Page 370 - Misc Ebook IC 78

The Insurance Times

(b) The insurers liability is restricted to the sum insured,
which may however, be altered even after the
issuance of the policy by prior mutual agreement.

(c) The condition of average is applicable where the
insurer pays only on pro-rata basis, if the value of
stocks on loss is more than the sum declared.

(ii) Floater Policy - This policy covers goods in more than
one location covered under a single sum insured. For
example, a sum of 10 lacs may be floated over 5
godowns. The subject matter of insurance however, has
to be identical in all locations, and all the chosen locations
should be in same city, town or village.

They are rarely issued and even when issued, are
restricted to well known clients with excellent claims
record and low moral hazard. This policy is useful when
the insured find it difficult to declare separate sum insured
for individual locations.

(iii) First Loss Policy - Type of property - For certain
bulk commodities stored in loose like sulphur, rock

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