16th August 2010
The preamble simply says that the insurers will, in return for the premium, pay the losses or claims made under the policy. Most policies have a distinct preamble although some modern policies do not. There are occasions when the preamble and the Insuring Clause are merged into one clause. Generally there is nothing contentious about a preamble clause although it is often the clause that incorporates the Proposal Form into the policy and makes it the basis of the contract.
The following are examples of preambles from a selection of modern policies
Example 1 is a typical, distinct Preamble.
Preamble – Example 1
Whereas the Assured have made to Underwriters a written Proposal bearing the date stated in the Schedule which shall be the basis of this contract and shall be considered as incorporated herein, and in consideration of the agreement to pay the Premium stated in the Schedule……….
Example 2 also describes the cover under the policy i.e., the Insuring Clause.
Preamble – Example 2
The Insured having submitted the Proposal to the Insurer which it is agreed shall be the basis of, and be incorporated into, this policy and in consideration of the Premium paid or to be paid by the Insured, the Insurer agrees to indemnify the Insured, subject to the terms, conditions, exclusions and limitations in this policy. ………….
The underlined section of this clause is the beginning of an Insuring Clause which then goes on to describe the cover in detail.
Take the trouble to read the Preamble and the Insuring clause together and ensure you understand them.
Read also the policy’s Definitions so that you understand the scope of the cover intended by the Insurer.