Fire and Consequential Loss Insurance - IC 57 Exam Study Notes

Ex-gratia payments are claims which are paid as a matter of grace where the loss is outside the scope of the policy or the liability under the policy, in strict legal terms, is doubtful.
Value of a property may be defined as the worth of anything in terms of something else for which it can be exchanged either with other goods or in terms of money.
The term ?depreciation? refers to reduction in the value of the machinery due to usage, deterioration, wear and tear, rust, corrosion, metal fatigue etc.
The term ?betterment? refers to the superior qualities of the replaced machinery such as increased output, reduced consumption of power, lower costs of maintenance etc. due to technological progress and new research.
The term ?Stock-in-trade? refers to the merchandise (articles and commodities) which are held for sale in retail shops or in wholesale establishments, factories and also merchandise intended for sale and held in warehouses and godowns.

Important Points for IC 57 - Fire and Consequential Loss Insurance Exam