Important Points for IC 57 - Fire and Consequential Loss Insurance Exam
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The reinstatement value policy provides a basis of fixing sum insured on the fire policy form with a Reinstatement Value memorandum incorporated therein.
Reinstatement Value Policy may be extended to cover additional cost of reinstatement incurred by the insured to comply with regulations enforced by Authorities by incorporating the Local Authorities clause in the policy.
A declaration policy is a fire policy with a Declaration clause attached to it. The insured can fix a ?provisional sum insured? which represents the highest value of stocks at any point of time during the policy period.
Floating policies are granted to cover under a single policy stocks which fluctuate between different locations.
Some of the clauses for special purposes commonly used in fire insurance which can be modified according to specific requirements are i. Agreed bank clause, ii. Contract price insurance clause, iii. Designation of property clause
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