Commonly used terms in case of Insurance are:
1. Insurer who promises the insured to compensate for the risks agreed upon.
2. Insured who is assured by the Insurer to be compensated for losses.
3. Subject matter of Insurance is life or property.
4. Sum Assured is the maximum amount to be paid as compensation to the insured by the insurance in case of any event.
5. Premium is the amount paid in lump sum or in installment by the insured in exchange of promises to secure losses.
