An insurance proposal form in Cameroon is a detailed questionnaire used by insurance companies to gather necessary information from individuals or businesses applying for insurance cover.
The proposal form forms the basis of the contract and it can be the document that is relied upon by insurers and their legal advisors in determining their liability to pay a claim.
What should be used to create an insurance proposal?
An insurance proposal in Cameroon should contain the following information:
- Introduction: An overview of the provider, what the customer has requested, and how the proposal is responding to their request.
- Schedule: An outline, usually in table form, of the key areas of coverage, the value insured and the excess, where applicable.
- Description of the proposed coverage: Further detail on the areas of coverage, situations and items covered by the policy.
- Exclusions: A clear description of what isn’t covered by the policy.
- Terms and conditions: All the company’s legal information – the small print.
- Premium costs: How much will the customer have to pay and what are the payment options, e.g. one-off cost vs. monthly?
- Additional coverage: Information on add-ons that can be purchased. This provides an opportunity to upsell and cross-sell complementary policies.
- The offer expiration date: When is the insurance offer valid until, after which date, the customer would need to complete a new request?
- Commission percentage: In some countries, brokers must also disclose their commission percentage to their clients as part of the proposal document.
Scope of Liability of an Insurance Proposal in Cameroon
The insurance proposal shall commit neither the insured nor the insurer; only the policy or the cover note shall establish their reciprocal commitment.
Prior to the conclusion of the contract, the insurer shall be obliged to provide an information sheet containing the price, coverage and exclusions.
Proposals made by registered letters with acknowledgment of receipt as well as by countersigned letters or by any other means indicating the date of receipt, extension or modification of the contract or resumption of a suspended contract shall be considered as accepted, if the insurer does not refuse within fifteen days following receipt of the proposal.
The above provisions shall not apply to life insurance.