party tries to procure relief for certain wrongs to the latter being committed by the former

DEFENSE COSTS : Expenses and costs incurred by defendants in legal suits connected to defending the filed case against her or him by the plaintiff

DANGEROUS OR HAZARDOUS GOODS : Liquids, soilds, or gases that can be harmful to the environment, human beings, other living organisms, or property; often subject to chemical regulations

DEPRECIATION : Allowance for reduction in value of property due to deterioration, damage, wear and tear, or obsolescence; expressed as percent of the sound value of the property

DIRECTORS' AND OFFICERS' LIABILITY : Personal liability cover for directors and officers because of wrongful acts in their managerial capacities; costs of defending these are also covered and can be paid before final judgement; acts as protection for any claim brought against company's directors or officers for alleged or actual neglect of duties, errors, or misstatements while in their management position

DISABILITY : Any condition curtailing to an extent an individual's capability to carry on her or his normal tasks; could be temporary or permanent; or partial or complete disability

DISMEMBERMENT : Includes loss of being able to use certain predefined bodily parts; including eyes and limbs due to an accident

DISMEMBERMENT INSURANCE : Compensation paid in the event the insured suffers from loss of eyesight or use of his or her limbs in an accident

DOMICILIARY HOSPITALIZATION : Treatment of patient who has been sent home because of lack of accommodation at the hospital or when the patient is not in a condition to be moved to a hospital; made possible by the recommendation of the doctor or treating physician and determined on the base of the case merit

DAMAGE TO PROPERTY OF OTHERS : Damages covered to a predetermined amount per occurrence on behalf of the insured damaging property of others; payment is payable inspite of lack of legal liability; such cover is included within the contract made for the homeowners policy

DECLARATIONS : Various statements within the insurance plan providing information about the life or property being insured or used for the purpose of underwriting and rating requirements and for identifying the life or property to be covered

DECLINATION : Insurance company's refusal for providing insurance to an individual after carefully evaluating the application and other related factors

DEFERRED ANNUITY : Annuity providing towards the income payments for beginning at a future specified date

DEFERRED COMPENSATION : Arrangements through which compensation for employees for current and past services is delayed to a future date

DEFERRED GROUP ANNUITY : Kind of group annuity offering for purchasing each year of paid-up capital deferred annuity for each group member; total amount being receivable by member at the time of retirement being the amount of deferred annuities

DEFINED BENEFIT PLAN : Pension policy stating either benefits receivable by the employees on retirement; or technique used to determine these benefits; employer contribution are determined actuarially

DEFINED CONTRIBUTION PLAN : Plan under which contribution rate is fixed and the receivable benefits by the employees on retirement depending on an extent on their earning and contribution

DENTAL INSURANCE : Group or individual plan helping the payment of normal dental service costs as well as the damage to teeth due to an accident

DEMUTUALIZATION : Procedure to modify the legal structure of the insurance service provider through mutual form of ownership to stock kind of ownership company

DEPENDENCY PERIOD : Time period following the readjustment whereby the surviving partner's children are below eighteen years and dependant on the parents

DEPENDENT BENEFITS : Social security benefits that are available to children or spouse of the beneficiaries

DEPOSIT ADMINISTRATION GROUP ANNUITY : Group annuity plan offering accumulation of the contributions within an undivided fund from which the annuities purchased are as individual members of group retirement

DEPOSIT PREMIUM : Deposited premium paid by the potential holder at the time of application to avail insurance cover; usually equals minimum of first month's estimated premium amount and is applicable toward the actual premium at the time of billing

DEPOSIT TERM INSURANCE : Kind of term insurance cover not involving deposit wherein first year premium is significantly higher than premiums for other years; endowment payable at the end of term period; in some instances partial endowment is applicable for purchasing new term plan or whole life insurance

DIAGNOSIS-RELATED GROUPS (DRGS) : System used for reimbursement of health care service providers fixed sums for the care delivered related to standard diagnostic categories

DIFFERENCE IN CONDITIONS INSURANCE (DIC) : An all risks covering other perils that are not covered under the basic property insurance plans; supplemental to and exclusive of the coverage provided through underlying contractual agreements

DIRECT LOSS : Financial losses resulting from directly insured risks

DIRECT PLACEMENT : Selling an entire issue of stocks or bonds by the issuer to one or several large financial institutions like insurance companies without marketing the issue publicly

DIRECT PREMIUMS WRITTEN : Casualty and property insurance written premiums (lower return premiums) without providing for any allowance for the premiums towards ceded or assumed reinsurance

DIRECT RESPONSE SYSTEM : Marketing technique whereby insurance is sold without seeking services from agents; prospective buyers are solicited through advertisment in newspapers, mail, magazines, radio, TV, and other media

DIRECT WRITER : Industry term for companies that use in-house sales personnel for writing policies; sometimes refering to companies that contract through exclusive agents

DISABILITY BENEFIT : Periodic payments (often monthly) paid to the participants under certain retirement plans; when these participants are eligible to receive the benefits and are totally or partially disabled before the regular date of retirement

DISABILITY INCOME INSURANCE : Any form of health insurance providing periodic payments for replacing the income when insured individual is unable to work as a result of illness, disease, or injury

DISABILITY INSURED : Status of any individual insured for receiving disability benefits under Old Age, Survivors and Disability Insurance program; covered individual should be completely insured and have at least 20 quarters of such coverage during the last 40 quarters ending in the quarter when disability occurs; these quarterly requirements reduce for individuals who are below the age of 30

DISAPPEARING DEDUCTIBLE : Deductible within the insurance plans providing reducing deductible amounts as the losses increase in size; whereby smaller claims are not reimbursement but larger losses are fully compensated

DISPOSABLE PERSONAL INCOME : Personal income after the payment of personal tax and non-tax payments; income available for the individuals for savings and expenditure

DIVERSIFIABLE RISK : Any risk that is eliminated by investors through diversified portfolios

DIVIDEND : Return of partial premium within participating insurance reflecting difference between charged premium and combination of mortality, investment experience, and expense; these premiums are calculated for providing margins over the anticipated cost of procuring insurance protection

DIVIDEND ADDITION : Sum of paid-up insurance acquired with a policy dividend and included in the face amount of the insurance plan

DOCTRINE OF REASONABLE EXPECTATIONS : Legal doctrine holding policies to be interpreted as per the tenet of an individual without any legal training would interpret the same

DOLLAR THRESHOLD : Within no-fault vehicle insurance stating the dollar threshold; preventing individuals from suing in torts for recovering pain and suffering unless medical expenditures is greater than specified amount

DOMESTIC INSURER : Insurance company that is domestic within the state of its incorporation

DONOR : Person who makes a gift

DOUBLE INDEMNITY : Provision in the policy usually assoicated with demise doubling the payment of designated benefits in case of the occurrence of certain types of accidents

DRAMSHOP LAW : Legal provision imputing negligence to the owners of any business selling liquor in the event an intoxicated person causes damage to the property or injuries to another individual; usually exclusion under general liability insurance plan

DREAD DISEASE INSURANCE : Insurance cover offering unallocated benefits subject to a maximum amount towards expenditure incurred related with the treatment of certain kinds of diseases like spinal meningitis, poliomyelitis, cancer, and encephalitis

DRIVER EDUCATION CREDIT : Students discounts or decrease in the premium amount for younger drivers becoming eligible after the completion of driver education training

DUPLICATION OF BENEFITS : Identical or overlapping coverage of same covered under two or more health insurance plans; usually result of contracts with different insurance companies, service providers, or prepayment plans referred to as multiple coverage

DWELLING PROPERTY 1 : Property cover insuring the dwelling at the actual cash value, other structures and personal property at fair rental value and other kinds of coverages; provides protection against limited number of risks

DWELLING PROPERTY 2 : Property insurance insuring dwelling and other structures at their replacement costs; adds additional protection covering more risks when compared to Dwelling Property 1

DWELLING PROPERTY 3 : Kind of property plan that covers the dwelling and other structures from direct physical damage from any kind of risk except those that are excluded; personal property coverage is on the basis of named risks

DECLARATION PAGE : Page in the insurance contract listing the name of the company, its address, policyholder name, start and end dates of the coverage, and acutal covers provided within the contract, which includes amount and location

DIRECT OR HELD COVERED : Condition requiring the insured voyage be directly from one location to another; in case the travel is delayed en route or deviated from direct insured route insurance cover can be extended by payment of additional premium only when the insured person provides prompt notice on receiving such advice unless otherwise specified in the insurance contract

DISABILITY INSURANCE : Kind of health plan paying monthly income to the insured person when s/he is unable to work due to an accident or sickness

DISCLOSURE : Duty of the insured individual and his/her broker to provide the underwriter details on all material events prior to acceptance of the risks

DISCOVERY PERIOD : Time allowed by the insured post termination of specific bond and policy provisions for discovering that s/he has actually sustained any loss that has occurred during the period covered by the insurance contract

DUTY OF ASSURED CLAUSE : Appearing in the Institute Cargo Clauses printed for using with the MAR kind of insurance plan; directs the insured's attention, his brokers, etc. towards the duty for taking reasonable steps for averting or minimizing losses recoverable under the insurance policy; also for ensuring all rights against the carriers and others are adequately exercised and preserved; underwriters agree for reimbursing the insured for reasonable expenses incurred due to compliance with the clause known as "sue and labor" charges