Certificate Of Insurance
Overview
You almost never see your insurance policy. It sits in a drawer, thirty pages of clauses you will read only if something goes wrong. What you carry, show and produce is something much smaller: a single sheet called the certificate of insurance. When a police officer at a checkpoint in Lagos asks a driver to prove the car is insured, it is the certificate he wants to see, not the policy.
This lesson explains what a certificate of insurance is, why the law in some classes of business insists on one, and how the certificates used in motor, marine and employer's liability insurance each do a slightly different job. You will learn exactly what a motor certificate must show, why a Nigerian motorist may not drive without it, and how to tell a certificate apart from the policy it stands for: a distinction examiners test almost every year.
Objectives
- Define a certificate of insurance and explain its evidential purpose
- Describe the certificate used in motor insurance and state its statutory role
- Describe the certificates used in marine and in employer's liability insurance
- Distinguish the certificate of insurance from the policy document
Mind map
This topic is mapped out so you can see how the ideas connect.
Flashcards
Quick recall practice on the facts this topic is tested on.
Lesson Note
Sign Up to Continue
Create a free account to access all learning resources, practice questions, and track your progress.
Lesson Evaluation
Congratulations on completing the lesson on Certificate Of Insurance. Now that youve explored the key concepts and ideas, its time to put your knowledge to the test. This section offers a variety of practice questions designed to reinforce your understanding and help you gauge your grasp of the material.
You will encounter a mix of question types, including multiple-choice questions, short answer questions, and essay questions. Each question is thoughtfully crafted to assess different aspects of your knowledge and critical thinking skills.
Use this evaluation section as an opportunity to reinforce your understanding of the topic and to identify any areas where you may need additional study. Don't be discouraged by any challenges you encounter; instead, view them as opportunities for growth and improvement.
- A certificate of insurance is best described as: A. The full contract between insurer and insured B. Evidence that a contract of insurance exists and is in force C. A receipt for the premium paid D. A proposal form completed by the insured Answer: B
- Which document must a Nigerian motorist produce to a police officer on demand? A. The policy document B. The proposal form C. The certificate of insurance D. The premium receipt Answer: C
- Which of the following is NOT normally shown on a motor certificate of insurance? A. The registration mark of the vehicle B. The persons entitled to drive C. The full list of policy exceptions D. The date the cover expires Answer: C
- A certificate of marine insurance issued under an open cover is usually: A. Fixed to one shipment and cannot be passed on B. Transferable to a buyer by endorsement C. The same document as the ship's log D. Issued only after the goods are lost Answer: B
- An employer's liability certificate is typically: A. Kept secret from employees B. Displayed at the workplace as evidence of cover C. Handed to each customer D. Produced only to the police Answer: B
Sign Up to Continue
Create a free account to access all learning resources, practice questions, and track your progress.
Sign Up to Continue
Create a free account to access all learning resources, practice questions, and track your progress.
Recommended Books
Revision Questions
Wondering what past questions for this topic looks like? Here are a number of questions about Certificate Of Insurance from previous years
Question 1 Report
(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
- The name and address of the insured (policyholder).
- The registration number or particulars of the vehicle insured.
- The effective date and time from which the cover begins.
- The date of expiry of the insurance.
- The persons or classes of persons entitled to drive.
- The limitations as to use (for example social, domestic and pleasure purposes).
- The conditions under which the policyholder may drive other vehicles.
- 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
- It is a temporary document issued as evidence of insurance pending the preparation of the full policy or certificate.
- It is valid only for a short, limited period, usually about thirty days.
- It gives the insured immediate cover from the moment of issue.
- It can be cancelled or replaced once the formal policy document is issued, and it may be renewed if the policy is delayed.