Page 216 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

Furniture, fixtures and fittings

These may include any of the following :-
(a) Furniture, tables, chairs, desks, cabinets, safes etc.
(b) Counters, showcases etc.
(c) Mechanical fixtures, scales, lighting fixtures, fans, air conditioning

systems.
(d) Furnishing, draperies, Venetian blinds, carpets etc.
(e) Typewriters, adding, calculating and other business machines,

etc.

The indemnity provided for these classes of property is replacement
cost less depreciation.

Damage claims are settled by paying the cost of repair with an allowance
for any betterment.

Stock-in-trade

n Stock-in-trade in the hands of retailer or wholesaler can ordinarily
be replaced, if lost or destroyed.

n Market value at the time and place of the loss will provide indemnity.
The basis of settlement would therefore, be the cost of
replacement and not the price at which they would be sold (which
price includes an element of profit).

n To the invoice price is added the cost of transporting the goods
to the place of loss but credit must be given for any trade or cash
discount or other concessions enjoyed by the insured in the normal
course of his business.

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