Mataracy
VIP Contributor
This is the document drafted by the insurer and which will seek answers to the material aspect of the risk proposed for insurance. As far back as the promulgation of Decree No 80 of 1991 and the insurance Act 2003, only the questions in the proposal form must be supplied with answers. Any question not specifically asked for by the insurer is termed not to be material to the insurer. Hence if a particular information is important or material to the insurer, questions that will elicit such information must be asked for in the proposal form. Proposal form contain questions that will information about the subject matter of insurance.
FUNCTIONS OF THE PROPOSAL FORM
The functions of the proposal form are many:
(1) It is a record of information which is necessary to the underwriter in assessing the nature of the risk being proposed for insurance.
(2) It forms the basis of the contract. At the foot of every proposal form there is always a declaration that the proposal form was the basis of the contract and the insured warranted the truth of the answers by appending his signature.
(3) It is a form of advertisement. Some proposal firms are designed in such a way that potential insured are enticed yo buy the policy of the company.
(4) Some proposal firms also describe the cover available. This enables the proposer to select the cover that best sweet his need without wasting time.
(5) The information revealed serves as a basis for premium quotation.
FUNCTIONS OF THE PROPOSAL FORM
The functions of the proposal form are many:
(1) It is a record of information which is necessary to the underwriter in assessing the nature of the risk being proposed for insurance.
(2) It forms the basis of the contract. At the foot of every proposal form there is always a declaration that the proposal form was the basis of the contract and the insured warranted the truth of the answers by appending his signature.
(3) It is a form of advertisement. Some proposal firms are designed in such a way that potential insured are enticed yo buy the policy of the company.
(4) Some proposal firms also describe the cover available. This enables the proposer to select the cover that best sweet his need without wasting time.
(5) The information revealed serves as a basis for premium quotation.
