Page 354 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

(ii) The surveyor then recommends measures for
speedy resumption of business, making it clear that
the increased cost of work will be paid subject to
the policy terms and conditions. E.g, earning of
turnover by the increased cost and penalty if the
standing charges are not insured.

(iii) The surveyor then prepares a preliminary report
indicating the extent of the interruption expected,
the steps being taken to minimize the interruption,
and the amount which in his opinion should be
provided in the insurer's books as a reserve against
the estimated loss. It is frequently difficult to say at
once, the extent of duration of the period of loss
and the probable loss amount, so a generous
estimation is to be reserved.

(iv) As soon as practically possible, the necessary
preliminary examination of the accounts of business
is made in order to ascertain whether all standing
charges, have been insured, and whether the amount
insured on net profit and insured standing charges
is adequate for the expectations of the business.
The surveyor may make the examination himself,

Sashi Publications - www.sashipublications.com 367

Copyright@ The Insurance Times. 09883398055 / 09883380339