Page 51 - Fire Insurance Ebook IC 57

The Insurance Times

extended time as may be allowed by insurers, otherwise the loss
will be settled on the normal basis of indemnity (market value)
according to the fire policy.

Reinstatement or replacement may be carried out upon another
site and in manner suitable to the requirements of the insured
subject to the liability of the company not being thereby increased.

ii Until reinstatement is carried out by the insured, the liability of
the company is limited to the normal indemnity basis.

iii. Provisions of under insurance shall apply

iv. The reinstatement basis of settlement will not apply in the following
circumstances.
(a) If the insured fails to intimate to the insurer within 6 months
or any extended time from the date of loss, his intention to
replace the damaged property.
(b) If the insured is unable or unwilling to replace the damaged
property.

In such cases, the loss will be settled on the normal basis of indemnity.

Local Authorities Clause

Reinstatement Value Policy may be extended to cover additional cost
of reinstatement of the destroyed or damaged property solely by
reason of the necessity to comply with the Building or other
Regulations under or framed in pursuance of any act of Parliament or
with Bye-laws of any Municipal or Local authority by incorporating
the local authorities clause in the policy.

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