Page 17 - Fire Insurance Ebook IC 57

The Insurance Times

be proportionately reduced by applying pro-rata
average.

Q5. What is the operative clause under fire
policy?

Ans. The Operative Clause of fire policy consists of three
parts, preamble, perils covered and limitations.
(i) The first part, the preamble, recites the parties to
the contract and provides that ' if, after the
payment of premium, the property insured
described in the schedule be directly destroyed
or damaged by any of the perils specified during
the period of insurance or during renewal of the
policy for which premium is received, the
company shall pay to the insured, subject to the
terms of the policy, the value of the property at
the time of its destruction, or the amount of such
damage or at its option reinstate or replace such
property.'

The Second part gives the description of perils that
are covered under the fire policy.

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