Page 342 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

production time.

(ii) Option to Consolidate - By this clause, the
insured is given the option to convert his dual
basis cover into a straight forward 100% wage
cover, without any extra charge. But it does not
carry on any other cover apart from the carried
over cover.

The actual period of extended full cover is governed by
the rate of premium already paid for the original dual
basis cover. Generally, the option to consolidate is
exercised during the claim, but also can be dependent
on the circumstances.

The rates of premium vary according to the Indemnity
Period, Period of full cover of wages and proportion
of wages insured for the remainder of the Indemnity
Period.

Q5. Discuss the concept of output basis of the
specification and its provisions.

Ans: In this basis, Output is used as the index of

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