Preamble Clause
The preamble clause in a car insurance policy document is the introductory part (recital) that sets out the important or essential elements, underlying facts and assumptions that could be drawn from the detail in the contract. The objective of the preamble clause is to make certain that the meaning of the operative part of the contract is clear of any misunderstanding and misconceptions. It is also sometimes referred to as the recital clause.
The preamble clause helps to clarify the information that follows, explaining the purpose of the contract and sets out the objectives. The preamble clause usually has the following information:
- It names the different parties to the contract – the insured person and the company providing the insurance.
- It refers to the proposal form and declaration completed by the insured party that will form the basis of the insurance contract.
- It makes mention of the premiums that the insured party needs to pay to the insured who, in return, will indemnify the insured against defined events as stipulated in the policy.
After the preamble clause the general and specific conditions, exclusions and terms of the policy will follow.