Page 153 - Fire Insurance Ebook IC 57

The Insurance Times

inch to 40 feet. It is an useful adjunct to the report.
A well drawn plan helps the engineer to explain
clearly and the underwriter to understand clearly
and appreciate the various risk features

b. Premium- Once the proposal form is received with the
risk information report, if any, the rates, terms and
conditions etc are quoted to the proposer. Sec 64VB of
the Insurance Act states that no risk can be assumed
unless and until the full consideration or premium is
received in advance. The full policy is then issued after
receiving the premium

c. Cover Note - There may be a time lag between the
receipt of a proposal and the issue of a policy. The
insurers may require some additional information or
they may like to arrange for a inspection or survey.
During this interim period, the insurer issues a Cover
Note, or Acceptance cum Receipt, as an evidence of
insurance protection. The evidence may be asked by
Banks or Financial Institutions interested in the
insurance. The wordings of these documents though
vary among insurers.

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