Document background
An Insurance Addendum is a crucial document used when modifications to an existing insurance policy are required without creating an entirely new contract. This document type is particularly important in the Pakistani insurance market, where it must align with the Insurance Ordinance 2000 and SECP regulations. It's commonly used when there are changes to risk profiles, coverage requirements, or policy terms that don't warrant a complete policy replacement. The addendum specifies modifications to the original policy while confirming that unmodified terms remain in effect. It's essential for both conventional insurance and Takaful arrangements, requiring careful attention to both regulatory compliance and potential Shariah requirements. The document serves as a legally binding amendment that bridges gaps or updates terms in the original insurance agreement while maintaining the overall contractual relationship between parties.
