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  • Non-Concurrent Policies

    Two or more policies which cover part only of the properties covered by other policies or which include properties not covered by others. However some property will be common to all.
  • Non- assignable Policy

    Policy which can not be assigned by the insured to another. Normally property and liability policies are not assignable.
  • Non Hazardous

    Refers to the physical/chemical properties of a matter of whatever state which present no undue exposure to the risk in question. Normally the premium rates will be the lowest for non-hazardous goods.
  • Non Fare paying passengers

    Provision in Motor insurance Commercial Vehicles policy to cover, in respect of commercial vehicles which are not authorised to carry fare paying passengers, persons connected with the specific journey allowed to travel on payment of additional premium
  • Non Destructive Testing

    Testing a component without actually destroying it or damaging it.
  • Non - Performing Assets

    This refers to the investments which are classified as Non-performing Assets (NPA) as per the accounting policy of the Company. 

    RBI gives detailed guidelines as to how and when an investment has to be treated as NPA which is with reference to the non-payment of the loan or debenture when it is due or non-payment of the interest on the loan or debenture when due. 

    The amount to be provided for in these cases is mentioned in the RBI guidelines and they are applicable to banks and financial institutions. Insurance companies may choose to follow these guidelines and provide for the same in the books of accounts.
  • Nominee

    Person, firm or institution whose name is mentioned in the accident insurance policies to be the recipient of the policy benefits in the event of death of the insured person arising out of an accident
  • No Known or Reported Loss

    This condition is sometimes stipulated by insurers/reinsurers who base their acceptance of a proposal for insurance/reinsurance subject to no known or reported loss to subject matter proposed for insurance/reinsurance as on the date of their acceptance.
  • No fault liability

    Means that the claimant is not required to prove that the death, injury or damage was due to any wrongful act, neglect or default of any person. 

    The relief provided under the following acts come under "No Fault Liability" 
    1. Public Liability Insurance Act 
    2. Motor Vehicle Act in connection with Road Accident Victims 
    3. Workmen’s Compensation Act
  • No Cure, No Pay

    1. A term used in connection with salvage operations of a vessel or cargo in distress. Salvage Award payable to the salvor will be on 'No cure No pay' basis in the sense he is entitled for the award only if and when the property is saved. 

     2. Recovery Agents pursuing recovery from the carriers, will handle the assignment given to them by the insurers on 'No cure No pay' basis in the sense that they will claim fee only when they recover some amount from the carriers. 
  • No Claim Refund

    Portion of premium agreed under the policy to be refunded to the insured in the event of no claim being reported or paid during the entire policy period. It is customary for the insurance companies to link this with the renewal of the policy, to ensure renewal with them without fail.
  • No Claim Bonus

    A reduction as a percentage in the manual or the prospectus premium at the time of renewal of the policy based on favourable claims experience in the previous year/s policy/ies for the same insured property against the same insured perils.
  • No Cession without Retention

    It is a condition in reinsurance contracts that the ceding company has to retain a portion of the risk and reinsure only the balance. Contract does not permit reinsurance for 100% of the risk. 

    This condition is mainly to safeguard reinsurers' interest to ensure that bad risks are not passed on to them fully.
  • New Business Clause

    A special clause added to the specification in a loss of profit (Consequential Loss) policy. When insurance is arranged for an entirely new business where no past performance figures exist. 

    This clause amends the definitions of rate of gross profit, annual turnover and standard turnover to expand the results from the commencement of the business to the date of damage to give proportionate figures for a complete twelve months. (See 'Gross Profit', 'Annual Turnover', 'Standard Turnover' and 'Specification')
  • Net Worth Of The Company

    This indicates the excess of assets over the liabilities of the Company, which in turn mean, the sum of the equity and preference capital and free reserves like general reserve of the Company.
  • Net tonnage

    Passenger and/or cargo accommodation expressed in a cubic measurement based on 100 cubic feet equals one net registered ton.
  • Net Retention

    Extent of capacity which an insurance company puts forth to retain the risk to its own account without any recourse to reinsurance.
  • Net Retained Line Clause

    A clause which is applicable to the excess of loss reinsurance cover, which refers to the protection offered by the cover only to the retained net line account of the reinsured. The net account of the reinsured may include the following: a) Normal Any One Risk Retention as per the reinsurance programme b) Unplaced share of the proportional treaty after retention. As per the net retained line clause the excess of loss cover will exclude the second item.
  • Net profit

    The Net trading profit excluding capital receipts and accretions and outlay chargeable to capital. It is arrived at after making provisions for all standing charges but prior to deduction of tax. The Loss of Profit policy provides cover for the loss of net profit and the insured standing charges during the period of interruption to production arising out of a damage in the insured premises by an insured peril.
  • Net Premium Written

    Total premium written by a ceding company minus premium ceded to the reinsurer.
  • Net Premium

    The portion of the premium which is designed to cover losses/ benefits payable under the policy, but not the various expenses.The portion of the premium retained by the office after deduction of expenses of management inclusive of the agent's commission.
  • Net Loss

    Residual loss to the insured after taking into account realisation from salvage and/or recoveries from third parties if any, but that such salvage and/or third party recoveries shall be taken net of any expenses incurred towards realisation of such recoveries.
  • Neon Sign Insurance

    Insurance coverage in respect of loss or damage to the neon sign installation by (a) accidental external means and (b) fire, lightning, external explosion and theft. 

    Insured's liability to third parties arising out of an accidental damage to the insured neon sign can also be covered under the policy.
  • Negotiable Instrument

    A document of title to property that may be transferred from one person to another in the course of business.
  • Negligence

    Failure to use the care that a reasonable and prudent person would have used under the same or similar circumstances. 

    National Consumer Disputes Redressal Commission (NCDRC): Complaint can be filed in NCDRC, by an aggrieved insured against an insurer where the value of the claim exceeds `20,00,000/- territorial jurisdiction of the commission is whole of India. Appeals against the orders of any of the State Consumer Disputes Redressal Commission also can be filed before the NCDRC.
  • Navigational Limits

    Limits prescribed by the port authorities and the Director General of Shipping with regard to the area of operation of the ships, which depend upon the size, nature and type of the vessels. Insurance policies also fix territorial limits for operation of the vessel depending upon its use.
  • Natural Resources

    Actual and potential forms of wealth supplied by nature, such as coal, oil, wood, water power and arable land.
  • Natural Losses

    Loss or damage caused by vagaries of nature, such as storm, hurricane, floods, lightning, earthquake etc.
  • Natural Gas

    Primarily methane and also some ethane with small quantities of entrained heavier fractions, such as propane, butane, etc. These and others, are readily condensed from the Natural Gas flow and are known as natural gas Liquids, as distinct from Liquid Natural Gas (L.N.G.), which is methane/ethane refrigerated under pressure to the liquid state.
  • Nationality of Vessel

    Nationality of the vessel is important to the insurer particularly if the vessel sails under a "Flag of Convenience", as he would not like extend cover for cargo shipped by such vessels and insert a warranty to that in the policy or the open cover. (See "Flag of Convenience")
  • Nationalisation

    Takeover of a private company's assets or operations by a government. The company may or may not be compensated for the loss of assets.
  • National Wealth

    Sum total of the value of all the capital and goods held within a nation.
  • Named Perils policy

    Policy in which the perils against which the coverage is granted is listed. Insurer will be liable for losses only when they are caused by any of the listed perils.
  • Named Insured

    Individual, firm, industry or an organization, in whose favor and specific name the policy is issued.