Common use of Indemnity Basis Clause in Contracts

Indemnity Basis. Sum Insured shall be equal to the cost of replacement of the insured property by new property of the same kind and same capacity by deducting proper depreciation from the replacement value of the item. The SI Limit for contents shall be up to 10% of building sum insured where building sum insured is opted on agreed value basis and up to 50% of building sum insured where building sum insured is opted on reinstatement or indemnity basis, subject to the loss limit of Rs. 10 lakhs. In cases of contents only policies the sum insured limit shall remain uptoRs. 10 Lakhs.