Page 336 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

d. Lay off/retrenchment compensation - Sometimes
some employees have to be laid off or retrenched in the
event of closure of a manufacturing concern due to
certain circumstances beyond the control of the
employers, such as Fire, or any other insured peril.

Then a payment has to be made by the employers as
per the basis incorporated in the Act, as per the
regulations under the Industrial Disputes Act 1947. This
liability becomes quite heavy and hence can be covered
by consequential loss policy. The cover is specifically
meant to include Insured's liability towards the employees
under the Act.

e. Auditor fees - Under condition 3 of the policy, an insured
is required to produce books of account and other
documentary evidences to support his claim, at his own
cost. Usually, the surveyors work closely with the
insured's auditors to produce the required information.

The auditor's fees for this work can be insured. However,
these fees are to be distinguished from normal audit fees

Sashi Publications - www.sashipublications.com 349

Copyright@ The Insurance Times. 09883398055 / 09883380339