The wikipedia page on the Jordan Curve Theorem (which roughly speaking proves, after significant effort, that the "inside" and "outside" of a Jordan curve is a well-defined notion) also defines what a Jordan curve is.
Your answer is correct; another way of saying the same thing is to say that $\gamma$ is a closed, simple curve.
The answer of paw88789 can be made rigourous if e.g. $\gamma \in C^1$ so that $\gamma$ has a well defined tangent vector $T=T(x)$, continuous as a function in $x \in \Omega$, and therefore by rotating 90º anti-clockwise, a well-defined normal $N=N(x)$. Then, if for every $ x \in \Omega = \gamma ([a,b])$, there exists $\epsilon_0 = \epsilon_0(x) >0$ such that for every $0<\epsilon<\epsilon_0$, $ x + \epsilon N(x)$ belongs to the "inside“ of the curve, we say that $\gamma$ (or $\Omega$, which are identified by an abuse of notation) is positively oriented.
The definition you give based on the index is equivalent to the definition above for $C^1$ functions, but has the advantage that the integral can be defined even for less regular curves. So it provides an extension of the definition of an orientation even to situations where a tangent vector cannot be specified.
response to comment,
Could you elaborate on how the index definition extends to non $C^1$ curves?
Well right off the bat its easy to extend the definition to piecewise $C^1$ curves. But also I believe you can do the following. (Essentially, you replace $\gamma$ by a good polygonal approximation and let Cauchy's theorem take the wheel.)
Let $\gamma \in C^0$ be contained in the domain $U$ of an analytic function $f$. By compactness, cover $\gamma$ with finitely many small enough balls $B_1,\dots ,B_N, B_{N+1}:=B_1$ such that
$$ \bigcup_{i=1}^N B_i \subset U,\\ 1\le i \le N \implies B_i \cap B_{i+1} \neq \emptyset.$$ whose union is contained in the domain $U$ of the integrand $f$. On each of these sets we have a local antiderivative $F_i$ of $f$. Pick an arbitrary point $x_i$ in each $B_i\cap B_{i+1}$, $x_{N+1} := x_1$, and define
$$ \int_{\gamma} f(z) dz:= \sum_{i=1}^N\Big( F_i(x_{i+1}) - F_i(x_i) \Big)$$
None of the choices made matter - the values $F_i(x_{i+1}) - F_i(x_i)$ are independent of the choice of the antiderivative, and therefore independent of $B_i$. You can change the points $x_i$, or the number of points, by Cauchy's Theorem for polygonal sets. So the integral is well-defined, and extends the integral for $C^1$ curves.