Page 279 - Misc Ebook IC 78

Miscellaneous Insurance

Q3. Explain the following terms which are
relevant to the Banker's Blanket Indemnity
Insurance:

Ans. (i) 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 I insured.

(ii) Additional Sum Insured - 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.

(iii) Reinstatement of Sum Insured - The Banker's

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