Page 423 - Misc Ebook IC 78

Miscellaneous Insurance

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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