General insurance Structure of a Policy Document

Mataracy

VIP Contributor
The policy document is divided into various parts:
The Heading: This is where the name of the insurance company, its registered address and the title or the of the policy (e.g. fire, burglary etc) are shown.

The preamble or Recital Clause: this part contains the circumstanced in which the policy will operate. It states that the proposal shall be basis of the contract and that the payment of premium shall be the basis of the contract and that the payment of premium shall remain the precondition for operating policy.

The operative Clause : this give detail about the type of event insured against i.e. circumstances that will make the insure liable to pay claim under under the policy.

Exceptions: this section deals with circumstances that can lead to a loss but for which the insurer Will not be liable. They are called exceptions and exclusions.

Conditions:- conditions ate what the insured must do in order to make a claim under the policy. They contain the conditions precedent to liability.

After the conditions is the schedule which records the details of the particular contract. It gives the description of the subject matter of insurance like the name of insured, address, period of insurance, renewal date, first premium paid annual premium due, item description etc.
 

btaliat

VIP Contributor
Kudos to the poster for this. Insurance documents just like other investmens' documents must have all the details that the poster highlighted. Each section of these documents has its importance and must be filled with correct information to avoid discrepancy especially when the primary insured is no more and the insurance wants to be transferred.
 
Top