Insurance Abbreviations & Codes

Date of Commencement

Start date of the insurance policy

Date of Last Premium

Date when the last premium was paid

Date of Maturity

Date when the policy matures

Date of Death

Date on which the life assured dies

Date when the policy term ends and benefits are payable

Sum Assured

Guaranteed amount payable on death/maturity

Proposer/Policyholder Address

The address of the person who owns the policy

Life Assured

The person whose life is insured

Date of Birth

Used for age calculation and underwriting

First Unpaid Premium

The first missed premium date

Last Unpaid Premium

The final unpaid premium before policy lapses

History of Premium Receipt

Record of paid premiums

Net Asset Value

Used in ULIPs for fund value calculation

Unit Linked Insurance Plan

A mix of insurance and investment

National Automated Clearing House

System for auto-debiting premiums from bank accounts

National Electronic Funds Transfer

For direct credit of claim/maturity to policyholder's account

Electronic Clearing System

Used for auto payment of premiums

Third Party Administrator

Handles claims in health insurance

Goods and Services Tax

Tax levied on insurance premiums

Insurance Regulatory and Development Authority of India

Regulatory body for insurance in India

Tax Deducted at Source

Tax deducted on certain payouts like commissions or maturity benefits

Know Your Customer

Verification process of identity and address

Permanent Account Number

Used for tax and financial transactions

Guaranteed Surrender Value

The minimum surrender value the insurer must pay, fixed as a percentage of premiums paid

Special Surrender Value

A discretionary surrender value that may be higher than the GSV, based on accrued bonuses

Waiver of Premium

A rider that waives future premiums if the policyholder is disabled or diagnosed with a critical illness

Accidental Death Benefit

An additional payout if death occurs due to an accident

Unique Identification Number

The IRDAI-issued number that uniquely identifies an approved insurance product

Central KYC Registry

A centralized system that stores a customer's KYC records for reuse across financial institutions

Premium Waiver Benefit

Accidental Benefit

Double Accident Benefit

Critical Illness Benefit

Group Term Insurance

Surrender Value

Face Value

Loan Available

Revival of Policy Receipt

Branch Code

Agent

Development Officer

Simple Reversionary Bonus

Annual bonus declared as a percentage of the sum assured, added to the policy each year

Final Additional Bonus

A one-time bonus paid on maturity or death, on top of accumulated reversionary bonuses

Premium Paying Term

The number of years over which premiums must be paid, which may be shorter than the policy term

Policy Term

The total duration for which the policy remains in force

SBI Life Insurance

Private life insurance company

HDFC Life Insurance

Private life insurance company

ICICI Prudential Life Insurance

Private life insurance company

Max Life Insurance

Private life insurance company

Bajaj Allianz Life Insurance

Private life insurance company

Tata AIA Life Insurance

Private life insurance company

The window after a missed premium due date — typically 15 or 30 days — during which the policy stays active and the premium can still be paid without penalty

A window (commonly 15 or 30 days) after receiving the policy document during which the policyholder can review and return the policy for a refund if unsatisfied

A reduced sum assured a policy converts to if premiums stop after a minimum number of years, instead of lapsing entirely

Naming a person to receive the policy proceeds on the life assured's death — the nominee acts as a trustee for the legal heirs unless also a beneficial owner

Legally transferring the ownership rights of a policy to another person or entity, often used when a policy is pledged for a loan

An optional add-on benefit attached to a base policy for extra premium, such as critical illness or accidental death cover

When a policy loses its benefits because a premium wasn't paid even after the grace period

Reinstating a lapsed policy by paying overdue premiums plus interest, usually within a specified revival period

Insured Declared Value

In motor insurance, the current market value of the vehicle — the maximum amount payable in case of total loss or theft

No Claim Bonus

A discount on motor or health premium for each claim-free year, which resets if a claim is made

A health insurance claim settled directly between the insurer and a network hospital, without the policyholder paying upfront

A defined period after policy start during which certain health conditions or claims are not covered

A single health insurance sum assured shared across all covered family members, rather than a separate cover for each