Insurance Certificate

Insurance Certificate is a simplified insurance document in foreign trade transport insurance, issued by an insurance company or its agent to certify that the goods have been insured. It typically states core information such as the insured, cargo description, insured amount, risks covered, and voyage, but does not include the full insurance clauses on the back. Usage scenarios: In letter of credit settlement, if the L/C requires submission of an insurance certificate rather than an insurance policy, the exporter may submit this document; or the importer accepts an insurance certificate to simplify procedures. Precautions: The legal effect of an insurance certificate is lower than that of an insurance policy, and some letters of credit or importing country customs may not accept it; if the L/C requires an "Insurance Policy," an insurance certificate cannot be substituted for it. Differences from an insurance policy: An insurance policy is a formal contract with complete clauses on the back, while an insurance certificate is a simplified document that only certifies the fact of insurance, and in the event of a claim, an insurance policy may be required. Therefore, foreign trade practitioners must strictly review L/C terms to confirm whether an insurance certificate is acceptable, so as to avoid discrepancies.