Insurance Certificate Is Not An Negotiable Instrument

[shahriar]

dear friends,

i know an insurance certificate is not an negotiable instrument. then how can it be used in letter of credit operation?

regd

shahriar

[Md.zakir Hossen]

B/L is a quasi nego.inst and B/E is nego.instrument for that reason we can change the ownership by endorsing this instrument.
In case of Insurance documents is it necessary to change the ownership?

[shahriar]

zakir bhai,

then why does banks ask for to the order insurance document or endorsement to the order of issuing bank?

regd
shahriar

[Md.zakir Hossen]

I do not know.I hope some expert will clear the matter.

[iLC]

you need to understand the difference between negotiable and assignable document. by endorsing a insurance a certificate, you actually assign the benefit of insurance to some other person. this is not same as endorsement on the bill of lading which transfer the ownership of the cargo.

iLC