Page 366 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

is considered and discounts upto 25% are provided for. For
adverse loss experience, higher excess will be imposed at the
discretion of the TAG.

ii] Discount for higher deductions :
The policy is subject to specified compulsory deductibles as
indicated above. However, the insured can opt for higher
deductibles, for which slabs of discount on the premium rate have
been prescribed. These are as under :-

Material Damage Claims Discount
10%
Deductible 15%
20%
5% of the claim amount subject to 25%
minimum of Rs.10 lakhs.

5% of the claim amount subject to
minimum of Rs.15 lakhs.

5% of the claim amount subject to
'minimum of Rs.20 lakhs.

5% of the claim amount subject to
minimum of Rs.251akhs.

Sum insured :

a] The policy in so far as it relates to Buildings, Machinery, Furniture,
Fixtures, Fittings and Electrical Installations shall be on
Reinstatement Value Basis only, while the Stocks shall be covered
on Market Value basis.

b] The Policy shall be subject to condition of average.

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