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DIFFENCIES BETWEEN INSURANCE POLICY AND INSURANCE CERTIFICATE

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Thu, 02/02/2012 - 05:39
elena c
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Joined: 01/23/2011
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Hello !

Can anyone tell me what are the diffrencies between Insurance Policy (IP) and Insurance Certificate (IC)  (exactly what contains IP and IC ) ?

 

Thank you ,

 

‹ accounting of documentary operations non-nominated bank makes the transfer as instructed ›
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Thu, 02/02/2012 - 07:26
#1
phill doran
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Joined: 02/10/2009
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one is the tent, the other is just one of the elphants

Hello Elena C

Very simply: the insurance policy (or more correctly the evidence of the insurance contract) contains the terms and conditions of the insurance contract, the basis of valuation and the parameters of its operation (any excess, geographic limits etc).

An insurance certificate is evidence of something covered under the insurance contract; it details the specific shipment and cross-references to the policy for the full terms of contract.

For example, you have an insurance contract for all of your cargo movement during a whole year – but for each specific event that the policy covers, you need a separate certificate evidencing cover for only that individual movement.

Yes?

Cheers

phill

“in the kingdom of the blind, what you see is what you get”

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Sun, 02/05/2012 - 09:12
#2
LB
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Joined: 09/02/2010
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insurance policy and certificate

and if a credit requires insurance certificate and later a bank or an applicant needs to use this insurance, as goods are lost or somthing, can bank or an applicant obtain insurance cover by certificate not policy?

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Sun, 02/05/2012 - 11:18
#3
phill doran
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Joined: 02/10/2009
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yes...

Hello LB
Yes, the certificate will allow the claim to be lodged.
The operation of the claim will reference back to the original policy which the party with whom the claim is lodged will have access to, from the underwriter.

Cheers

phill

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