Consequential Loss (Fire) Insurance Policy
The policy operates in the event of -
damage
to the property of the Insured due to any peril covered under Standard
Fire and Special Perils Policy causing interruption to the business.
The Policy compensates
- Loss of Gross Profit due to a reduction in turnover
- Increased cost of working incurred in minimising that loss of Gross Profit
- The basis of sum insured is the annual net profit of the business as per previous year's accounts plus the fixed expenses.
- Gross Profit means the sum of net profit and standing charges.
-
Net Profit is the net trading profit excluding capital receipts,
accretions and outlay chargeable to capital after making provisions for
all standing charges.
- Standing Charges mean all expenses which do not diminish proportionately with a reduction in turnover.
The policy does not cover-
- Excess under material damage policy
- All exclusions under Standard Fire and Specials Perils Policy
- Inventory shortage
- Loss of goodwill
- Loss of market
- War and Nuclear perils
You can opt for the following extensions-
- Wages
- Lay-off and retrenchment compensation and Notice Wages Liability
- Auditor's Fees
- Supplier's extension and customer's extension
- Insured's property stored at other locations
- Public utilities extension
Indemnity
Period commences with the date of the damage and lasts till such time
as the business is restored to its pre-damage level or the period
stipulated in the policy which ever is earlier. The policy compensates
for earnings lost during the Indemnity period.
Note : The rates and terms are governed by the Tariff |
