Insurance Policy (Police)

Concept

The insurance policy is the document issued by the insurer after the contract is concluded, confirming in writing the conclusion of the insurance contract and its essential content. It typically contains information about the contracting parties, the insured risk, the sum insured, the premium, the term, and the underlying policy conditions.

Legal Significance

The policy generally has only declaratory significance, meaning the insurance contract is already formed through the concurring declarations of intent by the insurer and the policyholder, rather than only upon issuance of the policy; it nevertheless serves as important evidence of the contract’s content and is a precondition for certain rights, such as the requirement to produce the policy when asserting a claim.

Forms

In addition to the classic named policy, which ties the rights to a specific person named in the document, certain insurance lines – particularly cargo insurance – also make use of transferable policy forms such as the order policy or the bearer policy, which allow coverage to be passed on to third parties without a new contract being concluded.