Chap 7 -_insurance_documents
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This document discusses various insurance documents and forms used in the insurance process. It describes the purpose and contents of key documents like proposal forms, cover notes, certificates of insurance, policy forms, endorsements, renewal notices, claim forms, and discharge letters. Proposal forms are used to gather risk information and form the basis of the insurance contract. Cover notes provide temporary coverage until the full policy is issued. Policy forms contain the terms and conditions of the insurance agreement. Endorsements are used to modify policy terms, and discharge letters confirm that claims have been fully settled.
Chap 7 -_insurance_documents
- 2. Course Learning Outcomes Distinguish clearly the various principles in insurance related aspects P5125/Documentation/Haniza2
- 3. P5125/Documentation/Haniza3 PROPOSAL FORM An insurance contract is effected when there is an offer an acceptance Offer is made through the completion of proposal form and duly signed by the proposer
- 4. P5125/Documentation/Haniza4 The usefulness of proposal form To assist the insurer in gathering information required to assess the risk proposed To enable the insurer to consider application speedily and accurately
- 5. P5125/Documentation/Haniza5 The structure of proposal form Requirements of Insurance Act 1996 Questions of general nature - Proposer’s name and address - Risk address - Proposer’s occupation Previous and present insurance - loss experience - sum insured - subject matter Insurance related questions - questions which are specific to the type of insurance Declaration - requires the proposer to warrant the answers are true; the information is complete; agree the proposal forms the basis of contract; accept the usual form of policy for that class of business Signature - the proposer should always sign the proposal form as it represents the offer in the contract
- 6. P5125/Documentation/Haniza6 COVER NOTE Evidence of protection for a temporary period of time It provides provisional cover which the insurer reserving the rights to withdraw the cover Provides usual coverage as in a standard policy; the contract is subject to tariff warranties and special clauses
- 7. P5125/Documentation/Haniza7 The contents Name and address of the insured Time and date of commencement of cover Period of insurance Description of risk covered Sum insured Rate and premium Any special terms Cover note serial number Date of issue Signature of the authorised signatory Terms of cancellation Statement to the effect
- 8. CERTIFICATE OF INSURANCE Normally issued when insurance is made compulsory (motor insurance) It certifies that the insurance is issued by an authorized insurer As an evidence of insurance to police and motor vehicle’s registration authority P5125/Documentation/Haniza8
- 9. POLICY FORMS Is a document drafted by an insurer Is not a contract but as a written evidence Need to be stamped Issued as a scheduled type P5125/Documentation/Haniza9
- 10. The contents Heading : full name and address of the insurer Preamble/recital clause : introduces the parties to the contract Operative/insurance clause : specifies the perils insured and the circumstances the insurer will become responsible Exclusions : restrictions on the scope of insurance P5125/Documentation/Haniza10
- 11. The contents The schedule : information applicable to a contract – insured’s name and address, premium, policy no., date of issue, risk covered, period of insurance Attestation/signature clause : signature of an authorized official of the insurer Conditions : regulates the contract – express conditions, implied conditions P5125/Documentation/Haniza11
- 12. ENDORSEMENT Used to modify the terms and standard policy documents May be issued during the currency of the policy to record alterations Alterations of : - Variation in sum insured - Change of insurable interest by way of sale, mortgage - Extension of insurance to cover additional perils - Change in risk - Transfer of property to another location - Cancellation of insurance - Change in name and address P5125/Documentation/Haniza12
- 13. RENEWAL NOTICE Usually issued a month prior to the expiry, reminding the insured the existing policy will expire on a certain date All relevant information of the policy : insured’s name, policy no., expiry date, sum insured, premium Advise the insured to disclose all material alterations in the risk, to revise the sum insured ( market value) P5125/Documentation/Haniza13
- 14. CLAIM FORM Document used to gather information relevant to assess claim : insured’s identity, insured’s interest in the loss, circumstances and extent of loss It does not constitute admission of liability of the insurer P5125/Documentation/Haniza14
- 15. DISCHARGE LETTER When a claim payment is settled, insured’s is required to execute a discharge To avoid the possibility of any further claims on the loss The insured declared that he : - Has received a sum of money from the insurer - The money received is in full satisfaction of his claim The third party : - Has received a sum of money form the insurer - The money is paid on behalf of the insured - The money received is in full satisfaction Settlement not by cash : - repair, reinstate or replacement has been effected - The work was carried out to the satisfaction of the claimant P5125/Documentation/Haniza15