Page 11 - Misc Ebook IC 78

Miscellaneous Insurance

the estimated maximum likely loss in any one occasion.
The sum insured is expressed as a percentage of the
full value.

Since these are not full value policies, the pro-rata
condition of average is not applied.

However, policies may be issued with the condition of
partial average which states that in the event of the total
value of stocks at risk at the time of loss be greater than
the total value declared for the purpose of this insurance
and incorporated in the schedule, the insured will have
to bear the difference ratable share accordingly. Every
item, will be separately subjected to this condition.

First loss policy may be issued only under the
following circumstances :
(i) Acceptance is only considered in case of large

warehouse and stores where the value of stock is
considerable and where stocks involved are of
substantial and of bulky nature, whose total loss is a
remote possibility.

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