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.
Policy Wording
The full legal contract of a health plan, which decides every claim.
UIN (Unique Identification Number)
The IRDAI code that identifies one approved version of an insurance product.
Hospitalisation
Admission to hospital, usually for at least 24 consecutive hours.
Day Care Treatment
A procedure that once needed a 24-hour stay but is now done in less.
OPD Cover
Cover for doctor visits, tests and medicines without hospital admission.
AYUSH Treatment
Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy treatment.
Pre-hospitalisation Expenses
Medical costs in the days before an admission, such as tests and consultations.
Post-hospitalisation Expenses
Medical costs in the days after discharge, such as follow-ups and medicines.
Domiciliary Hospitalisation
Treatment at home for an illness that would normally need hospital care.
Pre-existing Disease (PED)
A condition diagnosed or treated in the 36 months before your policy started.
PED Waiting Period
How long a policy waits before covering pre-existing diseases.
Initial Waiting Period
The first 30 days of a new policy, when illness claims are not paid.
Specific Illness Waiting Period
A wait for listed illnesses and surgeries, such as cataract or hernia.
Room Rent Limit
A cap on the daily room charge a health policy will pay.
Proportionate Deduction
Cutting other hospital charges in line with an over-limit room.
Sub-limit
A cap on a specific treatment or expense inside your sum insured.
Cumulative Bonus
Extra sum insured you earn for claim-free years, at no extra premium.
Cashless Claim
The insurer pays a network hospital directly.
Reimbursement Claim
You pay the hospital and claim the money back from the insurer.
Network Hospital
A hospital tied up with your insurer or TPA for cashless treatment.
TPA (Third Party Administrator)
An IRDAI-licensed company that handles claims for an insurer.
Family Floater
One sum insured shared by everyone on the policy.
Portability
Moving your health policy to another insurer and keeping waiting-period credit.
Migration
Moving to another plan with the same insurer and keeping waiting-period credit.
Grace Period
Extra days after the due date to renew without losing continuity.
Aggregate Deductible
A yearly amount of claims you bear before the insurer starts paying.
Modern Treatments
Newer procedures such as robotic surgery and immunotherapy, often with limits.
Non-payable Items (Consumables)
Hospital items like gloves and kits that base plans often do not pay for.
Preventive Health Check-up
A yearly set of tests some plans include at no extra cost.
GST on Health Insurance
Individual and family floater health premiums carry no GST since 22 September 2025.
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.