Policy Framework

16th August 2010

 

Part two

The Policy Framework

Modern insurance policies differ in their appearance but there is a basic general shape to all policies as shown in the table below.

Preamble
Insuring Clause/s
Exclusions
General Conditions
Claims Notifications Conditions
Definitions
Schedule
Endorsements

Insurance policies vary considerably in the way in which they are written, the terms and expressions used, and the interpretations that can be put upon them. It follows that some care should be taken in understanding these because they will be fundamental to the satisfactory negotiation and payment of a claim or the acceptance of a notification of a circumstance which might give rise to a claim.

To do this you must know where to look and what to look for. This guide sets out the principal features of each of the components of the policy wording, as shown above, explaining the purpose and making observations on points to take into consideration.

There is no single right or wrong way of manuscripting a policy wording. Nothing in this guidebook purports to suggest that there is only one way or a best way of ensuring the right cover. This is a job for you and your broker if applicable to work out between you. This guide’s purpose is to offer guidance on important points of negotiation.