Page 28 - The Insurance Times February 2025

b) Net Profit from the last audited financial accounts to (i) Period of interruption: 90 days
be considered as Agreed Net Profit. (ii) Per day Agreed Gross Profit: Rs.34,247/-
c) Agreed Gross Profit = Agreed Standing Charges Plus
(iii) Indemnification= 90days X Rs.34,247= Rs.30,82,230/-
Agreed Net Profit (In case of Net loss, Agreed Gross
Profit= Agreed Standing Charges minus Net Loss)
This method of "Indemnification as agreed" will be easily
d) Per day Agreed Gross Profit = Agreed Gross profit di- understood by the customers and the members of distribu-
vided by 365. tion channel. It also offers faster payouts than the existing
e) Indemnity Period = Indemnity Period is the duration BI insurance.
during which commercial production will commence
from the date of incident; to be limited to 12 months. Section III
f) Sum Insured = Per day Agreed Gross Profit multiplied Burglary and House Breaking
by Indemnity Period of 12 months.
Subject matter of Insurance:
g) Period of interruption of business = Date of commer- Plant and Machinery, Stocks, Raw material, semi-finished,
cial production minus date of Loss. stock in process and finished stock.

Indemnification = Period of interruption of business multi-
Loss or damage to property by theft involving entry into or
plied by Per day Agreed Gross Profit.
exit from the insured premises by forcible and violent means
or following assault or violence or threat thereof to the in-
Condition of Average is not applicable.
sured or any employee of the insured or member of the
insured's family.
Illustration:
Section IV
Underwriting Stage:
Relevant data for the financial year 01.4.2022 to Money Insurance
31.3.2023: Money - in- Transit and/or in safe and/or in steel cupboards,
(i) Net Profit: Rs.25,00,000/- Cash box and in such other places under lock and key
(ii) Standing Charges identified and agreed: Rs. (covering all business transactions) loss due to any accident
1,00,00,000/- or misfortune subject to limits of liability specified in the
schedule.
Policy issued from 1.10.2023 to 30.9.2024
(i) Agreed Standing Charges: Rs.1,00,00,000/- Section V
(ii) Net Profit: Rs.25,00,000/- Machinery Breakdown of selective machines.
(iii) Agreed Gross Profit: Rs.1,00,00,000/-+Rs.25,00,000/- = Loss or damage due to unforeseen and sudden accidental
Rs.1,25,00,000/- physical damage caused by and / or solely due to the me-
chanical and / or electrical breakdown.
(iv) Per day Agreed Gross Profit: Rs.1,25,00,000 /365=
Rs.34,247/-
Section VI
(v) Indemnity Period: 12 months
Electronic Equipment and Appliances including
(vi) Sum Insured: Rs34,247 X 12 = Rs.1,25,00,000/-
Laptop (selective basis)
(vii) Premium to be charged on this Sum Insured.
Loss or damage to Electronic Equipment caused by unfore-
seen and sudden accident from any cause other than those
Assessment of loss: specifically excluded.
(i) Date of loss: 1.1.2024
(ii) Date of resumption of commercial Production: Loss or damage to External Data Media and/or costs of
31.3.2024 restoring information and data stored therein.

Assessment of Claim: All risk cover (with standard exclusions) for Laptop.

26 February 2025 The Insurance Times