Page 217 - Fire Insurance Ebook IC 57

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Manufacturer's stocks

The stocks at manufacturers' premises may consist of
(i) raw materials;
(ii) stock-in-process; and
(iii) finished goods.

Type of Stock Measure of Basis of
Raw materials Indemnity settlement
Market price plus
Stock-in-process Indemnity is clearly costs of
Finished goods represented by the transportation upto
landed cost at which the site of fire.
such materials are
available at the place The costs of
of fire and at the time processes yet to be
of fire; incurred are excluded.
It should not include
Total cost incurred any anticipated
till the time of profit.
damage by fire

Total cost of good
lying in the manu-
facturers premises

Household goods and personal effects

n These terms describe all articles ordinarily and normally found
and used in a household. The terms include furniture, (cooking,
utensils, domestic appliances, television, etc. The term personal
effects would include wearing apparel, books, etc.

n In general, it is the accepted practice that if these classes of property
are lost or destroyed, they can be replaced from the market and

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