[Solved] Which of the following best describes the concept of 'Sum Insured' in health insurance? - Ans: The maximum amount payable by the insurer for a claim | Insurance Awareness

Insurance Awareness - Health Insurance

Which of the following best describes the concept of 'Sum Insured' in health insurance?

AThe total premium paid by the insured

BThe fixed amount paid annually to the insurer

CThe amount paid as hospital bills by the insured

DThe maximum amount payable by the insurer for a claim

Step-by-Step Solution

Step 1: Define Sum Insured
Sum Insured is the maximum limit up to which the insurer will pay claims under the policy.
Step 2: Analyze other options
Premium is the payment made; hospital bills are expenses; fixed annual payment refers to premium, not sum insured.
Final Answer:
The maximum amount payable by the insurer for a claim → Option D
Quick Check:
Sum Insured caps the insurer's liability per policy term.

Quick Trick: Sum Insured = maximum claim amount.

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