Page 66 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

(x) Equally important are the words "Not superior
to or more extensive than the insured property
when new as on the date of the loss.

(xi) The damage property is replaced by new
property which however is in no way better than
the insured property when new. If due to
technical advancement replaced machinery is
better than the damaged machinery. The output
is increased with less consumption of power,
the insured is obliged to bear a part of the cost
of the new machinery to ensure that he does not
derive any undue benefits.

(xii)As far as possible the new machinery should be
of the same production capacity, producing
more or less product of the same quality. Being
identical is the main but not the sole criterion.
Each case is considered on merits and decisions
on allowances and adjustments are taken
through negotiations.

(xiii) Due to technological advancement ,
replacement of manually operated machines
with automatic or semi automatic ones may be

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