11-10-2017 10:19 AM
What is the difference between the following sum assured selection options:
a. Agreed value basis,
b. Reinstatement basis
c. indemnity basis
11-10-2017 11:40 AM
Policies are provided on Reinstatement value basis and indemnity basis.
“Reinstatement basis” means the cost of replacing or reinstating on the same site, property of the same kind or type but not superior to or more extensive than the insured property when new as on date of loss.
" Indemnity basis" means the cost of construction on the date of loss on the same site of the Building of the same kind or type but not superior to or more extensive than the insured property when new less depreciation depending on the Age of the Building