Page 123 - Fire Insurance Ebook IC 57

The Insurance Times

Question & Answers

Q1. Write short notes on :

Ans. (a) Partial insurance - It is not permissible to issue a
policy

(i) Covering certain portions only of a building. Plinth
and foundation however, may be excluded.

(ii) Covering only specified machinery, parts of machine
or accessories housed in the same block/building.

Where portions of a building and/or machinery are under
different ownerships, it is permissible for each owner to
insure separately, but to the full extent of his interest.

a. Short period rates - Policies for period of less than
12 months are issued at Short period Scale of rates:

(i) For period < 15 days - 10% of the annual rate
(ii) For period < 1 month - 15% of the annual rate
(iii) For period < 2 months - 30% of the annual rate
(iv) For period < 3 months - 40% of the annual rate
(v) For period < 4 months - 50% of the annual rate
(vi) For period < 5 months - 60% of the annual

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