(a)List seven contents of a certificate of insurance. (b)State four characteristics of a cover note.

Answer Details

(a) Seven contents of a certificate of insurance

1. The name and address of the insured (policyholder).
2. The registration number or particulars of the vehicle insured.
3. The effective date and time from which the cover begins.
4. The date of expiry of the insurance.
5. The persons or classes of persons entitled to drive.
6. The limitations as to use (for example social, domestic and pleasure purposes).
7. The conditions under which the policyholder may drive other vehicles.
8. A statement that the policy satisfies the requirements of the relevant Road Traffic law, with the insurer's name and signature.

(b) Four characteristics of a cover note

1. It is a temporary document issued as evidence of insurance pending the preparation of the full policy or certificate.
2. It is valid only for a short, limited period, usually about thirty days.
3. It gives the insured immediate cover from the moment of issue.
4. It can be cancelled or replaced once the formal policy document is issued, and it may be renewed if the policy is delayed.