Page 65 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices

Notes In Marine Insurance, marine cover notes are normally issued when details required for the issue
of policy such as name of the steamer, number of packages or exact value etc. are not known. In
Fire Insurance, the operative clause of a fire cover note is issued in consideration of the proposer
named in the schedule having proposed the effect of an insurance against fire for the period
mentioned, on the usual terms and conditions of the company’s policy. In Motor Vehicle Insurance,
motor cover notes are to be issued in the form prescribed by the Motor Tariff.

Certificate of Insurance

A certificate of insurance is a document that is issued by an insurance company, at the request
and on behalf of, an insured policyholder. The document serves as proof of insurance coverage
to persons, companies or organizations that request the certificate. Generally speaking, there
are three major types of certificates of insurance.

Certificate of Car Insurance

A certificate of car insurance may be in the form of an insurance identification card (such as the
one you are required to keep in your vehicle) or the document may actually be full sized form
that has been issued by the car insurance company at the request of the policy holder for a
specific purpose.
A certificate of car insurance may be requested by a bank or lender that financed the purchase of
a vehicle in some circumstances. For example, when financing a vehicle, the lender will usually
require that full coverage insurance be maintained on the vehicle until the loan has been
completely paid off. In addition, the lender will usually be required that it be named an additional
insured party on the policy so that they can be paid in the event the vehicle is totalled in an
accident.
If the lender ever has reason to suspect that you are not maintaining adequate insurance coverage,
the company may request a certificate of car insurance. Most of the time, if the lender requests a
certificate of car insurance, it will not accept the insurance ID card carried inside the vehicle and
will require a signed document from the agent or insurance company.

Certificate of Liability Insurance

There are many situations when one or both companies involved in a business transaction or
relationship will require a certificate of liability insurance. For example, if you own a business
and need to lease a building or space from a landlord or rental management company, the renter
of the property may require that you supply them with a certificate of liability insurance. The
landlord of renter of the property may require this in order to be assured that they are protected
from liability in the event someone is injured while at your place of business.
Other times a certificate of liability insurance may be required when contractors or vendors
need to visit a client location and perform certain types of work. Many times the client organization
purchasing goods or services from the contractor or vendor will require a certificate of insurance.
This is due help protect the client organization in the event that the contractor vendor causes
damage or injury while on the premises of the client. It also helps to ensure that property of the
client is protected in the event it is damaged by the contractor vendor while working at the
client site.

Certificate of Workers Compensation Insurance

For many types of construction jobs or other large projects, there is usually a project management
company or general contractor responsible for the overall completion of the project. Most the

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