Certificate of Insurance

A Certificate of Insurance (COI) is a concise document that serves as evidence of insurance coverage without reproducing the full policy wording. In the Indian B2B insurance context, COIs are essential operational documents used extensively in commercial transactions, contractual compliance, and regulatory filings. Unlike the policy document itself, a COI is typically a one- or two-page summary that confirms the policy exists, identifies the insured parties, states the coverage period, lists the types of coverage and limits, and names any additional insureds or loss payees.

In Indian commercial practice, COIs are routinely demanded by various stakeholders. Banks and financial institutions require COIs to confirm that loan-collateral properties are adequately insured with the lender named as loss payee. Contractors must provide COIs to project principals demonstrating they carry adequate liability and workers' compensation coverage. Landlords require tenant COIs before granting possession of commercial premises. Export clients may require COIs to verify that goods in transit are covered under Institute Cargo Clauses.

The legal status of a COI in India is that of an evidence document rather than the contract itself. The actual terms and conditions of coverage are governed by the policy wording, not the COI. This distinction is important because if there is a discrepancy between the COI and the policy, the policy terms prevail. Indian businesses should therefore not rely solely on the COI and must always review the underlying policy wording. IRDAI regulations require insurers to issue the policy document within a specified timeframe, and the COI should not be treated as a substitute for the actual policy. For open cover marine policies and group health policies, certificates of insurance serve as individual evidence of coverage for specific shipments or employees under the master policy.