| Package policy | Third party liability and owner-driver insurance combined into a package policy for automobiles. |
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| PAID-UP INSURANCE | A life insurance policy on which all premiums have been paid but which have not yet matured. An example would be the limited payment life insurance policy for which the premium paying period is over. |
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| Paid-Up Policy | An insurance policy that requires no further premium payments. |
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| PARTICIPATING POLICY | A policy which shares in the divisible surplus or profits of the life insurance company. This share is often termed a bonus or dividend and it is added on to the sum assured which then increases. |
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| Participating policy | With-profits policy. |
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| Particpatory Notes | Participatory notes are contracts notes issued by FIIs to foreign investors. |
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| Particular average | In marine insurance, as opposed to general average. |
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| Particular risk | When only an individual is affected. |
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| Pension | Retirement benefit and is taxable |
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| Perpetuity | An annuity of infinite duration |
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| Perquisite | Any casual benefit attached to an office or position in addition to salary. |
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| PIO | People of Indian Origin |
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| POLICY LOAN | A loan taken by the policy owner from the insurer. The policy loan is used as a security for the loan. The policy loan is only granted if the policy is granted on all or part of the surrender value. |
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| POLICY PERIOD | The period of duration in which the policy is in force. |
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| Pooling of losses | Spreading of losses over the whole group of policyholders. |
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| Portfolio | (1) A group of investments managed or owned by an individual or organization. (2) All of the products offered by an insurance company. |
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| Power of attorney | An estate owner passes his authority to another person in a legal way. This is called power of attorney. General power of attorney assumes all powers to deal with the estate |
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| PPF | Public Provident Fund established for the benefit of general public. Amount accepted Rs. 500 - Rs. 70000/- and is tax exempt under section 80(c), repayable after 15 years |
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| Premium | The payment, or one of a series of payments, required by the insurer to put an insurance policy in force and keep it in force. |
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| PREMIUM NOTICE | A notice from an insurer to a policy owner that a premium payment is or will be due on a given date |
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| Present Value | The amount of money that must be invested on a certain day, sometimes called the valuation date, in order to accumulate to a specified amount at a later date. |
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| Previous Year & Assessment Year | Income in a F.Y. is taxed.in the next year. The F.Y. in which income was earned is called previous year and the immediately following F.Y. in which it is taxable is called Assessment year |
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| Price discovery | In futures market, assessment is made by taking a look at economic functions. A person having superior information makes an assessment and this helps in improving price discovery; this leads to a better allocation of resources. |
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| Price Earning Ratio | An approach to valuation under Return on Equity (ROE). Formula: Estimated value is equal to the estimated earnings per share multiplied by justified price-earning ratio. |
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| Price to Book Value ratio | Market price per share at time t divided by Book Value per share at time t |
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| Price to Sales Ratio | Calculated by dividing a companys current stock price by its revenue per share for the most recent 12 months. |
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| Primary market | New issuers sell new securities as opposed to secondary market where old securities are traded |
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| Principal | In an agreement, the main party who performs and fulfils the obligations in the contract. |
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| Pro-rata liability clause | In property insurance, if an insured person doesnt hold full value insurance, and must bear a part of the loss in the event of the loss. |
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| Provident Fund | A retiremet benefit scheme where both the employer and employee contribute towards the funds which falls into 3 categories: (a) statutory P.F. (b) recognised P.F. (c) un-recognised P.F. |
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| Proximate cause | Factor causing damage to property for which there is an unbroken chain of events between the occurrence of an insured peril and damage of the property. |
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| Pure premium | That portion of the insurance rate needed to pay losses and loss-adjustment expenses. |
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| Pure risk | A situation where there are only the possibilities of loss or gain. |
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