Question

 Insurance policy and Insurance Certificate.

30 Oct 2021
Answer :
Word Count : 954

There are three types of cargo insurance documents available in the international maring cargo insurance market. These are insurance policy, insurance certificate and declaration under an open cover.

Declaration under an open cover is not used so frequently in daily practice compared to remaining two insurance document types. 

For this reason knowing details of insurance policy and insurance certificate is very important not only for exporters and importers but also other foreign trade participants.

Insurance Policy: Insurance policy is a legally binding written document, which is issued by insurance company underwriter to policy holder or insured assured.

Just like bills of lading (Bill of lading states terms and condition of the carria, as a transport document), insurance policies define the terms and conditions of the insurance contract and serves as a legal evidence of the insurance agreement.

International marine cargo insurance policies are generally issued subject to ICC Cargo clauses such as Institute Cargo Clauses (A), Institute Cargo Clauses (B) and Institute Cargo Clauses (C). 

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