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Fire insurance claim...

What is avq clause explain in layman's terms anyone Plssss......


Bala Chandar

Bala Chandar

CA Foundation

5K+

14-Jan-22

41

Answers (4)

And also .... What is salvage value,, and fire fighting exp.... Menas what........ Tell anyone .tq.......


Thread Starter

Bala Chandar

Bala Chandar

CA Foundation

5K+

14-Jan-22

Avg clause: Your stock was worth 10,000. But you took insurance of only 5,000 (you insured only half value) Now when you suffer a loss of say 4,000. Insurance company will apply average clause and compensate you with only 2,000 i.e. (5,000/10,000 x 4,000).


Sahibdeep Singh

Sahibdeep Singh

Moderator

14-Jan-22

Thread Starter

Bala Chandar

And also .... What is salvage value,, and fire fighting exp.... Menas what........ Tell anyone .tq.......

Salvage value - Value of destroyed goods Fire fighting expenses - Expenditure incurred to put the fire off


Sahibdeep Singh

Sahibdeep Singh

Moderator

14-Jan-22

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