Page 53 - Fire Insurance Ebook IC 57

The Insurance Times

3. If the liability of the insurer under (any item of) the policy apart
from this extension shall be reduced by the application of any of
the terms and conditions of the policy then the liability of the
Insurers under this extension (in respect of any such item) shall
be reduced in like proportion.

4. The total amount recoverable under any item of the policy shall
not exceed the sum insured thereby.

5. All the conditions of the policy except in so far as they may be
hereby expressly varied shall apply as if they had been
incorporated herein."

6. No additional premium shall be charged for inclusion of this clause
in this policy.

Declaration Policies

The stocks which are subject to frequent fluctuations in value or in
quantity present a problem for insurance. The sum insured under the
fire policy will have to be increased or decreased by endorsement with
consequent adjustment of premium, extra or refund, as the case may
be. This would mean additional administrative work both for the insurer
and the insured.

This problem can be solved by the issue of a declaration policy, which
is in fact, the fire policy with a Declaration clause attached to it.

The insured can fix a provisional sum insured which represents the
highest value of stocks at any point of time during the policy period.

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