General insurance What is Cover Note?

[Mataracy]

Cover note is temporary document given to the insured as an evidence of contract between the insured and the underwriter. Because the policy document and certificate of insurance normally take time before they are ready, a cover note is usually given, especially in motor and marine policies, to show that there is a binding contract between the two parties. The cover note performs the same role as a policy but the validity period is limited to a maximum of 30 days within which the policy document is expected yo be ready and delivered to the insured.
The acceptance of the offer of a prospective insured by an insurer is not , as we have seen, necessary automatic. The insurer may require sometime to consider it for its possible acceptance . But at the time, the prospective insured may need immediate protection or cover of the risk which is the basis of making the proposal in the first place. Perhaps as a compromise solution the insurer may be willing yo issue a provisional or temporary policy called a cover note.
Cover note are used mainly in general insurance businesses, such as motor, fire and burglary, etc.

 

[btaliat]

Nice information. I am glad I learnt new thing today ok insurance policy. So let me ask a question that's not really clear to me on the issue of cover note. Let assume the insured person who has been given the cover note loses the cover note before the readiness of the normal certificate. What will happen?

 

[Mataracy]

Nice information. I am glad I learnt new thing today ok insurance policy. So let me ask a question that's not really clear to me on the issue of cover note. Let assume the insured person who has been given the cover note loses the cover note before the readiness of the normal certificate. What will happen?

Bravo,this is a good question. As I have said earlier that Cover Note is just a temporary document given to the insured as an evidence of contract between the insured and the underwriter (insurance company) .
Therefore, in a case where the Covet Note get lost before the issue of original certificate or if it is lost or destroyed, wholly or partially, an application has to be filed for the issuance of a duplicate policy document.
The insured need to take some steps by stating the reason for loss,likely date of lose policy details, such as date of issuance , policy number and whether or not the policy was assigned, need to be provided in the application
These are the steps to take whenever such occurrence or incident happen. Thanks

 

[btaliat]

Bravo,this is a good question. As I have said earlier that Cover Note is just a temporary document given to the insured as an evidence of contract between the insured and the underwriter (insurance company) .
Therefore, in a case where the Covet Note get lost before the issue of original certificate or if it is lost or destroyed, wholly or partially, an application has to be filed for the issuance of a duplicate policy document.
The insured need to take some steps by stating the reason for loss,likely date of lose policy details, such as date of issuance , policy number and whether or not the policy was assigned, need to be provided in the application
These are the steps to take whenever such occurrence or incident happen. Thanks

Thanks for taking your time to explain in details to me. To be honest, I even think the insurance company will charge or fine one for losing such an important document. This will serve as deterrent and a lesson that such an important document needs to be taken with care and safe always to prevent loss.

 

[Mika]

I do not know how it goes in other countries, but here in my country, you are given a receipt of your payment (that you paid as a premium). You will get your insurance policy documents in 2 days by producing this recept. Since all policies are subject to approval from the higher authorities in the company, it takes time.