Average Clause Clause Samples
An Average Clause is a provision in insurance policies that adjusts the payout in the event of underinsurance. If the insured value of the property is less than its actual value at the time of loss, the insurer will only pay a proportion of the claim equivalent to the ratio of the insured amount to the actual value. For example, if a property worth $100,000 is insured for only $50,000, and a $20,000 loss occurs, the insurer would pay only $10,000. This clause ensures that policyholders are incentivized to insure their property for its full value, thereby preventing underinsurance and distributing risk more fairly between the insurer and the insured.
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Average Clause. If closing stock is greater than the amount of policy Amount of Loss x Policy
Average Clause. An average clause in a fire insurance contract is applicable when there is under insurance and it is applied to discourage under insurance. The average clause limits the liability of the insurer to that proportion of actual amount of loss which the sum insured bears to the total value of stock affected by fire. _ Cr To, Opening Stock To, Purchases (Net) To, Wages To, Carriage inwards To, Manufacturing Expenses To, Any other direct Expenses To, Gross Profit (% on Sales) Rs ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ xxxxx By, Sales (Net) By, Closing Stock on the date of fire (balancing figure) Rs ▇▇▇▇▇ ▇▇▇▇▇ XXXX XXXX
Average Clause. The Principle of Indemnity The Principle of Contribution The Principle of Subrogation
Average Clause. If at the time of loss or damage The Property Insured is collectively of a greater value than the total sum insured, You shall be considered as being Your own insurer for the difference and bear a rateable share of the loss accordingly. It is a condition of this insurance that You will act with reasonable dispatch in all circumstances within Your control.
Average Clause. With respect to Special Property with Sub-limits of Insurance as described under Coverage C - Personal Property, the Average Clause applies:
i) to each class of Special Property having a Sub-limit that exceeds $10,000, except for Fine Arts;
ii) to Special Property Classified as Fine Arts when the Sub-limit is greater than $25,000. The Average Clause requires the Insured shall obtain and maintain insurance in an amount representing at least eighty percent (80%) of the Replacement Cost of the item. Failing to do so, the Insured shall be a coinsurer to the extent of an amount sufficient to make the aggregate insurance equal to eighty percent (80%) of the Replacement Cost, and in that capacity shall bear his/her proportion of any insured loss that may occur.
Average Clause. If the covered property shall, at the commencement of the cover period immediately preceding an occurrence, be collectively of greater value than the declared value thereon, the participant shall be considered as being their own company for the difference, and shall bear a rateable share of the loss accordingly. If the covered property shall, at the time of reinstatement, be collectively of greater value than the declared value thereon, the participant shall be considered as being their own company for difference, and shall bear a rateable share of the loss accordingly.