IC 11 - Practice of General Insurance Exam Study Notes

Reinstatement Value Policies - Under Reinstatement Value Policy however, the insurers would pay cost of replacement of the damaged property by new property of the same kind. Issued for covering buildings, plant, machinery and furniture, fixture, fittings. However Stocks are covered on market value basis
Declaration policy - Stocks stored in warehouse can be covered. As such stocks are subject to fluctuation in quantity the sum insured should be the highest value that is expected to be stored in the godown during the period of policy. insured has to declare the value of his stocks at agreed intervals
Floater Policies may be issued for stocks of goods which are stored at various specified locations under one sum insured. also called fire floater policies as the sum insured floats over multiple locations
Consequential Loss (CL) Policy [Business Interruption (BI)] - It provides indemnity for loss of what is termed as gross profit ? which includes Net Profit plus Standing Charges along with the increased cost of working incurred by the insured to get the business back to normalcy, as soon as possible to reduce the final loss
Burglary insurance - Loss of property following actual forcible and violent entry into the premises or loss followed by actual, forcible and violent exit from the premises or hold up.

Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points