RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

Who is the Insurer and Insured?

down-arrow
Who is the Insurer and Insured?
November 29, 2024

Table of Content

 

Insurance is an essential part of modern financial security. It is a legal Bound Contract agreement between two parties: the insurer and the insured that can be a Person or a Business. The relationship between them serves as the base for all insurance policies, including Health Insurance, Life Insurance, Property, Vehicle, and other Types of Coverage.

Noting the responsibilities of both the sides is critical for one who is entering into an insurance contract. It ensures that both parties can meet their commitments and profit from the arrangement.

Difference between Insurer and Insured

 An insurer is a firm or a party that guarantees financial protection for agreed-upon risks, whereas the insured party - whether a person, business, or organization - is the one who benefits from this protection when covered losses occur.

Who is the Insurer?

As discussed earlier, an insurer is a firm or entity that offers insurance coverage and bears financial risk in exchange for premium payments.  
For Instance-

When you get car insurance from XYZ Insurance Company, the company becomes the insurer and promises to pay for insured losses if you get into an accident. The insurer's primary responsibilities include:

  • Evaluating and accepting risks through underwriting
  • Collecting premiums from policyholders
  • Processing and paying valid claims
  • Complying with insurance regulations

Who is the insured?

The insured is the person or business that purchases insurance and receives protection against the risks specified in the policy. For example, when a homeowner purchases house insurance, they become the insured.

  • The insured may be an individual (e.g. in case of life or health insurance).
  • Purchase health or homeowners insurance for your family.
  • Commercial property and liability coverage for businesses.
  • Group insurance policies for many parties.

Consider Rahul, who purchases Term Life Insurance from HDFC Life. As the insured party, he is liable for:

  • Paying monthly premiums.
  • Provide correct information when applying for coverage.
  • Following policy requirements and procedures.
  • Prompt and honest claim reporting.

Key differences between insurer and insured

Several key distinctions distinguish the insurer-insured relationship:

  • Risk transfer: It involves transferring risk to an insurer in exchange for premium payments.
  • Financial Obligation: Though the insured pays set premiums, the insurer's potential payment responsibilities might be significantly larger.
  • Regulatory Requirements: Insurers are subject to stringent regulatory scrutiny, whereas the insured's duties are mostly contractual.     

To Sum Up

Whether you're opting for personal coverage Small and Medium Enterprises (SMEs) Insurance, understanding the roles and responsibilities of both the insured and the insurer is key. Knowing your duties as the insured helps streamline the claims process and minimizes the chance of the proposal being declined.

Both the insurer & the insured must act with transparency, disclosing all relevant details that could impact the contract.

At HDFC Life, we offer a wide range of insurance products Life, health, ULIPs, Savings and Pension Plan and more—at competitive premium rates. Explore our plan today to ensure you're protected when it matters most.

Related Articles  

 

ARN- ED/11/24/18031

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

LinkedIn profile
Reviewed By Reviewed By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

Who is the Insurer and Insured?

Who is the Insurer and Insured?

The essentials of insurance, including the roles of the insurer and insured, in this comprehensive guide. Learn how these relationships shape your financial security.

What Is Insurance?

Blue Chip Fund

Diversified Equity Mutual Funds

Diversified Equity Fund diversifies the investments across the stock market in a bid to maximize gains for investors. Click here to know meaning & benefits of diversified equity fund.

Diversified Equity Mutual Funds
What Is Insurance? Previous
Life Insurance - Buy Life Insurance Plans Online in 2020-21 from HDFC Life Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches