The insurance contract is said to be a matter of solicitation . This conventionally means that the buyer of insurance has asked for the covers and the insurer has given it to him,. The
agent is seen as a an insurance advisor, advising the insured on
the right type of insurance he requires
for his protections . In the Chinese
market, insurance solicitor is the term
used for employees who procure market,
insurance business for the insurer implying that the insurers is soliciting the business
. In actual practice, solicitation
covers the communications process before
the insurance contract is entered into , a and implies the accountability of the insured and the insurer to the contract that has come
into effect. This process can be broken up as follows., 1. The
insured and the insurer or its his representative have been introduced to each other. 2. The insured’s need for risk management has been conveyed to the insurer., 3. The
insurer has explained the
insurance products and its benefits
to the insured and, . 4. Before
entering into the contract both parties
have ( especially the insured has) arrived at a reasonable clarity on the scope and reach of the
contract making them accountable to whatever they are doing.
Often this process involves a dialogue
or a series of dialogue and
reading of literature about the
insurance products to enable the
insured to understand the product. Till
this time, the communications is
mostly verbal. Once the insured product
decides to purchases the insurance, he has to formally offer his risk
to the insurers for insurance cover,. From this point onwards there are a
number of forms that are used by
the insurance with some variations as regards
the contents and compositing ,
depending on the market traditions and the regulatory requirements .
FORMS
RELATING TO THE CONTRACT OF INSURANCE PURPOSE AND CONSTITUENTS: Forms are important for reducing ambiguity in the complex
insurance market. Different types
of insurances , different kinds of covers
within each type, different terms and conditions relating to the covers,
and policy to policy differences
make insurance contractors complex. Insurances contacts touch people from all walks to life the same
type of the cover is given to cover the needs of different industries, and contractors sometimes needs to be honoured across different countries. From a policy holder protections
point of view many of the insured may not be able to understand the terms and
conditions of the documents completely.
When a claim is not paid , he would feel
that the he was given a raw deal as the he did not understand the fine print
in the policy. It is also possible that some insurers resort to abortive policy wordings to
deprive the insured of some types of
claims. Unless the contents are
standardized there would be total chaps and everyone would feel that the insurers,
who has drafted
the forms, has cheated the insured. It
is a therefore important, for the insurers
that the forms are transport and
trusted as clean documents.
Transparency and clarity a can be a achieved
only when the people who deal with the insurers everyone in the insurance industry , and the courts are clear
regarding the terminologies used in the forms, contextual meaning of the constituents of the forms and the purpose that a form
serves. Standardization of forms and
term is to ensure that in the insurance
market and in all insurance
transactions. all speak the same language
and all understand the same meaning that is a conveyed . The purpose , contents and importance of some of the terms are discussed below.