Insurance terms and definition

Insurance terms and definition

Insurance terms

Insurance Application Form
is a form to apply for an insurance policy issued by an insurance company. The policy owner has an obligation to declare fully, honestly in the application form. Application forms an integrated part of the life insurance policy.
Policy owner
  • An individual who is resident in Vietnam,at least 18 years old at the time the policy takes effect and is sufficient for covering the civil obligations; or  
  •  An organization which is legally established and operated in Vietnam. 
Policy owner must have insurable benefit with Life Assured and have responsibility to declare, sign on Insurance Application form and pay premium
Life Assured
An individual who is resident in Vietnam, accepted to be insured by Insurance Company in accordance with the policy.
Beneficiary
An individual or entity assigned by Policy buyer to receive policy benefit based on provisions of the policy.
Insurable benefit

means the relationship between Policy owner and Life Assured, in which Life Assured's risks will cause financial and menthal loss to Policy owner.

Policy owner has insurable benefit with the following people :

  • Policy owner;
  • Policy onwer's legal spouse, parent;
  • Policy onwer's siblings, legal guardian or person who has nurtured relations;
  • Policy owner's direct decedants
  • Other if policy owner bears a financial loss due to Life Assured's death.
Premium
an amount of money periodically paid by Policy owner to Insurance company to be insured in insurance term and with the method as agreed between parties in policy.
Provisional Premium
an amount of money that Policy owner submit with Insurance Application form.
Sum Assured
an amount of money used as the basis to define the insurance benefit to be paid according to Terms and Conditions of the policy. Sum Assureed is selected by Policy Owner in accordance with regulations of Insurance company and written in Insurance Application Form and Life Insurance Certificate.
Policy Anniversary Date
means the same date each year as the date that the Policy initially takes in force within insurance term.
Term and Condition
is the legal document approved by Ministry of Finance, listing the details rights and obligations of Policyholder and Insurer. Terms and Condition is an integrated part of the Life Insurance Policy.