Page 298 - Fire Insurance Ebook IC 57
P. 298
Fire and Consequential Loss Insurance
Condition 7 provides for automatic reinstatement of the sum
insured, after a loss by deducting from the claim amount, pro-
rata premium from the date of loss to the date of expiry of the
policy.
Losses not payable
It is important to note the types of consequential losses not covered
under the policy. These are;
(a) Under-insurance against property damage under fire policies.
(b) The difference between value of stock at the time of the fire and
value at the time of subsequent replacement.
(c) Depreciation of undamaged stock after a fire.
(d) Cost of preparation of fire and consequential loss claims.
(Accountant's fees for extracting and certifying particulars of
profits claims may be insured as a special item, in a
consequential loss policy at additional premium. - Auditors
Fees Clause).
(e) Litigation costs connected with fire or Consequential loss claims
generally.
(f) Third Party claims.
(g) Failure to recover book debts owing to destruction of records.
(h) Loss of goodwill.
(i) Fines and Penalties payable due to delayed fulfillment or
cancellation of sale/service contract.
Sashi Publications - www.sashipublications.com 311
Copyright@ The Insurance Times. 09883398055 / 09883380339
