Page 326 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

All wages are covered in one item and for one amount - for an initial
period, and a proportion only of wages for the remainder of the
indemnity period.

Limitations of Dual Basis Insurance

a) The initial period of full cover must not be less than 4 weeks.

b) The following period of partial cover must be for the remaining of
the indemnity period applying to the gross profit item, which
must not be less than 12 months.

c) The proportion of wages insured for this following period must
not be less than 10 per cent

d) The item must be included on a policy insuring Gross Profit and
for the same indemnity period.

e) The sum insured on wages shall represent the wages for the
indemnity period and average shall be applied on that basis.

Features of Dual Basis Insurance method

a) Carry over provision.
Any wages saved during the initial period can be utilised during
the remaining period.

b) "Option to Consolidate"
Insured is given the option to convert, without additional charge,
his existing dual basis cover into a straightforward 100 per cent
wages cover for an increased number of weeks, but without any
continuing cover other than whatever may be available by the
carry-over of savings provision. The actual period of extended
full cover is governed by the rate of premium already paid for the
original dual basis cover.

Sashi Publications - www.sashipublications.com 339

Copyright@ The Insurance Times. 09883398055 / 09883380339