Page 54 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

The premium paid on this sum insured is provisional and is subject to
adjustment on expiry of the period of insurance.

The salient provisions of the Declaration Clause are as
follows :

1. a) The Insured shall declare to the insurance company in writing
the value of his stocks

b) The basis of monthly declaration is average of the highest
value at risk on each day of the month or the highest value
on any day of the month.

c) The declarations shall be submitted by the insured latest by
the last day of the succeeding month.

d) In the event of a declaration not being made, sum insured
under the policy shall be deemed to be the declaration.

e) If other policies on declaration basis cover the stocks hereby
insured, the declarations shall be made so as to apportion to
each policy a share of the value of the stocks insured under
such declaration policies, PRO RATA to the respective
amounts named in the policies.

f) The basis of value for declarations shall be the market value.

2. On the expiry of each period of insurance the premium shall be
calculated at the rate of (applicable tariff rate) on the average sum
insured namely, the total of the values declared or deemed to
have been declared divided by the number of declarations deemed
to have been made.

If the resultant premium is less than the provisional premium, the

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