What do the terms AC1 and AC3 mean?

AC-1 - This category applies to all AC loads where the power factor is more than 0.95. These are
primarily non-inductive or slightly inductive loads, such as heating. Breaking the arc remains
easy with minimal arcing and contact wear.

AC-3 - This category applies to squirrel cage motors with breaking during normal running of the
motor.
On closing, the contactor makes the inrush current, which is about 5 to 7 times the rated full load
current of the motor.
On opening, the contactor breaks the rated full load current of the motor.