ADJUSTMENT OF PREMIUM CLAUSE
a. The Premium shown is provisional and is calculated on the Declared Values of:
i. Property Insured,
ii. Gross Profit and Insured Payroll, on the day of commencement of each Period of Insurance.
b. The Insured undertakes to declare to the Insurer(s) within a reasonable time after the day of expiry of the Period of Insurance:
i. the value of Property Insured on the day of expiry of the Period of Insurance. For the purpose of this declaration, stock-in-trade and/or merchandise shall be taken at its average value during the Period of Insurance.
ii.the amount of the Gross Profit earned and Payroll paid, in accordance with the cover afforded in the respective items of Section 2, in the course of the Business during the accounting period of 12 months most nearly concurrent with the Period of Insurance.
a. The provisional premium shall be adjusted by payment to the Insurer(s) of an additional premium or by allowance to the Insured of a return premium, as the case may be, calculated at the agreed rate on:
i. Fifty per cent (50%) of the difference between property declared in accordance with clauses a.i and b.i.
ii. The full agreed rate hereunder on the difference between the amounts declared under clauses a.ii and b.ii.
d. It is agreed to make allowance for any abnormal fluctuation in values and to charge a premium commensurate with the risk, such premium to be agreed between the parties to this agreement.
e. The Declaration of Values at the expiry of the Period of Insurance declared in accordance with this memorandum shall not be reduced as the result of loss, destruction or damage in respect of which a claim has been paid or is payable under this Policy.
Insurance Policy
Country: - Australia
Policy Description: - Mark IV Industrial Special Risks (ISR) Policy
Insurer: - Various
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