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What Is Affidavit of Loss?
An affidavit of loss is a document that declares the loss of an asset, like a share certificate or passport, usually owing to theft or destruction. Individuals use it to file a claim with the insurer seeking compensation or a replacement for the damaged or lost item.
This affidavit contains important information regarding the asset, for example, the owner’s name, a serial number, or the date of issuance. Individuals may need to file this affidavit to request a certified copy to replace a government-issued document, such as a marriage license, vehicle title, passport, driver’s license, and more.
Table of contents
- The affidavit of loss meaning refers to a form that one can file to announce the loss of or damage to a specified asset seeking monetary compensation or replacement. Such a loss or damage may arise due to fire, theft, flood, etc.
- One can look for an affidavit of loss sample online if they are having trouble creating one offline.
- Per the requirements for affidavit of loss, the affiant must enter certain details, like their name, address, a brief description of the lost property, the purpose of executing the document, etc.
- Individuals must make sure to notarize a loss affidavit.
Affidavit Of Loss Explained
The affidavit of loss meaning refers to a written statement under oath that swears to the loss or damage of a certain asset or assets. For example, the loss might occur due to flood, fire, destruction, theft, etc. Individuals must file this form with a company that takes action depending on the damage to or loss of the covered asset. For instance, one must file this document with an insurance provider so that the company can compensate them or replaces the asset. Some other names for this document are the loss affidavit, certificate of loss, and individual loss affidavit.
Let us look at some details that this document contains:
- Date of loss
- Details concerning the property
- Nature of loss
- Name of the property’s owner
Typically, insurance providers require individuals to file this form. Once a person files the document, the company can process it and issue a letter of indemnity. This letter requests the replacement of the damaged asset or compensation in case of loss or destruction.
As noted above, one may require this document when seeking a replacement for a government-issued document, for example, a passport, vehicle title, etc. In addition, companies issuing certified documents like promissory notes, credit or debit cards, and share certificates may require individuals to file this affidavit before issuing new documents as a replacement.
How to Get?
There are two things that one must know to get this affidavit. Let us look at them in detail.
#1 - Requirements
One must enter the following details to fulfill the requirements for affidavit of loss while creating the document:
- The legal name of the affiant and other crucial details concerning them, for example, nationality, residential address, date of birth, etc.
- A brief description of the lost or damaged asset
- The purpose of executing the affidavit
- An explanation of how the property got lost, stolen, or damaged
Note that one must ensure to notarize the document. In other words, the affiant must sign the document before a notary public after providing the necessary valid legal details.
#2 - Sample
If individuals face trouble while creating this document manually, they can download an affidavit of loss sample available online and fill in the required details. The image below is a sample.
Example
Let us look at this affidavit of loss example to understand the concept better.
Suppose Jason misplaced a share certificate. He creates a loss affidavit declaring that he lost the document. He made sure to enter all the required details, such as personal details like date of birth and address, an explanation of how he lost the document, etc. After inspecting the details provided in the loss affidavit, the company that issued the document reissued a new share certificate to him.
Affidavit Of Loss And Indemnity Agreement
For individuals new to the world of finance, understanding the meaning of complex terms like loss affidavit and indemnity agreement can be challenging. Hence, let us look at this table that highlights the key aspects of these two concepts.
| Basis of Comparison | Loss Affidavit | Indemnity Agreement |
|---|---|---|
| Meaning | It is a document that one uses to declare the loss of a certain asset, usually due to destruction or theft. | Also known as a no-fault agreement or a hold harmless agreement, this document safeguards a party involved in a transaction from the risks created by another party. |
| Purpose | The main purpose of filing this form is to declare the loss of a covered asset. | It aims to compensate a party for the damage or loss arising from the other party’s failure to act or actions. |
Frequently Asked Questions (FAQs)
Usually, the notarization cost of a loss affidavit in the Philippines starts from PHP 100. That said, individuals must remember that the cost varies from one notary public to another. Moreover, the place is a factor determining the cost of notarizing a loss affidavit.
Individuals must submit a loss affidavit to notify a registrar’s office, court, or any agency that the original document is lost, and the affiant, i.e., the person filing the affidavit, requires a certified copy of the same.
Yes, individuals can make their loss affidavit. That said, they must make sure to enter the necessary details, for example, their full legal name, date of birth, description of the lost or damaged asset, explanation of how it got lost, etc. Also, an affiant must notarize the document.
A loss affidavit does not have an expiry date. That said, it is valid only for the particular incident in which one lost the document. Hence, individuals can only use it once.
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This has been a guide to Affidavit Of Loss and its meaning. Here we explain it in detail such as Steps to get it, its Example and Difference with Indemnity Agreement. You may also find some useful articles here:
