Fire and Consequential Loss Insurance - IC 57 Exam Study Notes

On payment of additional premium, the C.L. Policy can be extended to include 'Add-on' covers included in the Fire policy such as earthquake, spontaneous combustion, etc.
The basic fire policy covers gross profits which mean net profit plus insured standing charges. The policy may, however, cover additional items such as wages, lay-off / retrenchment compensation and auditor?s fees.
Methods of insuring wages iv. Insurance for full indemnity period; v. Annual method; vi. Period or pro rata basis; vii. Dual basis of insurance
Under the Industrial Disputes Act, 1947, a statutory payment has to be made by employers as per the provisions incorporated in the Act to such workers, as are laid off and / or retrenched in the event of closure of manufacturing concern due to 'Fire' or the operation of any other insured peril.
Under condition 3 of the policy, the insured is required at his own expense to produce books of account and other documentary evidence to support his claim for which he may ask his auditors to produce the information required. The auditor?s fees for this work can be insured.

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