Page 173 - Misc Ebook IC 78

Miscellaneous Insurance

(j) Differences regarding the amount of claim to be
referred to arbitration.

(k) If liability for any claim is disclaimed and the insured
does not, within 12 calendar months from the date
of receipt of such notice of disclaimer, notify the
company in writing that he does not accept the
disclaimer and intends to receive his claim, the claim
shall be deemed to have been abandoned.

Q5.a) In respect of Banker's Blanket Indemnity
insurance, explain the following:

(i) Basic Sum Insured
(ii) Additional Sum Insured
(iii) Reinstatement of sum insured
(iv) Excess
Ans. Basic Sum Insured - this is the original sum insured or
the limit of liability selected by the proposer to 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.

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