4. Section-A MATERIAL
DAMAGE
In consideration of the Insured, having paid the
first premium mentioned in the said Schedule to
the Company
Company will indemnify the Insured for the
property accidentally physically lost, destroyed or
damaged
the liability of the Company shall in no case
exceed in respect of each item the sum
expressed in the said Schedule limited to the
proportion set against its name
The Company agrees subject to the terms,
exceptions, limits and conditions contained
herein or endorsed hereon
Section- B BUSINESS
INTERRUPTION
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5. 1. change in temperature
2. subsidence, ground heave, landslip,
erosion, settling or cracking
3. of manufacture, alteration or repair
4. handed over by a signed certificate of
acceptance I completion
5. money, cheques, bullion, precious stones,
negotiable instruments
6. animals, growing crops or standing timber
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6. 6. vehicle, locomotives, water craft, aircraft or
property in water craft or aircraft.
7. documents, manuscripts, business books or
computer systems records
8. property held in trust
9. consequential loss of any kind or
description whatsoever
10. dishonesty, fraudulent action, trick,
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7. 12. storm, cyclone, water, hail, frost or snow to property
UNLESS so described and specifically insured as a separate
item in the Schedule
13. theft unless accompanied by violence to persons
14. unexplained or mysterious disappearance or shortage
in inventory
15. Contamination or pollution
16. wear and tear
17 . loss of weight, change in flavour, colour, texture
18. the cost of normal upkeep or normal making good
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8. 19. any actual or alleged liability whatsoever for
any claim or claims
20. amount stated in the Schedule as the Deductible
21. war, invasion, act of foreign enemy, hostilities
22. confiscation, nationalization
23. nuclear weapons material, ionizing radiations
24. dams, reservoirs, piers, wharves, jetties, bridges
or tunnels
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9. 9
1. DEFINITION
2. MISDESCRIPTION
3. ALTERATION
4. CANCELLATION
4. SAFEGUARDS
AND MAINTENANCE
6. CLAIMS
7. COMPANY RIGHTS
AFTER A LOSS
8. FORFEITURE
9. TIME LIMITATION
10. REINSTATEMENT
11. SUBROGATION
12. MARINE
13. CONTRIBUTION
14. AVERAGE
15. ARBITRATION
16. OBSERVANCE OF
CONDITIONS
17. AUTOMATIC
INCREASE CLAUSE
10. Data Recognition Endorsement
Cyber Exclusions
War & Terrorism Exclusion
Claim Control Clause
Agreed Bank Clause
72 Hours Clause
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12. Repairs and Replacement usually take
time. During that time business is at
risk from :
• LOSING ORDERS / CUSTOMERS
• LOSING INCOME / PROFIT
• ON GOING COSTS/ EXPENSES RENT,
RATES, INSURANCE PREMIUM,
• PAYING SALARIES OF KEY
EMPLOYEES
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13. The policy continues to pay:
ongoing costs and expenses (impossible
from reduced income due to loss)
making up of the shortfall of the net profits
cost of the alternative premises
paying for the extra expenses incurred to
prevent or reduce the loss of income such
as
overtime payment,
cost of provisional repairs,
installation of the temporary
machinery,
cost of the sub-contractor
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14. If turnover reduces in proportion to the
reduction in expenses, no BI policy is to be
purchased.
If turnover reduces by 50 % and expenses
40%, BI policy is to be purchased for
indemnifying the Insured to support
particular expenses.
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15. List of Expenses:
•Purchases- Power-Packaging
•Remuneration-Rent-Rates
•Advertising
•Lighting
•Heating
•Depreciation
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17. Indemnity Period (IP):
The period during which The Business results are
affected due to the Damage, beginning with the date
of the Damage and ending no later than the
Maximum Indemnity Period (MIP).
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18. Maximum Indemnity Period (MIP):
The number of months stated in The Schedule,
unless amended in any additional contingency.
Example:
Rebuilding -09 months
Replacing Raw Material & Machinery- 12 months
Training new operative- 01 month
So, reproduction is possible in 13 months
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