Page 76 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

b. Contract price insurance clause- In the case of
insurance of imported goods only which are sold under
a contract which is cancelled either wholly or to the
extent of loss or damage, it is permissible to issue a
policy on the basis of Contract Price.

There is a clause which declares that for those goods
which are sold , but not delivered (for which the insured
is responsible) and the sale contract is covered as a
peril under the Policy, if the insured suffers whole
or partial loss due to the cancellation of the contract,
the company bears liability based on the contract
price .

c. Designation of property clause - For the purpose of
determining where necessary, the item under which any
property is insured, the insurers agree to accept the
designation under which the property has been entered
in the insured's books.

The practice of classification of items in the book of
accounts vary among the insured. For e.g, a compound

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