Important Points for IC 57 - Fire and Consequential Loss Insurance Exam
Page 2 Of 56
Go to:
The term 'market value' or 'actual cash value' means, for insurance purposes, the present cost of construction of similar building, after deducting from the cost, depreciation based on age, usage, maintenance etc.
Book value is the value of the property as indicated in the insured?s books of accounts. It is arrived at by applying depreciation on the original cost of the property.
Reinstatement value is the value at which the damaged property can be reinstated or replaced by new property of the same kind, without deducting depreciation.
The term ?fire?, for insurance purposes, means actual ignition or burning, under accidental or fortuitous circumstances, so far as the insured is concerned.
An explosion is 'a sudden violent burst with a loud sound'.
MODELEXAM® 
www.realsoftinfoplan.com