Page 67 - Fire Insurance Ebook IC 57
P. 67
The Insurance Times
desired by the insure. In such cases substitutions
by less or more numbers of such improved
machines are considered to maintain more or
less the same production.
(xiv)Similarly the new building should not be more
extensive or superior to the one destroyed. As in
the case of machinery any betterment if accrued
to the insured, he is made to contribute towards the
cost of betterment.
(xv) Loss settlement on total loss of building and
machinery has been considered. In the event of
partial damage to the building or machinery ,the
basis of settlement is the cost of repair without
taking into account depreciation.
(xvi) There are four provisions in the reinstatement
clause.
They are
1) The work of reinstatement must be commenced
and carried out by the insured and completed within
12 months from the date of destruction or damage,
failing which the loss will be settled on the basis of
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