Page 327 - Fire Insurance Ebook IC 57

The Insurance Times

Advantages of 'dual basis'

n Wages are entirely removed from the gross profit cover and receive
separate treatment. This enables the insured to scrutinise his
wages position more carefully, and to facilitate the arrangement
of adequate sums insured;

n If wages are insured under Gross Profit item, they will be merged
with other standing charges and it is quite likely there may be
under-insurance which is penalised by the application of average.

Lay-off / retrenchment compensation

n The insurance under this item is limited to the amount which the
Insured shall become legally liable to pay and shall pay to the
employees as Lay-Off and / or Retrenchment Compensation under
the provisions of the Industrial Disputes Act, 1947

n The amount payable as indemnity under this Item shall not exceed
the amount which would otherwise have been payable as wages
to the said employees during the Period of Indemnity, had no
damage occurred.

n If the sum insured by this policy shall be less than the aggregate
amount of combined Lay-Off and Retrenchment Liability to the
said employees the amount payable shall be proportionately
reduced.

Auditors fees

n In case of any claim the insured is required at his own expense to
produce books of account and other documentary evidence to
support his claim.

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