Output Replacement (Plant & Machinery)

OUTPUT REPLACEMENT (PLANT & MACHINERY) #

Notwithstanding anything contained to the contrary herein, it is hereby declared and agreed that, if the interest insured under this policy constitutes a property which has a measurable output and which is capable of replacement with a new item or items which perform a similar function, then such property shall be valued for insurance purpose as follows, and values for the settlement of any loss or damage in respect thereof shall be on the same basis.

If property lost, destroyed or damaged is to be replaced by an item or items which have a greater total output and the replacement value is no greater than the value insured of the property damaged, destroyed, then no deductible shall be made from any claim for the improved output.

In the event of partial loss or damage where properties to be repaired, this policy shall pay the cost of restoration of the damaged property to a condition substantially the same but not better or more extensive than its condition when new and provided further that the liability of the insurers shall not exceed the sum representing the cost which the insurer could have been called upon to pay if such property had been wholly destroyed.