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  • Contents of Insurance Policy/ Contract

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    hamza tariq
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    This document outlines the key components of an insurance policy contract, including payment terms, policy contents, exceptions, conditions, and the policy schedule. It discusses how premiums can be paid in a lump sum or installments. The main policy sections include the heading, preamble, signature clause, operating clause, exceptions, conditions, and policy schedule. Exceptions specify risks not covered, such as war, terrorism, and environmental pollution. Conditions outline the duties of the insured, including actions in the event of a claim. The policy schedule provides insured details like name, address, policy period, premium, and sum insured.

    Original Description:

    Insurance & Risk Management IRM Lecture

    Original Title

    IRM Lecture

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    This document outlines the key components of an insurance policy contract, including payment terms, policy contents, exceptions, conditions, and the policy schedule. It discusses how premiums can be paid in a lump sum or installments. The main policy sections include the heading, preamble, signature clause, operating clause, exceptions, conditions, and policy schedule. Exceptions specify risks not covered, such as war, terrorism, and environmental pollution. Conditions outline the duties of the insured, including actions in the event of a claim. The policy schedule provides insured details like name, address, policy period, premium, and sum insured.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views2 pages

    Contents of Insurance Policy/ Contract

    Uploaded by

    hamza tariq
    This document outlines the key components of an insurance policy contract, including payment terms, policy contents, exceptions, conditions, and the policy schedule. It discusses how premiums can be paid in a lump sum or installments. The main policy sections include the heading, preamble, signature clause, operating clause, exceptions, conditions, and policy schedule. Exceptions specify risks not covered, such as war, terrorism, and environmental pollution. Conditions outline the duties of the insured, including actions in the event of a claim. The policy schedule provides insured details like name, address, policy period, premium, and sum insured.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Payment of Premium:

    Generally the premium is received by the insurer in the beginning of the


    contract. It is received
    1. In Lump Sum Amount
    2. In Instalment, which may be monthly, quarterly or semi-annually. The
    amount received in instalment is slightly high as compared to lump sum
    due to the factor of Return as Interest.

    Contents of Insurance Policy/ Contract:

    A.
    B.
    C.
    D.
    E.

    Heading: It includes
    a. Name of the insurer
    b. Address
    c. Company Logo
    Preamble: It refer to the contents for which both the parties have
    agreed.
    Signature Clause Pre-printed Signature of an official of the
    company
    Operating Clause: It states exactly what the insurer or
    underwriter is promising to do (promises of the insurer). It outline
    the actual cover provided by the policy.
    Exceptions: It includes those items for which coverage is not
    provided by the company.
    For Example:
    War
    Radioactive Contamination & Nuclear Explosive
    Terrorism
    Environmental Pollution
    Electronic Risk (Computer Virus etc.)
    Condition: It refer to the duties which must be observed &
    fulfilled by the insured.
    A. Action by the Insured in the event of claim.
    B. Fraud Action: This condition states that any benefit under the
    policy is forfeited if any claim is fraudulent or inflated or any
    destruction or damage caused by wilful act of the insured or
    anyone acting on behalf of the insured.
    C. Reasonable Precaution: It is the duty of insured to take
    reasonable care & precaution to minimize the risk of loss. An
    insured should not treat insurance cover as an excuse for
    carelessness or inactivity.
    Policy Schedule: This refer to insured specification as
    illustrated below:
    A. Insured Name
    B. Insured Address
    C. Policy Period
    D. Premium
    E. Detail of Subject Matter
    F. Sum Insured

    G. Policy Number
    H. Any Special reference

    Information & Facilities: This section contain complaint


    procedure & recovery of claim procedure.

    Assignment
    A. Explain what you understand by Terrorism.
    B. Explain in figures the total amount of losses suffered by American
    Economy due to 9/11 Terrorist Attack. Enlist Seperately different types of
    Insurers Losses/ Claims
    Aviation Losses
    Aviation Hull
    Life Insurance Losses
    Property Insurance Losses
    Worker Compensation Losses
    Business Interruption Losses
    Event Cancellation Losses
    C. On November 26, 2002 President George Bush signed the TERRORISM
    RISK INSURANCE, 2002.Write the main feature of the Act & State whether
    Terrorism Activities are insurable by Private Insurer or otherwise.

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