| All on-line car insurance is underwritten on the | | | | cover is included. |
| basis of information supplied on the website's | | | | 3. Attestation clause: authorising the policy by the |
| proposal form. The information forms the basis of | | | | signature of the underwriter or other senior |
| the contract and is often incorporated into it by | | | | official. |
| specific reference into what is called the recital | | | | 4. General exceptions: setting out the general |
| clause of a policy. | | | | exceptions to the cover provided. |
| The completed form is useful as a record of the | | | | 5. Conditions: listing express conditions in order to |
| risk and as a basis for statistics. Invariably it | | | | define or limit the contract (such as the procedure |
| contains a declaration warranting that all the | | | | to be followed in making a claim or altering the |
| answers given to the questions asked are true. | | | | contract. |
| The Car Insurance policy itself is evidence of the | | | | Car Insurance Policy wordings are often complex |
| insurance contract, although, it is not the contract | | | | and difficult for the layman to comprehend. |
| itself. | | | | Motor Insurers often issue with the policy a |
| However, as the policy describes the parties, the | | | | statement of cover in plain language, called either |
| car insurance cover, the consideration, the events | | | | the car insurance policy summary or key facts |
| leading to compensation, and any special | | | | document, to assist policyholders to understand |
| regulations and conditions applying to the contract, | | | | the insurance protection provided, but these |
| it is vitally important. | | | | summaries do not cover everything in the policy. |
| In the case of disagreement inevitably following an | | | | Some Car Insurers have, therefore, tried to |
| accident or a claim, the terms of the policy may | | | | simplify the wordings themselves. There are |
| be subject to interpretation by the courts. | | | | dangers in this area since the traditional wordings |
| The terms used to distinguish the sections of a | | | | have been tried and tested in the courts, whereas |
| motor insurance policy are known in the industry | | | | simplified translations are unproved and may |
| as follows: | | | | import areas of uncertainty as to the cover |
| 1. Recital clause: setting out the scope of the car | | | | provided. |
| insurance cover and specific exceptions. This may | | | | Nevertheless, the experiments are a welcome |
| be divided into sections if more than one type of | | | | sign that in the twenty first century motor |
| cover is included for example fully comprehensive | | | | insurance is not wedded to the past, but that in |
| and third party fire and theft. | | | | both principle and practice it is constantly |
| 2. Operative clause: setting out the scope of the | | | | developing to serve the driving community more |
| cover and specific exceptions. This may be | | | | effectively. |
| divided into sections if more than one type of | | | | |