The Insurance Policy represents the legal agreement between the two parties to an insurance contract, namely the insured person or party, and the insurance company. It is written evidence of the existence and terms of the insurance contract.

The policy document is prepared by the insurer and includes the policy wording, proposal form, and the insurance schedule with any exclusions, endorsements and warranties. Legally an insurance policy must include the following: the person and property insured, the risks that are included in the contract, the amount that the insurance company will pay should an incident (against which insurance was obtained) occurs, the premium amount and  the period of insurance.

The schedule is an important part of your contract as this describes exactly what you are insured for and must be looked at in conjunction with the policy document. Every time you make any changes to your policy, for example you change the excess payable on your car insurance, you will receive a new insurance schedule, listing the latest details.

A policy fee is the additional amount added to the basic premium and includes the cost of the issue of the policy. The onus is on the insured to read the policy and to ask questions on any issue that you do not understand.