Page 300 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance
Gross Profit X Reduction in turnover avoided by an additional
expenditure

If the amount arrived in step five is more no action should be
taken.

With the amount arrived in step five is less than the amount
payable as additional expenditure shall be limited to the amount
arrived in step five.

Step six: Deduct any savings in insured standing charges

Steps seven: Arrive at the final claim amount payable by adding
Initial claim amount + Adjusted additional expenditure - Savings
in insured standing charges

Step eight: Apply any under insurance
Gross profit x Annual turnover
If the resulting amount is less than the insured amount applied
the condition of average as below

Gross Profit Insured
X Final Claim Amount

Gross Profit on Annual Turnover

The amount arrived at will be treated as final claim payable.

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