Insurance Proposal Definition An insurance proposal is a proposed idea or solution for a given company

that is looking to acquire insurance. This can be business insurance to protect the business against potential customer lawsuits or to provide insurance and health benefits for the employees working for the business. The proposal outlines the available insurance packages for the needs in question, along with implementation methods and a monthly budget for the company. Business executives may ask for several proposals to evaluate different insurance routes or options to find the best possible deal or package.

Using an Insurance Proposal Business executives use an insurance proposal to determine whether it

meets the standards of the business and its immediate needs. For instance, the business may be looking to provide health insurance for the employees. The health insurance package may need to provide specific benefits, such as dental coverage. The proposal may only offer hospital stays and partial dental coverage for a fixed price, so the business executives must determine if the proposal is the right choice based on the given information in the report.

Insurance Proposal Terms & Conditions Material Facts All material facts must be disclosed. Failure to do so could invalidate the policy. A material fact is one which is likely  to influence an insurer in the acceptance and assessment of the risk presentation. If you are in any doubt as to  whether a fact is material then it should be disclosed to the insurer. If any changes in circumstances arise during  the period of insurance cover please provide your insurer with details.   

A specimen copy of the policy wording is available on request. We recommend you keep a record (including copies  of letters) of all information provided to the insurer for your future reference. A copy of the completed application  form will be supplied on request within a period of three months after its completion.   

 

Choice of Law The appropriate law as set out below will apply unless you and the insurer agree otherwise: 

1.  The law applying in that part of the UK, Channel Islands or Isle of Man in which you normally live or (if applicable) the first named policyholder normally lives or 

2.  In the case of a business, the law applying to that part of the UK, Channel Islands or Isle of Man where it has its principal place of business or  

3.  Should neither of the above be applicable, the law of England and Wales will apply.   

 

If You Have a Complaint We hope that you will be very happy with the service that we provide. However, if for any reason you are unhappy  with it, we would like to hear from you. In the first instance, please write to:   

Enterprise Insurance Services (Swansea) Limited, 22,Tawe Business Village, Phoenix Way, Swansea Enterprise  Park, Llansamlet, Swansea, West Glamorgan SA7 9LA or telephone us on 01792 772778.    

Enterprise Insurance Services Limited and Aviva Insurance Limited (trading as Norwich Union) are covered by the  Financial Ombudsman Service. If you have complained to us and we have been unable to resolve your complaint,  you may be entitled to refer it to this independent body. Following the complaints procedure does not affect your  right to take legal action   

 

Telephone Call Recording For our joint protection telephone calls may be recorded and/or monitored   

 

Data Protection Act  For the purposes of the Data Protection Act 1998, the Data Controller in relation to any personal data you supply is  Enterprise Insurance Services (Swansea) Limited and Aviva Insurance Limited (trading as Norwich Union).   

 

Insurance Administration The insurer, it associated companies and agents, reinsurers and your intermediary, may use information you   supply for the purposes of insurance administration. It may be disclosed to regulatory bodies for the purposes of   monitoring and/or enforcing the insurers compliance with any regulatory rules/codes. Your information may also be  used for offering renewal, research and statistical purposes and crime prevention. It may be transferred to any  country, it may also be transferred to any country including countries outside the European Economic Area for any  of these purposes and for systems administration. In assessing any claims made, the insurer or its agents may  undertake  checks  against  publicly  available  information  (such  as  electoral  role,  county  court  judgements,  bankruptcy orders or repossessions). Information may also be shared with other insurers either directly or via those  acting for the insurer (such as loss adjusters or investigators).  

In the case of personal data, with limited exceptions, and on payment of the appropriate fee, you have the right to  access and if necessary rectify information held about you.   

 

Credit Searches and Accounting In assessing your application the insurer may search files made available to it by credit reference agencies who  may keep a record of that search. The insurer may also pass to credit reference agencies information it holds about  you and your payment record. Credit reference agencies share information with other organisations, enabling  applications for financial products to be assessed or to assist the tracing of debtors or to prevent fraud. 

The insurer may ask credit reference agencies to provide a credit scoring computation. Credit scoring uses a  number of factors to work out risks involved in any application. A score is given to each factor and a total score   obtained. Where automatic credit scoring computations are used by the insurer, acceptance or rejection of your   application will not depend only on the results of the credit scoring process.   

 

Sensitive Data In order to assess the terms of the insurance contract or administer claims that arise, the insurer may need to  collect data that the Data Protection Act defines as sensitive (such as medical history or criminal convictions). By  proceeding with this application you will signify your consent to such information being processed by the insurer or  its agents.

 

Marketing Aviva group and its agents may use your information to keep you informed by post, telephone, e-mail or other   means about products and services which may be of interest to you. Your information may also be disclosed and  used for these purposes after your policy has lapsed. If you do not wish your information to be used for these   purposes please write to Norwich Union, FREEPOST, Mailing Exclusion Team, PO Box 6412, Derby, DE1 1SB.   

 

Fraud Prevention and Detection In order to prevent and detect fraud we may at any time:   

Share information about you with other organisations and public bodies including the Police;  Undertake credit searches and additional fraud searches;  Check and/or file your details with fraud prevention agencies and databases, and if you give us

false or  inaccurate information and we suspect fraud, we will record this.We can supply on request further details of the databases we access or contribute to by contacting insurance  advisor.   

We and other organisations may also search these agencies and databases to:  

Help make decisions about the provision and administration of insurance, credit and related services for you  and members of your household; 

Trace debtors or beneficiaries, recover debt, prevent fraud and to manage your accounts or insurance policies; 

Check your identity to prevent money laundering, unless you furnish us with other satisfactory proof of identity.   

 

Claims History 

Under the conditions of your policy you must tell us about any Insurance related incidents (such as fire, water  damage, theft or an accident) whether or not they give rise to a claim. When you tell us about an incident we  will pass information relating to it to a database. 

We may search these databases when you apply for insurance, in the event of any incident or claim, or at time  of renewal to validate your claims history or that of any other person or property likely to be involved in the  policy or claim.   

You should show these notices to anyone who has an interest in the insurance under the policy.   

 

DECLARATION I/We understand and the contents of the completed application and I/We declare that the information given is, to  the best of my/our knowledge and belief correct and complete. I/We agree that the statements in the application   shall form the basis of the contract between the insurer and myself/ourselves and if the risk is accepted I/We  undertake to pay the premium when called upon to do so. I/We understand that my/our information may also be  disclosed to regulatory bodies for the purposes of monitoring and /or enforcing the insurers compliance with any  regulatory rules/codes. 

Fire InsuranceFire insurance is a form of property insurance which protects people from the costs incurred by fires. When a structure is covered by fire insurance, the insurance policy will pay out in the event that the structure is damaged or destroyed by fire. Some standard property insurancepolicies include fire insurance in their coverage, while in other cases, fire insurance may need to be purchased separately. Property owners should check with their insurance companies if they are not sure whether or not fire insurance is part of their policies, and if fire insurance is not included, it should be purchased.Depending on the terms of the policy, fire insurance may pay out the actual value of the property after the fire, or it may pay out the replacement value. In a replacement value policy, the structure will be replaced in the event of a fire, whether it has depreciated or appreciated: in other words, if homeowners purchase a home and the value increases, as long as it is covered by a replacement value policy, the insurance company will replace it. An actual cash value policy covers the structure, less depreciation. Most accounts come with coverage limits which may need to be adjusted as property values rise and fall.

Depending on the terms of the policy, the contents of the home as well as the structure may be covered in the event of a fire. Some policies also provide a living allowance which allows the victims of a fire to rent temporary housing while their homes are repaired. These clauses in an insurance policy typically cause the policy to become more expensive, since they will represent additional costs to the insurance company in the event of a fire. However, they can be extremely useful if a fire occurs.The cost of fire insurance varies widely. The use of fire alarms, sprinkler systems, and other safety measures can decrease the cost of the policy, and may even be required for some policies. Living in a region prone to wildfires will increase the cost of the insurance, as the risk of a payout is greatly increased. Because many people purchase fire insurance for their homes and businesses, insurance companies have a large risk pool, making fire insurance less expensive than specialized insurance like earthquake or flood insurance.When purchasing fire insurance, people should be aware that some types of fires may not be covered. For example, a fire caused by an earthquake might be excluded from a fire insurancepolicy, as might a fire caused by an act of God. It is important to read the terms of the policy carefully, and to ask for clarification from the insurance representative if the terms are not clear. If a policy does not appear to meet the need, it should be renegotiated until it is satisfactory.

Marine Insurance

A contract of marine insurance is an agreement whereby the insurer undertakes to indemnify the assured, in the manner and to the extent agreed, against losses incidental to marine adventure. There is a marine adventure when any insurable property is exposed to maritime perils i.e. perils consequent to navigation of the sea. The term 'perils of the sea' refers only to accidents or causalities of the sea, and does not include the ordinary action of the winds and waves. Besides, maritime perils include, fire, war perils, pirates, seizures and jettison, etc.

There are four types of marine insurance:-

Hull Insurance:- covers the insurance of the vessel and its equipment i.e. furniture and fittings, machinery, tools, fuel, etc. It is effected generally by the owner of the ship.

Cargo Insurance:- includes the cargo or goods contained in the ship and the personal belongings of the crew and passengers.

Freight Insurance:- provides protection against the loss of freight. In many cases, the owner of goods is bound to pay freight, under the terms of the contract, only when the goods are safely delivered at the port of destination. If the ship is lost on the way or the cargo is damaged or stolen, the shipping company loses the freight. Freight insurance is taken to guard against such risk.

Liability Insurance:- is one in which the insurer undertakes to indemnify against the loss which the insured may suffer on account of liability to a third party caused by collision of the ship and other similar hazards.

In a contract of marine insurance,the insured must have insurable interest in the subject matter insured at the time of the loss. Insurable interest is not required to be present at the time of taking the policy. Under marine insurance, the following persons are deemed to have insurable interest:-

The owner of the ship has an insurable interest in the ship.

The owner of the cargo has insurable interest in the cargo.

A creditor who has advanced money on the security of the ship or cargo has insurable interest to the extent of his loan.

The master and crew of the ship have insurable interest in respect of their wages.

If the subject matter of insurance is mortgaged, the mortgagor has insurable interest in the full value thereof, and the mortgagee has insurable interest in respect of any sum due to him.

A trustee holding any property in trust has insurable interest in such property.

In case of advance freight the person advancing the freight has an insurable interest in so far as such freight is repayable in case of loss.

The insured has an insurable interest in the charges of any insurance policy which he may take.

Types of Marine Insurance Policies:-

Voyage policy:- is a policy in which the subject matter is insured for a particular voyage irrespective of the time involved in it. In this case the risk attaches only when the ship starts on the voyage.

Time policy:- is a policy in which the subject matter is insured for a definite period of time. The ship may pursue any course it likes, the policy would cover all the risks from perils of the sea for the stated period of time. A time policy cannot be for a period exceeding one year, but it may contain a 'continuation clause'. The 'continuation clause' means that if the voyage is not completed within the specified period, the risk shall be covered until the voyage is completed, or till the arrival of the ship at the port of call.

Mixed policy:- is a combination of voyage and time policies and covers the risk during particular voyage for a specified period of time.

Valued policy:- is a policy in which the value of the subject matter insured is agreed upon between the insurer and the insured and it is specified in the policy itself.

Open or Un-valued policy:- is the policy in which the value of the subject matter insured is not specified. Subject to the limit of the sum assured, it leaves the value of the loss to be subsequently ascertained.

Floating policy:- is a policy which only mentions the amount for which the insurance is taken out and leaves the name of the ship(s) and other particulars to be defined by subsequent declarations. Such policies are very useful to merchants who regularly despatch goods through ships.

Wagering or Honour policy:- is a policy in which the assured has no insurable interest and the underwriter is prepared to dispense with the insurable interest. Such policies are also known as 'Policy Proof of Interest(P.P.I).