Inflation Provision Escalator

INFLATION PROVISION ESCALATOR – 10% #

In consideration of the payment of an additional premium produced by applying the specified percentage (10 % of inflation) to the first or the annual premium as appropriate to the item(s) as specified in the Schedule, the Sum(s) Insured thereby shall, during the period of insurance, be increased each day by an amount representing 1/365th of the specified perecentage increased per annum.

Unless specifically agreed to the contrary the provision of this clause shall only apply to the Sums Insured in force at the commencement of each period of insurance.

At each renewal date the Insured shall notify the Insurers of :

1. the sums to be insured under each item, but in the absence of such instructions the sums insured under the items shall be those stated on the Policy (as amended by any endorsements effective prior to the aforesaid renewal date) to which shall be added the increases which have been granted under this clause during the period of insurance up to that renewal date, and
2. the specified percentage increase(a) required for the forthcoming period insurance, but in the absence of instructions to the contrary prior to renewal date the existing percentage increase shall apply for the period of insurance from renewal.

All the conditions of the Policy except insofar as they may have hereby been expressly varied shall remain the same.