Table of Contents
Introduction of Insured Definition
An ‘Insured Definition’ refers to the signing of an insurance contract between an individual, the insured object or living thing and the insurer.
The person or object entitled to an insured definition will be recompensed for the loss caused to the insured object or living thing by an insurer.
In Law, insurer is the man who signs the definition of insurance with an individual concerning either someone life, property or health. The insurer is also responsible for the compensation if in case the thing which is insured goes through a loss.
However, since there are three possible definitions of insurance, each of these have a different compensation of loss if the thing which is insured is damaged. That is, in each case the insurer will be responsible for a distinct kind of remuneration depending on the kind of loss and the thing which has went through it.
Insured Definition Of Life or Life Insurance
In case of an insured contract of life or life insurance, a contract is signed between an individual and the insurer (also called the assurer) in regards with the life of someone.
If the particular insured person becomes a victim of an unfortunate event causing his or her death or a terminal or a critical illness is caused guaranteeing that the victim will not survive for a long period.
In such a case, the insurance contract signed between the insurer and the individual who can also be in some cases the insured person himself aims to provide benefits by giving a sum of money to his or her family on the cause of an unfavorable event with the insured person which once again can be death or a serious illness leading to the victim’s death.
A large amount of sum is paid to the victim’s family and funeral charges are also covered in some cases.
Insured Definition Of Property of an Individual
If the insured definition is of the property of an individual, then the insurer or assurer is responsible to provide benefits to the owner of insured property in case it goes through a damage caused by a natural disaster such as lightning, earthquake or explosion etc.
The applied condition in the insured definition includes that the damage done to the insured property must not be caused by the owner or his or her family.
The benefits are only applicable to be received if the property has been damaged or disappeared by someone else such as a thief.
Insured Definition On Health
Last but not least, in case of a signing of insured definition on the health of someone, the insurer is responsible for providing the charges that cover the treatment of the person who is having a weak health.
However, there can be two possible ways of receiving advantages through an insured definition of health. One includes that the person who is responsible for signing the insurance contract himself pays for the health charges of the insured victim and then later is compensated for the money paid or second if the health charges are completely taken under the responsibility of the insurer.
In both cases, the one who signed the definition will not be paying for the health charges.
See Further for Insurance Terms