Insurance cover note is a report used to supply evidence of insurance if policy documents aren’t immediately available. it’s issued as a temporary cover during negotiation period pending finalization of the matter.

Since preparation of a lasting policy might take a moment and since pending issuance of the policy insurers might like to create further queries related to the danger or proposed insurance, it has changed into a common practice for insurers to issue a temporary cover during negotiation period pending finalization of the matter.

The cover may be provided with either with a letter or by way of a standard cover-note form. The cover is usually given for 15 days or 30 days and the time is mentioned on the document.

The issuance of this type of temporary cover does not put the insurers under an obligation to enter into a lasting contract.

It can also be indicated that when the insurers are to enter into a lasting contract, it could be according to insurers’standard kind of policy employed for that class.

The data that could usually appear on a cover note is;

Name, address and occupation of the insured.
Sum-insured and provisional premium.
Date and time of the commencement of cover.
Duration of cover,
Scope of cover, i.e., perils covered,
Description of the property or subject-matter covered.
Cancellation provision which supplies that either of the parties may cancel the cover by giving a published notice inside a prescribed time.
A record usually appears in the bottom of the cover note indicating that the insured is held covered according to usual terms and conditions of the business’s standard policy form employed for this class of business,
Signature and date of insurer.
The student should note that a motor cover note will contain some more information, as is necessary by law, such as for example,

(a) utilization of the automobile,

(b) registration quantity of the automobile and

(c) a certificate from the insurer to the consequence that the cover has been given relating with the provision of the Motor Vehicles Act, 1939.

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