Insurance

Effecting Insurance Cover:

• Consider the kind of insurance required
• Contact insurance company either by broker or direct
• A prospectus is given which tells details about cover offered
• Complete proposal with utmost good faith
• Insurance company will make sure that the insured has insurable interest
• The premium is calculated.
• A cover note is issued that provides immediate cover
• Insurer will draw up the policy
• Excess is set up.the insured agrees to pay first portion of a loss.
• The insured should check the conditions and exclusions

Exclusion clauses show what is not included in the policy for which claim cannot be made

When a policy is about to lapse,renewal notice is sent.

Proposal form is application for insurance

Main purposes:

• Apply for insurance
• Basis of contract
• Means of advertising
• Request for quotation
• Documentary proof of information
• Legal offer to proposer
• Assess the risk

Key information:

• Details of insurer and insured
• Type of policy
• Nature of risk
• Insurance record of proposer
• Declaration of proposer and date