Page 231 - Fire Insurance Ebook IC 57

The Insurance Times

barred.

The condition provides that the insured shall render
necessary and reasonable assistance to the insurer to
recover the loss.

Finally, the amount of claim payable is affected by the
terms of the policy.

l. Pro rata average - Underinsurance is a condition where
the insurance cover taken is not adequate to cover the
value of the property. Many a times the insured tend to
choose a lesser cover to save on the premium amount.
In case of under insurance, the amount of claim is
proportionately reduced.

This is done to discourage the tendency of not covering
oneself adequately to save some premium amount and
also to penalize the insured for depriving the insurance
company from paying the correct premium amount.

Q2. What are the duties of insured in respect of
claim.

Ans. There are several duties of the Insured in respect

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