Page 199 - Misc Ebook IC 78

Miscellaneous Insurance

the intrinsic value may be small compared to the
sentimental or personal value which the owner of the
article has with them. Hence, an agreement of the
value relieves the insured and the insurers of the onus
of deciding an adequate insurable value and avoid
disputes.

Partial losses under valued policies are settled in the
same manner as in ordinary policies. For example a new
part being fixed in the place of all lost or worn out part
would attract depreciation.

Q2. Explain the following, under the Personal
Accident type of insurance:

(i) On duty/off duty cover -
(a) On Duty cover - If the Personal Accident cover is
required only for the restricted hours of duty and
not for 24 hours, the premium is reduced to 75%.
This covers accidents to the employees arising in
the course of employment only.
(b) Off Duty cover - If the Personal Accident cover
is required only for the restricted hours when the

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