Glossary

Accidental death benefit
This option provides for the payment of an additional sum, which is generally equal to the sum insured in the basic policy. This can be availed in the event of death by accident.  
Accidental death insurance
This insurance provides for payment if the insured’s death occurs in an accident.  
Accrued interest
This is the interest that accumulates on the unpaid amount on the car loan.  
Additional Finance Charges
This is the penalty levied for delayed payment of installments.  
Agent
The person appointed by the insurer to work on behalf of the insurance company.  
Agreement of sale
This is the sale purchase agreement, which states that you are buying the car, the tenure of your loan, the rate of interest, the amount to be paid, and any other relevant information.  
Amortisation
The process used to calculate your monthly payment (EMI).  
Amount payable
This is the amount payable to the policy holder according to the terms of the insurance policy.  
Annual Percentage Rate (APR)
This is not the loan interest rate; the APR calculates the actual cost of the loan’s credit, and is represented by a percentage rate. APR includes the fees and charges paid to acquire the loan.  
Annually renewable term
This provides coverage for one year and allows you to renew the coverage for each year, without evidence of insurability.