COVER OF FULL REPLACEMENT VALUE

COVER OF FULL REPLACEMENT VALUE

It is agreed and understood that otherwise subject to terms, exclusions, provisions and conditions contained in the Policy or endorsed thereon, where an insured item is totally destroyed or damaged, the basis upon which the amount payable under the Policy is to be calculated shall be the full replacement value of the item destroyed or damage.

“Replacement Value” shall mean the costs which would have to be incurred immediately before destruction of or damage to an insured items for replacing the destroyed or damage item by a new item of similar kind, capacity, size and quality.

PROVIDED THAT

– The replacement work shall be commenced and carried out with reasonable dispatch, otherwise no payment shall be beyond the amount which would have been payable under the Policy if This Endorsement had not been incorporated therein:

– No payment shall be made beyond the amount which would have been payable under the Policy if this Endorsement had not been incorporated therein, if any time of destruction of or damage to the Insured item such destruction or damage is covered by other insurance effected by or on behalf of the Insured, which is not based on reimbursement of the full replacement value.

– The item involved shall be no older than 5 (five) years at the time of loss, calculated from the year of construction indicated in the list of machinery attached to the insurance contract; but no payment shall be made beyond the amount which would have been payable under the Policy if this Endorsement had not been incorporated therein, if at the time of destruction of or damage to the insured item the manufacturer has ceased production of the respective model or if such model is no longer available as a new item from the manufacturer’s or supplier stock;

The amount payable for the replacement of the destroyed or damage item shall not exceed the sum insured set opposite to that item in the Schedule of the Policy.  

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