Page 337 - Fire Insurance Ebook IC 57

The Insurance Times

paid regularly in the course of his business. The Sum
Insured is to be decided by the insured, and the rate of
premium is 100% of the basis rate.

Q3. Discuss the provisions relating to covering
of damage at suppliers premises.

Ans. There are many firms, who are dependent on the supply
of raw materials, semi-finished goods and components
from other producers. At an additional premium, the
C.L policy can be extended to cover this risk.

The endorsement provides that the loss as insured by
the policy resulting from interruption the business in
consequence to damage to property at the supplier's
premises, shall be considered as damage to property at
the insured's premises.

The Tariff provides that :
(i) The extension should be restricted to original

manufacturer's premises and not extended to
intermediary trader's premises.

(ii) Unspecified locations and suppliers abroad not to
be covered.

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