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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

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?

zakir bhai,

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

regd
shahriar

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

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