Friday, 2 September 2016

Effecting insurance cover




When an individual or a business wishes to take out an insurance cover the following are the procedures:
1. Should first contact the insurance brokers and tell about the proposal
2. The insurance brokers make a slip and forward it to the underwriters
3. The underwriters scrutinize the slip and express their willingness to undertake the risks
4. Then the brokers give the proposal form to the person who wants to take insurance cover
5. The individuals or the businesses should furnish all the true information along with the necessary supporting documents with duly filled proposal form and forward it back to the brokers
6. Sometimes the brokers themselves assist the individual and the business in the process of documentation
7. After a thorough inspecting of the proposal form the underwriters ask the insured to pay the first premium
8. The underwriters prepare a provisional certificate confirming that the risk has duly been undertaken by the insurance company. The provisional certificate is known as cover note.

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