What is involved in issuing such?
The issuing of the certificate should only be issued by the Insurer, Underwriting manager or Insurance intermediary as with it, comes a whole lot of responsibility. The bank usually seeks cover for a certain amount. This is often over and above the present unit sum insured. Some of the processes involved:
- An audit / check on the very latest Schedule of Replacement Values provided by the body corporate verify that it matches the latest Insurance Policy Schedule.
- The Schedule of Replacement Values is amended and a copy sent to the body corporate and the insurer so that the policy is simultaneously endorsed to the new correct replacement value.
- The banks interest is usually noted in the policy and is done by way of endorsement.
- The bank’s attorney is invoiced.
- Once paid, an insurance certificate confirming the salient information is both emailed and posted or delivered to the attorney.
- Addsure monitors the underwriting process until the new policy endorsement is delivered to Addsure. Once received the endorsement and insurance premium adjustment is checked and the endorsement delivered to the body corporate together with a Debit Advice voucher for the additional premium in respect of the additional sum insured.
- The new owner is obliged to pay for this premium. This is prescribed.
- Addsure estimates a pro-rata annual premium and advises the body corporate by means of the abovementioned Debit Advice note. The body corporate will pay the additional premium in the normal course of premium payment, however, will use this debit advice voucher as documentary evidence when charging / recovering this premium from the owner concerned.
- Addsure will provide the body corporate will annual accounting in this regard.
- This certificate is issued on Addsure paper to ensure that an onerous request made by the banks, which may reflect on the bank’s paper, is not inadvertently agreed to. Great care is taken with the issuing of certificates and each is meticulously checked. Certificates issued by Addsure are signed by two authorized signatories.