Page 341 - Fire Insurance Ebook IC 57

The Insurance Times

The limitations applicable are :
(i) The initial period of full cover must be not be less

than 4 weeks.
(ii) 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.
(iii) The proportion of wages insured for this following
period must not be less than 10%.
(iv) The item must be included on a policy insuring Gross
Profit and for the same indemnity period.
(v) The Sum Insured on Wages represents the wages
for the indemnity period and average shall be applied
on that basis.

Two main features are :
(i) Carry over provision - Any wages saved during

the indemnity period can be utilized during the
remaining period. So, the insured may reduce the
labourers immediately following the damage and
utilize them in good time before required on actual

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