Page 414 - IC38 GENERAL INSURANCE

c) Section 3: Increased cost of working - to ensure continued data
processing on substitute equipment upto 12, 26, 40 or 52 weeks.

9. Advance Loss of Profit Cover (ALOP) or Delay in Start-up Policy (D.S.U.)
This covers financial consequences of a project being delayed because of
accidental damages during the project. It is suitable for the insured who is
deprived of the anticipated earning and the financial institutions to the extent
of their interest in the project. It is issued as an extension to the MCE/EAR/CAR
Policy before the actual commencement of project.
The policy also covers financial losses in the form of continuing expenses such
as interest on term loan, debentures, wages and salaries etc. and on the
anticipated net profit which the business could have earned if it had
commenced on the scheduled date.
Premium rating depends on various critical factors and on re-insurance support
available. The anticipated gross profit or turnover and the indemnity period are
also critical factors in deciding the premium payable.
Test Yourself 8
Delay in start-up policy is also known as ______________.
I. Machinery Loss of Profits cover
II. Advance Loss of Profits cover
III. Contractors All Risk cover
IV. Contractors Plant & Machinery cover

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