The Indian Motor Third Party Declined Risk Insurance Pool operates in the auto arena for the commercial vehicles to have (i) equitable and fair sharing by all insurers (ii) Simplicity to administer and (iii) To bring claims management efficiency. The policy of Declined Risk Insurance Pool applies to all commercial vehicles for standalone third party insurance (Act only insurance). The new plan provides an option to insurance companies to choose the liability they would bear totally meaning they would pay up 100% of the claims. When they see high claims, such as on trucks, they can dip into the pool, where every insurer contributes depending on its market share. The latest move by IRDAI will enable insurers to decide on whether they want to write the third party liabilities in a policy involving a Maruti Car, a Mercedes Benz, or a Tata Truck. They could choose to pay up claims in cities where accidents may be less frequent, while transferring to pool those coming from hinterland where there are more accidents. This, in insurance parlance, is called “Declined Risk Pool.” IRDAI fixes tariffs for third party motor insurance premiums to ensure that there is no supply side constraints, that is, vehicles considered high risk are not denied cover.
Insurance Encyclopedia
Decomposition
Slow oxidation. Burning without noticeable heat or light. Chemical change of a single substance into two or more different substances.
Decrease in coverage
Reduction of insurance benefits by the insurance company.
Decreasing Term
This is a type of term life insurance where the amount of the death benefit decreases while the premium remains the same for the term of the contract. It is often used to provide protection for a debt the insured has incurred such as a mortgage.For example, a 10-year, $100,000 decreasing term life policy would decrease in protection at $10,000 per year as a debt is paid down. At the end of the year 10, the value of the policy is zero and the coverage expires. (See Term Insurance).
Decreasing term (Life Insurance)
Coverage with a death benefit that declines to a zero balance throughout the term.
Decreasing term assurance
a variety of term assurance under which the sum assured decreases during the term of the policy, often in line with repayment of mortgage debt.
Decreasing term insurance
Type of term life insurance in which the amount of death benefit (coverage) decreases from the date the policy comes into force to the date the policy expires.
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UK: A term insurance under which the sum payable on death decreases each year by predetermined amounts. If the insured survives the whole of the policy term nothing is payable by the insurers who retain all premiums. See FAMILY INCOME BENEFITS; MORTGAGE PROTECTION.
Decreasing term insurance (Life Insurance)
A term life insurance policy where the premium stays the same but the death benefit decreases.
Decrement
Gradual diminution in the number of participants in a pension plan due to retirement, disability, death, or termination.
decubitus (DEC)
1. Recumbent or horizontal position, as lateral decubitus, lying on one side. 2. Decubitus ulcer (bedsore).