Page 280 - Misc Ebook IC 78

The Insurance Times

Indemnity Insurance policy contains a provision for
an 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 automatic reinstatement of the sum insured
on payment of a loss, and the insured has to pay a
pro-rata additional premium for the said
reinstatement.

The reinstatement can, however, be effected for a
total amount not exceeding the original sum insured,
under the policy, that is the liability of the insurers
will be limited to twice the respective sum insured
in any one period of insurance and to the respective
sum insured in respect to any looses caused by the
omission of any one person. The reinstatement

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