Short notes on the Procedure to Effect Marine Insurance

The proposer may approach to the insurer directly or through an agent or broker. Generally, the proposal is made through brokers because they are well known of the insurance practices. The broker prepares a slip where material information is recorded.

This slip is presented to the insurer who will signify his acceptance by initialing the slip and indicating the sum they are prepared to- accept. The risk may commence from the date of acceptance or from at any other date which is mutually agreed.

Sometimes, the insurer asks additional information from the broker. When the additional information called closing slip has been accepted by the insurer he may issue policy.

ADVERTISEMENTS:

Before issuing the policy, open cover is issued to the insured, which becomes inoperative as soon as policy is issued. The document containing the term of the contract is called policy.

The assured cannot lag ally make any claim over the underwriter if the loss occurs before a final policy is issued. The ‘open cover’ or ‘slip’ is not legally binding on the insurers.