Page 13 - Fire Insurance Ebook IC 57

The Insurance Times

Stocks:- (i) Raw Material - Market Value, i.e the cost
at which the insured can purchase it in the
market to replace the damaged raw
material.

(ii) Semi finished goods - Market Value, i.e the
cost of raw materials plus all the overhead
expenses incurred up to the stage it has been
produced.

(iii) Finished goods - Market value, i.e, the cost
of raw materials plus all the overhead
expenses incurred till it reaches the finished
goods stage. However, selling price
including profit cannot be taken as the sum
insured.

(D) Subrogation - The principal of subrogation is the
corollary of the principle of indemnity. If the loss
suffered by the insured can be recovered from third
parties who are responsible for the loss, the insured's
rights of recovery are transferred or subrogated to
the insurers , when they indemnify the loss.

(E) Contribution - The principle of contribution, which is

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