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.

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INSURANCE DOCUMENTS

2. Course Learning Outcomes
 Distinguish clearly the various principles in
insurance related aspects
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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

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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

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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

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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

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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
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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
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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
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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
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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
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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)
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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
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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
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