Page 348 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

consequential loss insurance.

Ans. Revenue policies are appropriate for cases where the
undertaking provides a service as opposed to a
manufacturing business where the raw material
would be the biggest single item in the book of
accounts. These policies are applicable to Hotels,
Clubs, Private Schools, Private Hospitals and Nursing
Homes etc.

The policy broadly follows the pattern of the turnover
policy, but the term 'turnover' is replaced by 'gross
revenue', which is defined as the money paid or payable
to the insured for services rendered in the course of the
business at the premises.

The specification incorporates - definitions of Indemnity
Period, Standard Gross Revenue and Annual Gross
Revenue, and Special Circumstances clause and refund
of premium clause.

The Sum Insured is the Gross Revenue. The amount
payable is :
(i) The amount by which the gross revenue during

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