Insurance Policy: What is it

Insurance is essential in our lives, both personally and professionally: insurance provides us with support, security and efficiency.

What is an insurance policy?

We all know the importance of insurance and use it, whether to protect our heritage, our health or the future that lies ahead.

An insurance policy is the document in which the basis of the insurance contract is determined. In this way, the rules that make it up are recorded in a general or private way.

With its issuance, the official relationship between the insurance company and the insured is established, determining their rights and obligations.

Insurance Policy: What is it?

The contracting party through it is obliged to pay the agreed insurance premium, and the insurer must repair the damages or pay the amounts stipulated in the event of any of its provisions.

The policy contains different types of clauses that regulate different aspects of the relationship between the insurance company and the insured. Next, we explain it to you:

General Conditions of Insurance

These are the basic aspects determined by the insurance company within the contracted insurance method; which means that these conditions will be the same for the contracted product, regardless of the customer.

The insurance company is obliged to include and write them as clearly as possible, and in no case can they be harmful to the contracting parties.

These include:

  • The terms used in the policy.
  • Nature of the risk covered and designation of the insured objects and their situation.
  • Situations not covered by the policy.
  • The limits or maximum values covered by the company; that is, the maximum total amount that will be paid by the insurance company (in case any damage occurs that affects what is protected by the contract).
  • The responsibilities of both parties.
  • In relation to the obligations of the insurance company, the main one is to pay the compensation according to the conditions agreed in the insurance policy.
  • Arbitration, which is a clause of the policy in which it is established how to solve the possible differences between the insurer and the insured, in the interpretation of the terms included in the policy.

Special conditions of insurance

They include what is related to the specific conditions of the risk for the person or insured, which implies the singularization of a specific policy. In this way, they expand on the provisions of the previous section.

Some of the data collected here are:

  • Name and address of the contracting parties.
  • Insurance modality.
  • Nature of the insured property or person to be insured.
  • Beneficiaries, that is, those who receive compensation in the cases established in the policy.
  • Contracted coverage.
  • Exclusions or situations not covered by the policy.
  • Amount of the premium, indicating the periodicity and method of payment of the same.
  • Duration of the insurance, determining the period of validity of the same.

Special insurance conditions

Finally, the policy includes special conditions. In this case, the rules contained in the particular and general conditions will be detailed here, qualifying the provisions thereof.

Examples of special conditions can be: the removal of some exclusions or the introduction of different ones.

What is also known as the annex to the insurance policy,

It is an additional editor that includes some amendments and additions that may be contained in the original policy, such as the insured's desire to cover an additional risk or the agreement to cover a new risk, and the same provisions apply to it as the original policy.

Sources - Insurance Policy + wikipedia


The insurance policy is considered the final form of the contract, which indicates the existence of the contract after fulfilling the previous procedures and requirements, and it plays a key role in proving the contract and determining the rights it contains.

From a purely theoretical or academic point of view, the insurance contract is studied and exposed as it represents a general framework for the legal relationship between the insurer and the insured in terms of the conditions of its convening, composition and effects.


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