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Insurance certificate in negotiable form

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Thu, 08/05/2010 - 23:47
cristiand
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Joined: 08/10/2007
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Dear all,
I would like to have your opinions in the following matter:
1. L/C requires: Insurance certificate in duplicate, blank endorsed,.... in negotiable form.
As per ISBP 'duplicate' means at least one original and one copy
However, does ' in negotiable form' infers that both certificates must be presented as 'original' so that whichever of them can be negotiated?
.
On the other hand I am not so sure whether or not the wording 'negotiable form' means that the assured/beneficiary must be stated 'to the order of' (party endorsing insurance doc). I am not aware of the fact whether insurance docs follow the same rule as a B/L to be negotiable and therefore the wording ' to the order of' should be stated.
Thanks for sharing your opinion!
Regards
Cristian

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Sun, 08/08/2010 - 21:34
#1
MBHCMTFD
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Joined: 05/11/2010
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CAPACITY OF INSURANCE ISSUERS

Dear Sirs,

 

Pls give me some advices about this. 

 

 Under clause 28, UCP600 stated that: In insurance document, such as..(...).. must apprear to be issued and signed by an insurance company, an underwriter or their agent or their proxies.

I'm wondering how can we know that the issuer is "an insurance company" if their name don't include some words like "insurance, assurance,..".

 

For example: I got an insurance document which is issued by ABC company and their signature is "ABC company". Nothing on its face shows that ABC company is an insurance company. So, is this a discrepant doc.?

 

Thank you so much. 

 

MBHCMTFD 

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Fri, 08/06/2010 - 02:10
#2
Abrar
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Joined: 03/12/2009
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Insurance certificate in negotiable form

As the benefit can only be claimed once, and since the insurance document does not follow the B/L conventions in being required to be issued in a set of originals, presentation of 1 original and 1 copy would be compliant.

Insurance certificates/policies, where called for under LCs (i.e under CIF/CIP contracts), are required to be issued in a manner so that the right to receive payment and make a claim under it, passes from the the party arranging the insurance, to the party who is required to benefit from the insurance.  Therefore, if the document shows the assured as the beneficiary of the policy (not necessarily "to the order of..."),  a simple endorsement on the back of the document by the assured would render the document as negotiable.    

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Sun, 08/08/2010 - 05:42
#3
bob_exports
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Joined: 10/11/2009
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insurance certificate in negotiable form

Hi,

Just as B/Ls are issued in multiple originals to allow sending two or more
equally-valid sets of "original" documents by separate means, so too is
the need to do exactly the same with insurance certificates. In my experience almost invariably an insurance certificate is actually issued as a set of "original", "duplicate" (which has the same force as the original) and "copy". As regards negotiability, Abrar is perfectly correct, the certificate will indicate who the insuredparty is, typically the L/C beneficiary, who will then countersign the front and endorse the reverse of both the original and duplicate.

Yes, in duplicate according to UCP600 means you can present one original and a copy, but given the importance and relevance of the insurance certificate, I recommend you take "in duplicate" to mean two equally-valid countersigned and endorsed forms as the insurance industry intended.

Depending on what country you are in and the level of sophistication of insurers there, you may find that most insurers now allow access online to arrange a certificate under an existing policy, and they usually are downloaded as a multi-page pdf in this number of certs.

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