Insurance Policy Extract - Mark IV Industrial Special Risks - Basis Of Settlement On Payroll
Item no. 3
The insurance under this item is limited to loss in respect of Payroll and the amount payable as indemnity thereunder shall be:
a. In respect of Reduction of Turnover:
i during the portion of the Indemnity Period beginning with the occurrence of the Damage and ending not later than the number of weeks thereafter specified in the Schedule: the sum produced by applying the Rate of Payroll to the Shortage in Turnover during the said portion of the Indemnity Period less any saving during the said portion of the Indemnity Period, through reduction in consequence of the Damage, in the amount of Payroll paid;
ii. during the remaining portion of the Indemnity Period: the sum produced by applying the Rate of Payroll to the Shortage in Turnover during the said remaining portion of the Indemnity Period less any saving during the said remaining portion of the Indemnity Period, through reduction in consequence of the Damage, in the amount of Payroll paid; but not exceeding the sum produced by applying the percentage of the Rate of Payroll specified in the Schedule to the Shortage in Turnover during the said remaining portion of the Indemnity Period, increased by such amount as is deducted for savings under the terms of Clause a.i.
Note: At the option of the Insured, the number of weeks referred to in clause a. i above may be increased to the number of weeks specified in the Schedule under the heading 'Consolidated Period'; provided that the amount arrived at under the provisions of clause a.ii shall not exceed such amount as is deducted under clause a. i for savings effected during the said increased number of weeks. .
b. In respect of Increase in Cost of Working:..
So much of the additional expenditure described in clause b. of Item I as exceeds the amount payable thereunder, but not more than the additional amount which would have been payable in respect of Reduction in Turnover under the provisions of clauses a. i and ii of this item had such expenditure not been incurred. Provided that if the Declared Value of Insured Payroll at the commencement of each Period of Insurance be less than the sum produced by applying the Payroll Limits to the sum produced by applying the Rate of Payroll to the Annual Turnover (or its proportionately increased multiple thereof, where the Indemnity Period exceeds 12 months), the amount payable shall be proportionately reduced.
Insurance Policy
Country: - Australia.
Policy Description: - Mark IV Industrial Special Risks (ISR) policy.
Insurer: - Various.
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