Page 306 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

bracketed against the rate of gross profit, annual
turnover and standard turnover. By means of this
clause any adjustment may be made to the pre-
fire figures used to calculate the loss. Any figures
taken from past experience for calculation of the
loss can be a guide for figures which would have
been produced, had a fire not occurred.

If the business continues on an even course, then it would
be unnecessary to make any adjustment and both parties
remain satisfied.

If the books of account show that the annual turnover
during the last financial year was greater than the
turnover during the last financial year, i.e, shows an
upward trend, then if the insured can prove that the
upward trend would have continued, had there been no
fire, then the upward trend would be taken into account
in adjusting the loss.

In a declining business, the trend would be a downward

one and hence the corresponding adjustment would be

made accordingly.

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