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Dear Experts

I have a question on insurance document as below.

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L/C called for " MARINE INSURANCE CERTIFICATE/POLICY IN NEGOTIABLE FORM FOR
110 PER CENT OF CIF-VALUE COVERING.....MARKED 'PREMIUM PAID'

FULL SET OF CLEAN ON BOARD MARINE BILLS OF LADING ISSUED TO ORDER AND BLANK ENDORSED
NOTIFY: 1. APPLICANT 2. FORWARDER "XYZ LTD" MARKED FREIGHT PREPAID "

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The presented insurance document shown that assured ABC ltd (beneficiary) and blank endorsed like as below

A B C ltd

xxx
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However, currently, we received an unpaid notice from issuing bank indicated
the reason of the discrepancy is " Insurance document not issued in negotiable form"

I don't understand "in negotiable form" what should I do on insurance document


thanks a lot for your reply

Meg

Hi Pal,

probably the insurance document should have done "to the order of ABC ltd(the beneficiary) so it could be blank endorsed and so used by a further entity.
However the l/c wording was not correct as Insurance document should not treated as a bill of lading.
Other comments appreciated.

PS see LCVIEWS there are several cases on insurance document.

Ciao

The negotiability question for insurance doc cannot be at least legally decided or ascertained by the bank unless the documents does not show that the right to receive payment under claim has been transferred (by endorsement) or by naming as assured the issuing bank or applicant.
I am curious what they consider to be an insurance docs in negotiable form, what are the essential elements unlike a non-negotiable one . Is this an life assurance which indeed cannot be transferred to other beneficiary?
The Insurance policy need not state TO THE ORDER OF....... the essential part of an negotiable insurance policy - at least to the level of bank knowledge is to show assured and the fact that the assured transferred right for claims by endorsement. See K19-K21 of ISBP.