Sum insured is the maximum pay-out amount that the Insurer is liable to pay to the insured in case of a claim and/or for the whole policy period. It works on the principle of indemnity. For e.g. the sum insured is ₹2 Lakh under health insurance, and if the insured gets hospitalised and his/her expenses turn out to be ₹3 Lakh, then the Insurer is liable to pay him/her ₹2 Lakh only.
Sum Insured
Posted: September 5, 2019
Maximum amount that can paid by the Insured as mentioned in the policy