Page 318 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

(vii) Loss of goodwill.
(viii)Failure to recover book debts owing to

destruction of records.
(ix) Fines and Penalties payable due to delayed

fulfillment or cancellation of sales/service
contracts.

Q6. Which other factors influence the

underwriting of consequential loss

insurance?

Ans. There are several factors which are considered for
underwriting the consequential loss insurance :
(i) The Insured must maintain a material damage policy
and the claim for consequential loss policy will be
paid only if the material damage claim is payable.

(ii) The liability of the Company shall in no way exceed
the sum expressed by addition of the individual items
in the schedule.

(iii) The Insured's business must be described in full and
the premises must be precisely defined.

(iv) The Standing charges to be covered by the policy

are specified and named clearly in the proposal

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