Page 59 - Fire Insurance Ebook IC 57

The Insurance Times

any property is insured, the insurers agree to accept the designation
under which the property has been entered in the insured's books.

The practice varies among the insureds as regards classification of
items of property in their books of account. For example, a compound
wall may be treated as part of plant value or an air-conditioner may be
classified as machinery and not electrical machinery.

In the event of a loss, the Surveyor will have to consider under which
item of property covered the loss falls.

The clause clarifies the position in order to avoid any disputes on the
issue.

Omission to insure, additions, alterations or extensions
clause

By adding this clause, which is incorporated at the time of issuing the
policy, the insurance is extended to cover Buildings and/ or Machinery,
Plant, Furniture and Fittings (but not stocks) as defined in the Schedule
of the policy which the insured may erect or acquire or for which they
may become responsible.

The salient features of this clause are :
a) The liability under this extension shall not exceed 5% of the sum

insured under the relevant property.
b) Additional premium on 5% of the sum insured at the policy rate is

collected in advance.
c) The insured shall notify each additional insurance as soon as it

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