Page 380 - Misc Ebook IC 78

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(vi) Selection of benefits &sum insured
(vii)Declaration

Sum Insured: Sum insured though is selected by the
insured, the insurers do exercise some control. The sum
insured is chosen according to the average monthly
income of the insured. E.g- a policy of Rs 1 lac cannot
be granted to a person earning Rs 1000 per
month,because in the event of temporary disablement
his weekly benefit becomes Rs 1000( monthly Rs 4000)
which is disproportionate to his monthly salary. The sum
insured can be granted upto 60-72 months earning of
the insured.

Q2. Write short notes on :

(a) Agricultural Pump set Policy -
This insurance is granted on the Centrifugal Pump sets
used for agricultural purposes only. The cover is for any
unforeseen and sudden physical damage to pump sets
by (i) fire, lightning (ii) riot, strike, malicious damage,
terrorism (iii) mechanical, electrical breakdown (iv)
burglary by violent forcible entry into the locked enclosure

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