Page 121 - Misc Ebook IC 78

Miscellaneous Insurance

cover sections A to E of the policy. This basic sum
insured cannot be increased during the currency of
the policy but can be increased at the renewal of
the policy. For the sections F,G and H, lower sum
insured is applied as a certain percentage of the
basic sum insured.

(iii) Reinstatement - The Banker's Indemnity
Insurance policy contains a provision for an if
the insured bank requires a higher limit of sum
insured (higher than the basic sum insured), in
respect of section A and/or B of the policy, this
is permissible on the payment of additional
premium.

This increased sum insured is called the additional
sum insured. Both the basic and additional sum
insured under section A and/or B are specified in
the schedule of the policy automatic reinstatement
of the sum insured on payment of a loss, and the
insured has to pay a pro-rata additional premium
for the said reinstatement.

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