Page 73 - Fire Insurance Ebook IC 57

The Insurance Times

expiry of the policy, the liability of the policy
remains up to the full sum insured at all times
during the currency of the policy.
(iii) The provision for adjustment of premium is an
incentive to the insured to effect cover for the
maximum amount at risk as anticipated by him.

Q9. When a floater policy issued? When a floater
declaration policy is issued?

Ans. Floater policies are issued to cover stocks, which
fluctuate between different location, under a single
policy. The stocks may vary between godowns, towns,
cities, or even states. Because of their fluctuations
between different locations, the insured is not able to
give separate values of each godown, but may be able
to give the total of his stocks across all locations. So, the
floater policy covers stocks at various locations under
one sum insured.

The premium charged is the highest rate applicable to
the insured's property at one location plus 10% loading.

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