Institute Second Hand Replacement Clause

INSTITUTE SECOND HAND REPLACEMENT CLAUSE #

In the event of loss or damage to any part or parts of an insured machine caused by a peril covered by the Policy, the sum Insured recoverable shall not exceed the cost of replacement or repair of such part or parts plus charges for forwarding and refitting, if incurred, but excluding duty unless the full duty is included in the amount insured, in which case loss, if any, sustained by payment of additional duty shall also be recoverable.

Provided always that in no case shall the liability of Underwriters exceed the insured value of the complete machine.

It is also noted and agreed that the replacement of such damage part or parts will be replaced with appropriate ’second hand’ part or parts.