Page 198 - Misc Ebook IC 78

The Insurance Times

In case of differences arising in respect of the claim
amount, the insured can move to the arbitrator for
redressal.

Ans.b) Valued policies , are usually agreed value policies, which
are the contracts where the sum insured is deemed to
be the actual value of the property. Claims under such
policies in respect of total loss are settled without any
adjustment which may otherwise arise on the adequacy
of the sum insured, its market value, etc.

Valued policies are issued mainly in respect of valuables,
paintings, pictures, curios, antiques and other works of
art. Valued policies may appear to be contrary to the
principle of indemnity, but legally the parties to the
contract agree to the measures of indemnity at the
inception of the policy instead of waiting till the claim
arises to assess the amount of loss payable.

One of the main reasons for the measure of indemnity
to be agreed in advance is that in respect of many
articles like stamps, curios, works of art, antiques, etc,

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