A Signature Clause is found on every car insurance policy document, for example:
IN WITNESS WHEREOF the undersigned acting on behalf of and under the authority of the Company hath hereunto set his hand.
The form of this clause depends upon the rules of individual insurers for the execution of documents.
The format of most motor policies has been standardized by the adoption of the ‘scheduled’ approach. With this approach all the typewritten matter is grouped together in the policy schedule and the intention of the contract is thus more clearly stated to the advantage of all parties concerned.
A format popular with many insurers nowadays is the ‘booklet’ type.
In this will be printed all of the insurer’s standard conditions, terms, clauses and exceptions’, for example, under the ‘Accidental Damage’ section will be shown not only the standard cover available but also the various levels of excess which may be imposed by the insurer or selected by the insured.
Every insured receives this basic policy booklet accompanied by a typewritten schedule which denotes, by way of section and paragraph numbers, the clauses and conditions applicable to his own insurance.
The insured then simply has to refer to the paragraphs in question for a more complete description of the cover provided.
This format and system have the advantage that whenever an alteration is made to the terms and conditions of the policy or whenever there is a change in the vehicle insured and whenever the policy is renewed, the insurers have simply to issue a new schedule setting out the amended particulars and this can bring considerable savings in expenses