Page 69 - Fire Insurance Ebook IC 57
P. 69
The Insurance Times
2) If the insured is unwilling or unable to
replace the damage property , the loss will
be settled on the normal basis of indemnity.
Q7. What is local authorities clause? Which
amount is not recoverable under this clause?
Ans. Reinstatement Value policy may be extended to cover
additional cost of reinstatement of the destroyed or
damaged insured property solely by reason of the
necessity to comply with the Buildings and other
Regulations under any Act of Parliament, Municipal or
Local authority. No additional premium is to be paid for
inclusion of this additional clause.
The amount recoverable under this extension
shall not include :
(a) The cost incurred in complying with any Regulations
of Bye-laws:
(i) In respect of destruction or damage occurring prior
to the granting of this extension.
(ii) Damage not insured by the policy.
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