The agreed amount payable to a policy holder when the event insured against occurs is?
Answer Details
The term you're looking for is "sum assured."
In insurance, the sum assured is the amount of money that an insurer agrees to pay to the policyholder in the event that the insured event occurs, such as death or damage to property. The sum assured is the maximum amount of money that the policyholder can receive from the insurer, and it is agreed upon at the time of taking out the insurance policy.
For example, if a person takes out a life insurance policy with a sum assured of $100,000 and they pass away, the insurer will pay the beneficiary of the policy $100,000. Similarly, if a person takes out a car insurance policy with a sum assured of $20,000 and their car is damaged beyond repair, the insurer will pay the policyholder up to $20,000 to cover the cost of the damage.
The sum assured is an important consideration for both the policyholder and the insurer, as it determines the level of coverage and the premium payable by the policyholder. The higher the sum assured, the higher the premium payable by the policyholder, as it represents a greater risk to the insurer.