MR 508 – Cover of Full Replacement Value In Case of a Loss Due to Fire and Allied Perils

COVER OF FULL REPLACEMENT VALUE IN CASE OF A LOSS DUE TO FIRE AND  ALLIED PERILS #

It is agreed and understood that otherwise subject to the terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon and subject to the Insured having paid the agreed extra premium, where an insured item is totally destroyed or damaged beyond repair by fire and/or allied perils, the basis upon which the amount payable under the Policy is to be calculated shall be the full replacement value of the item destroyed or damaged.

“Replacement value” shall mean the costs which would have to be incurred immediately before destruction of or damage to an insured item for replacing the destroyed or damaged item by a new item of a similar kind, capacity, size and quality.

Provided that

• the replacement work shall be commenced and carried out with reasonable dispatch, otherwise no payment shall be made beyond the amount which would have been payable under the Policy if this Endorsement had not been incorporated therein;
• no payment shall be made beyond the amount which would have been payable under the Policy if this Endorsement had not been incorporated therein, if at the time of destruction of or damage to the insured item such destruction or damage is covered by any other insurance effected by or on behalf of the Insured, which is not based on reimbursement of the full replacement value as defined above;
• the item involved shall be no older than ……………….. years at the time of the loss, calculated from the year of construction indicated in the list of machinery attached to the insurance contract; but no payment shall be made beyond the amount which would have been payable under the policy if this Endorsement had not been incorporated therein, if at the time of destruction of or damage to the insured item the manufacturer has ceased production of the respective model or if such model is no longer available as a new item from manufacturer’s or supplier’s stock;
• the amount payable for the replacement of a destroyed or damaged item shall not exceed the sum insured set opposite to that item in the schedule of the Policy.

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Extra Premium

Section 1