Page 369 - Misc Ebook IC 78

Miscellaneous Insurance

jute, rubber etc, where the fluctuation in values take
place frequently.

The proposer has to state the sum to be insured in
advance to calculate the provisional premium. Again,
he has to declare the value of stock held by him every
month end (for pre-ceding 30 days).

After the expiry of the policy, the average monthly
declaration is calculated and the actual premium payable
is obtained by applying the rate percentage on the
average value.

The provisional premium is then adjusted with the actual
premium, and the premium is then refunded if necessary
after retaining a certain minimum amount by the insurer.
The main advantage is that this cover provides the insured
with an affordable cover. Some of the main conditions
are:
(a) If the insured omits to make a declaration for a

month, the sum insured is taken to be as the
declaration for the month.

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