Page 324 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

The rate of premium depends upon

a) The extent of dependence of the business upon the suppliers e.g.
5%, 10%, 15% and so on.

b) Whether the dependence is on a number suppliers for similar
goods

ii) The dependence is total on a number of separate suppliers for
different components.

The name of the supplier, situation of premises and limit for any one
location expressed as a percentage of sum insured are specified in the
extension endorsement.

Damage at customer's premises

n Similar extension can be granted on Customer's premises.
n The cover is against consequential loss to the insured arising out

of named customers not taking delivery of the products exclusively
manufactured for them as a result of operation of the insured
perils at their premises.
n Premium rates are the same as applicable to "Suppliers" premises
but with a 20% loading.

Insurance of wages

n The basic policy dealt with in the previous chapter covers gross
profits which means net profit plus insured standing charges.
The policy may, however cover additional items such as wages,
lay-off retrenchment compensation and auditors fees. So far as
salaries are concerned, it is generally accepted that they should
be insured as a standing charge for the full indemnity period
selected for the gross profit item.

Sashi Publications - www.sashipublications.com 337

Copyright@ The Insurance Times. 09883398055 / 09883380339