Page 167 - Misc Ebook IC 78

Miscellaneous Insurance

burglary. If the insurers agree to such a request, a First
Loss Policy is issued. The policy insures the property
for a specific sum only, which is the estimated maximum
likely loss in any one occasion. The sum insured is
expressed as a percentage of the full value.

(iii) Underinsurance- 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.

(iv) Premium Computation- No definite rules can be laid
down for rating purpose, as this depends from case to
case, and from circumstances to circumstances.
However the factors to be considered are :

(i) The full value of the property to be insured.

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