Insurance Documents
Here we will review what a contract of insurance implies and some of the paperwork that often supports it. (All insurance companies operate differently and might offer varing paperwork, these notes are for guidance only)
Contract of Insurance
When a customer agrees to buy Motor Insurance they enter into a contract. The English Law of contract is simply a Law of bargains.
There are three factors to consider when creating a contract for Insurance:
A contract is created when one party makes an offer (A Talk Once provider on behalf of the Insurance Company) and the other accepts (Customer). Today the only consideration accepted by Insurance Companies is Money.
Proposal Form
The proposal form is a contract between the client and the insurance company. It shows all the details the client has confirmed over the telephone when going on cover i.e. the clients name and address, who will drive on the policy, the type of vehicle, and what type of cover and use.
It also confirms the client’s and additional drivers full driving and medical history.
The proposal form is created by us with the information supplied by the client and is then forwarded to the client for them to fully check, sign and date to confirm the information supplied is correct.
If the Insurance Company find out at a later date that the client has i.e. a drink driving conviction, which was not originally disclosed on the proposal form, this is then classed as a break in contract and the Insurance Company are quite within their rights to cancel or void the clients policy.
Cover Notes
(These notes are for guidance only)
A Cover Note is a temporary Certificate issued by the insurance broker to cover the client until their official Certificate of Motor Insurance is received. This usually lasts for 30 days but should the broker not receive the Certificate within the 30 days a continuation cover note can be created.
This will cover the client for a further 30 days.
Cover notes are accepted by the post office for taxation of vehicles and by the police for proof of insurance cover, providing that the date on the cover note is applicable to the taxation date or the date they may have been stopped by the Police.
Photocopies are not accepted. A Cover note must never be backdated, it is against the law to back date cover. As you can appreciate, a client could have an accident and cause £1000 worth of damage to their vehicle and then ring our office the next day and ask for Insurance cover with effect from the previous day.
Cover can only be given from the present time or for the future.
Even with this said, you couldn’t backdate a ‘Docuprint’ Cover note anyway. These are the computer generated Cover notes that we use in our cover process.
Certificate of Insurance
The Certificate of Insurance is the client’s official legal document. It is required by law to be issued as evidence that there is an insurance policy in force covering the use of the vehicle on the road as per the Road Traffic Act.
The Certificate is usually divided into six sections describing the following:
1) The registration details of the vehicle insured
2) The name of the policyholder
3) The date of commencement
4) The date of expiry
5) The persons who are insured to drive this vehicle in accordance with the relevant policy
6) The use. What the insured vehicle may be used for in accordance with the terms of the policy
Policy Schedule
The Schedule forms part of the legal documentation and always accompanies the Certificate of Insurance.
The details outlined in the Schedule depend on the individual Insurance Company; there is no standard format, unlike the Certificate of Insurance.
It outlines most of the policy details, i.e. the clients name, address, inception and expiry date, policy extensions, the insurance premium, no claims bonus allowed, cover and driving details.
Policy Booklet
In line with the Certificate and the Schedule, the Insurance Company will also supply a policy booklet about your car insurance policy that will outline the Insurance Companies Terms and Conditions, benefits and reference information indicated by the policyholder’s Schedule.
It might not sound too interesting but as with all official documentation it really should be read and understood.