Insurance Documents are ones, issued by the issuer, certifying that the insurer and the insured have signed an insurance contract covering the goods to be transported. If the goods under the contract do incur damages or even losses in transit, the insured can lodge a claim against the documents.
Since insurance documents are the evidence of insurance contract between the insurer and the insured, they are mainly classified as the following four types:
This is a written legal contract between the insurer and the insured containing all terms and conditions of the agreement. It shows full details of the risks covered, and is also called fomal insurance documents.
Key elements of insurance policy are illustrated as follows:
An insurance certificate is a document issued to the insured certifying that the insurance has bee effected. It contains the same details as an insurance policy except that version of provisions is abbreviated. If a documentary credit requires an insurance policy, issuing bank will refuse an insurance certificate for payment.
Combined Certificate is further simplified. The insurer here lists the risks to be covered, the insured amount and the policy number on the invoice provided by the insured, and the other clauses are to be seen on the invoice.
Open Policy or Open Cover
This is a pre-contract concluded between the insurer and the insured by which the insurer offers insurance to the insured for the consignments he dispatches within a certain period of time.
Open Policy is only applicable to the imported goods from foreign countries to China. As soon as the carriage for the consignment under the Open Policy is made, it is under the insurance cover of the Open Policy in accordance with the terms listed on the Open Policy.
Country Commercial Guides(CCG)-Trade with China
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Export Credit Insurance
Export credit insurance (ECI) protects an exporter of products and services against the risk of non-payment by a foreign buyer. In other words, ECI significantly reduces the payment risks associated with doing business internationally by giving the exporter conditional assurance that payment will be made if the foreign buyer is unable to pay. Simply put, exporters can protect their foreign receivables against a variety of risks that could result in non-payment by foreign buyers.Source from trade.gov
Insurance Document Definition
The Respondent who has the Contract awarded to it and who fails to execute the Contract and furnish the required Bonds and Insurance Documents within the specified time shall, at the City’s option, forfeit the Proposal/Bid Bond/Security that accompanied the Proposal, and the Proposal/Bid Bond/Security shall be retained as liquidated damages by the City.Source from lawinsider.com