Page 340 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

(i) Included as standing charge in the Gross Profit
for 18 months. Indemnity period - 15% of wage
roll.

(ii) Insured as a separate item on annual basis for 6
months. Indemnity period - 35% of wage roll.

(iii) Insured as a separate item on an annual basis for 3
months. Indemnity period - 50% of wage roll.

By this method,
(i) 100 per cent of wage roll is protected the first 3

months.
(ii) 50% is protected during next 3 months.
(iii) 15% is protected in the next 3 months.

The rating is done according to the normal scale .

(D) Dual basis method, features and advantages -

This is a modern method of wage insurance and is

very popular. Under this method, wages are entirely

removed from the gross profit cover, and are insured

as a separate item. All wages are covered under a

single item, for one amount, for an initial period and a

proportion of wages for the remainder of indemnity

period. 353

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