HELD COVERED

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HELD COVERED A provisional acceptance of risk, subject to confirmation at a later date that the agreed cover is needed. Where applicable to an existing insurance, cover is conditional, in practice, on prompt advice to the Underwriter as soon as the Assured is aware of the circumstances to be held covered coming into effect, and a reasonable additional premium is payable if the risk held covered comes into effect. Extends coverage for a limited period even if a policy provision might have been technically breached by the insured. It essentially acts as a safety net for the insured (policyholder) in case of certain circumstances that might otherwise invalidate their coverage. Example: imagine a cargo ship insured for a specific route. The captain decides to take a slight detour to avoid a reported storm. This deviation technically breaches the policy wording. However, if the captain promptly informs the insurer and the detour is minor, the "held covered" clause might temporarily extend coverage until the ship returns to its original route. The insurer might then require an additional premium to reflect the extra risk posed by the detour. Common Scenarios where Held cover is applicable; 1-Missing or Incomplete Information: If the insured fails to provide all required information at the outset of the policy but intends to fulfill that requirement soon. 2-Deviation from Voyage: The vessel deviates from its planned route for a legitimate reason (e.g., rescuing another vessel in distress). 3-Change in Risk: There's a minor alteration to the insured risk that wasn't explicitly declared but doesn't significantly increase the risk profile. Held covered" is not a substitute for responsible risk management. The specific terms and conditions associated with "held covered" are defined within the individual insurance policy wording. It's crucial to carefully review the relevant clauses to understand the limitations and obligations associated with this provision. #BeNewinsurance #InsurTech #inclusiveinsurance #insurance #reinsurance #takaful

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