What defines the amount paid for a loss due to dismemberment in insurance terms?

In insurance terms, the amount paid for a loss due to dismemberment is defined as the capital sum. This term refers specifically to the fixed benefit that is paid out when an individual suffers from a qualifying loss, such as the loss of a limb or a similar significant bodily injury, as outlined in a dismemberment policy or rider.

The capital sum is predetermined and set forth in the policy details, allowing insured individuals to understand the financial compensation associated with specific types of dismemberment. This benefit is distinct from other types of payouts, such as the death benefit, which is typically related to the passing of the insured individual, or an insuring sum, which generally describes the total coverage amount provided by a policy.

Understanding the functions and roles of these terms is crucial for comprehending how insurance contracts specify benefits and how policyholders can expect to be compensated in the event of certain types of losses.