What does the Capital Sum refer to in an insurance policy?

The Capital Sum in an insurance policy specifically refers to the amount that is paid out in the event of certain types of losses, such as accidental dismemberment or loss of sight. This sum is predetermined according to the terms set forth in the policy and serves as a benefit for specific covered events that result in a severe injury or loss.

This concept is particularly relevant in personal accident or health insurance policies where a policyholder may receive a fixed amount for specific, serious injuries. Understanding the Capital Sum helps insured individuals recognize the financial support available to them should they encounter a covered accident that results in significant physical impairment.