INSURANCE DOCUMENTS

There are various insurance documents used for different types of insurance, which are essential for all classes of insurance business. The object of insurance documents is give to the insurer full particulars of the risk against which insurance protection is desired. It also provides evidence of contract into which the parties have entered.

1. Proposal Forms
The company's printed proposal form is normally used for making an application for the required insurance cover. The proposal form contains questions designed to elicit all material information about the particular risk proposed for insurance. The number and nature of questions vary according to the particular class of insurance covered.
In Marine Cargo Insurance, Insurance document is not the practice to use a proposal form, although sometimes it is usual to obtain a questionnaire or a declaration form duly completed. Proposal forms are used for hull insurance.
In Fire Insurance, the practice varies among the companies, proposal forms are not generally used for large industrial risks where inspection of the risk is arranged before acceptance of the risk. Forms are used for simple risks. Proposal forms are used in respect of risks which are normally declined but have to be accommodated to retain the goodwill of the client.
In Miscellaneous Insurance, proposal forms are invariably required and they incorporate a declaration which extends the common law duty of good faith. Fire proposal forms may or may not have the declarations. The following items may be considered as common to all proposal forms.

1. Proposer's name in full
2. Proposer's address
3. Proposer's profession, occupation or business
4. Previous and present insurance
5. Loss experience
6. Sum insured
   
7. Other Section's - Signature, date, place etc.

2. Policy Forms
Policy forms, like proposal forms, vary within wide limits as between different classes of insurance but they have certain features in common. The policy is a document which provides evidence of the contact of insurance. This document has to be stamped in accordance with provisions of the Indian Stamp Act 1899. Where the insurance is governed by a Tariff or a Market agreement, the policy wording is prescribed therein itself and it is obligatory for insurers to use these wordings. In fire and miscellaneous insurance, the policy form used is on a scheduled basis i.e. all individual details relating to a particular insurance are grouped together in a schedule. Generally speaking policies are divisible into certain well defined sections and these are as follows:

1. Recital Clause or Preamble
2. Operative Clause
3. Attestation Clause
4. Conditions
5. Schedule

3. Cover Note
A cover note is a document issued in advance of the policy. It is issued when the policy cannot for some reason or the other, be issued straight away. Cover notes are issued when the negotiations for insurance are in progress and it is necessary to provide cover on a provisional basis or when the premises are being inspected for determining the actual rate applicable. Pending the preparation of the policy, the cover note is issued as evidence of protection for a temporary period of time and to prove that cover is in force. Here is a brief detail of cover.
In Marine Insurance, marine cover notes are normally issued when details required for the issue of policy such as name of the steamer, number of packages or exact value etc are not known. In Fire Insurance,, the operative clause of a fire cover note is issued in consideration of the proposer named in the schedule having proposed the effect of an insurance against fire for the period mentioned, on the usual terms and conditions of the company's policy. In Motor Vehicle Insurance, motor cover notes are to be issued in the form prescribed by the Motor Tariff.

4. Certificate of Insurance
In motor insurance, in addition to the policy, a certificate of insurance is required by the Motor Vehicle Act. 1988. This certificate provides evidence of insurance to the Police and Registration authorities. It contains the essential features of the cover including the terms and conditions. In Marine Insurance, certificate of insurance is issued to provide evidence of cover on shipments insured under cargo open cover or floating policies.

5. Endorsements
It is the practice of insurers to issue policies is a standard form, covering certain perils and excluding certain others. If it is intended, at the time of issuing the policy to modify the terms and conditions of the policy, it is done by setting out the alteration ia a memorandum which is attached to the policy and forms part of it. The memorandum is called an endorsement.