Page 252 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

alongwith other documents and, if everything is in order, a discharge
voucher is sent to the insured for his signature and return, on receipt
of which a cheque in settlement is sent.

Reinstatement of sum insured

n As per condition 15 of the Fire Policy, upon the settlement of any
loss under the policy, pro-rata premium for the unexpired period
from the date of such loss to the expiry period of insurance for the
amount of such loss shall be payable by the Insured.

n This additional premium is deducted from the net claim payable
under the Policy. Thus, the insurance cover is maintained to the
full extent of the sum insured.

n However, in case the Insured immediately on occurrence of the
loss exercises his option not to reinstate the sum , insured, the
sum insured shall stand reduced by the amount of loss.

Discharge voucher

n The discharge voucher must be signed by all the persons named
in the policy as "The Insured", and the cheque is drawn in favour
of all parties mentioned in the policy.

n If the policy contains the 'Agreed Bank Clause' discharge given
by the bank is final and the amount of the claim can be paid
directly to the bank. However, the claim can be paid to the insured,
if the bank named in the policy authorises the company to do so.

n The fees of the surveyors are reimbursed after obtaining a
receipted voucher from them.

n Before the cheque is settlement of the claim is released, the payment
is recorded in the claims register and the claim docket.

Sashi Publications - www.sashipublications.com 265

Copyright@ The Insurance Times. 09883398055 / 09883380339