Policy meaning (what is it, concept and definition)

What is Policy:

The policy is a document with which certain insurance contracts are formalized or the accounting operations of a person or company are recorded.

The word, as such, comes from the Italian polizza , which in turn comes from the Byzantine Greek πόδειξις (apodeixis), which means 'proof' or 'proof'.

A policy can also be a stamp, more specifically it refers to one that the Spanish State uses to attach to certain official documents (such as certificates and instances), in order to satisfy the stamp tax that is required on them.

Insurance policy

An insurance policy is the legal document that serves as an instrument to certify the benefits that an insured accesses when they pay a premium for insurance coverage.

In the insurance policy, the terms by which the insurance agency is obliged to compensate for damage and pay financial compensation to a person when an eventuality foreseen in the contract is verified.

There are different types of insurance policy: fire, collision, accident, theft, transport, sickness, life, travel, etc.

Accounting policies

In accounting, an accounting policy is defined as any document in which all the accounting operations of a person or company are recorded. They can be of different types: daily, expenses or income.

Diary policy

The daily policy is one in which the movements or operations of a company are registered that, although they affect its economy, do not imply movement (of entry or exit) of money.

Expenditure policy

The expense policy is one that is used to record payment operations or money withdrawals from a company. It should be noted, however, that in the event of a cash outflow in the form of a check, the policy in question will be called a check policy.

Income policy

Income policies are all those in which the records of the money that enters the company are recorded, whether in cash, by check or transfer.