Finance Glossary
Plain-English definitions of the insurance, credit card, and tax terms that trip people up. Each term links to the guides where it matters most.
General
Deductible
The amount you pay out of pocket before the insurer pays the rest.
Claim Settlement Ratio (CSR)
The share of claims an insurer paid out of those it received.
Incurred Claim Ratio (ICR)
The total claim amount an insurer paid as a share of the premium it collected.
Solvency Ratio
A measure of an insurer's ability to pay long-term claims.
Health Insurance
Co-payment (Co-pay)
A fixed share of every health claim that you pay yourself.
Sum Insured
The maximum a health policy pays in a policy year.
Waiting Period
The time before certain conditions or benefits become claimable.
Restoration Benefit
Refills your sum insured if it runs out during the policy year.
Super Top-up
Extra health cover that starts above a set threshold.
Term Life Insurance
Car Insurance
Credit Cards
Credit Utilisation
The share of your credit limit you use, which affects your score.
APR (Annual Percentage Rate)
The yearly cost of borrowing on a card, charged when you revolve a balance.
Minimum Amount Due
The small minimum payment that keeps an account current but triggers interest.
Fuel Surcharge Waiver
A refund of the surcharge pumps add on fuel card transactions.
Tax Planning
Section 80C
A combined deduction limit covering EPF, PPF, ELSS, life premiums, and more.
Section 80D
A deduction for health insurance premiums, higher for senior-citizen parents.
HRA (House Rent Allowance)
A salary component that can be partly tax-exempt if you pay rent.
Presumptive Taxation
Declaring a fixed percentage of turnover as profit, with simpler books.