Declaration under an open cover

[picant]

Declaration under an open cover (insurance)
UCP 600, art. 28 a) indicate the insurance policy, the insurance certificate, the insurance certificate or an open policy declaration as an insurance document.

The insurance policy, in point d), can replace a certificate or a declaration but not vice versa. In 2014, a CDCS question stated that an insurance certificate request could be fulfilled by filing a declaration and vice versa. In my opinion we are in the presence of an error of interpretation, some insurance certificates contain the wording "we declare ..." but the document remains a certificate.

Documentary credits, like many international operations, represent transactions that can take place between very distant countries and with the presentation of documents that are valid only locally or for transactions between those countries, for which the rules can generally refer to documentation other than that usually presented.

But in the insurance field a declaration relating to an open policy is a usual document, which serves to inform the insurance company of the use of the agreed insurance ceiling, with a review of the premium if the coverage conditions were aggravated, within the limits also agreed. Insured transactions are however held covered but subject to premium review, e.g. If the ship is over X etc.

This declaration is therefore not issued by the insurance company but by the insured and certainly after the departure of the goods, so it cannot fall within the conditions set out in the aforementioned art. 28 of the UCP.

I would appreciate comments and if someone has this "declaration" also the forwarding of a copy: Thanks

references:
Old Man Suggestion,
Collyer Consulting FAQ,
Commerzbank Top @ doc issue,
Declaration under a marine open Cover -Zurich-AU.

[dinesh2476]

chief,

It will be injustice by prohibiting declaration as allowable presentation when we have provision for insurance policy and declaration. It is an industry practice that the insurance company pre-signed the insurance certificate/ declaration with their signature and expects the insured signature for validation and their consent on such information. the action of such cannot be ignored in insurance operations.

Thanks & Regards
Dinesh Kumar

[picant]

Hi Pal,

thank you for your answer. I read recently that during the preparation of UCP 500 It was decided to
include the declaration as it was normal that an exporter/shipper to obtain pre-segned certificates and/or declarations from insurance company towards insurance policy. My post required copy of said declaration as I never see one. Moreover reading some brochures issued by insurance company to illustrate their business
I found that "declaration" is something else. So my post was for people in any part of the world that may use this type of documents in the way described in UCP 600.
Thanks for further comments. Ciao