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ZIMSEC O Level Commerce Notes: Insurance: Documents used in Insurance

Documents used in insurance

  • The following documents are used in insurance:


  • Shows the types of risks that can be covered.
  • Shows the name of the insurance company.
  • Contains premium to be paid.
  • States compensation to be paid.

Proposal form

  • An application for insurance cover.
  • Forms the basis for an insurance contract.
  • Gives details of items to be insured.
  • Answered in utmost good faith.
  • Other details relevant to the items to be insured are also provided freely.
  • Asks questions about the items to be insured.
  • If the information given on them is false the effect is that the insurance policy/contract is rendered void.
  • The information provided on it enables the insurer to:
  • Assess details of the risk.
  • Decide whether or not to accept the risk.
  • Calculate fair premiums.
  • Determine whether or not there is insurable interest.

Cover note

  • It is a temporary insurance certificate.
  • Is issued while investigations are in progress pending issue of actual policy.
  • Is used when immediate cover is required e.g. vehicle insurance.
  • Is issued after payment of the first premium.
  • Contains terms and conditions of the insurance contract.
  • Is used to claim compensation in the event of a loss incurring.


  • Is issued after a cover note.
  • Is a contract of insurance.
  • It gives details of the risk covered.
  • States premium to be paid.
  • Contains terms and conditions that are applicable to the insurance contract.

Claim form

  • Is completed by the insured.
  • When claiming compensation.
  • Asks questions about:
  • The risk insured.
  • The loss incurred (details of the loss, date of the loss, and police report)
  • Policy number
  • Policy holder.
  • Cause of risk.
  • The information given in it allows the insurance companies assessors to:
  • Assess the exact cause of the loss.
  • Calculate the amount of compensation.
  • It is also completed in utmost good faith.

To access more topics go to the Commerce Notes page.