Page 74 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

At all times during the currency of the policy, the
insured should have a good audit and accounts
procedure under which the total amount at risk and
the locations can be established at any point of time.

Floater Declaration Policy is issued when the Sum
insured is minimum of Rs.2 crores and in compliance
with the Rules for Declaration policies. However, the
minimum retention shall be 80% of the annual
premium.

Q 10. Write short notes on:

a. Agreed bank clause - All policies in which a bank has
a partial interest shall be made out in the name of the
bank and owner or Mortgager. The salient features are:
(i) Upon any moniesbecomingpayable underthispolicy
shall be paid by the Company to the Bank & such
part of any monies so paid as interests of other
parties, shall be received by the Bank as agent for
the other parties.

(ii) The claim is payable to the bank whose receipt shall
be a complete discharge and therefore binding on
all the parties insured.

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