REPLACEMENT VALUE CLAUSE

(Applicable only for equipments not exceeding 5 years old)

Notwithstanding the provisions of Memo 2 – Basis of Loss Settlement (b), it is hereby declared and agreed that in the event and Insured equipment not exceeding 5 years old is destroyed, the basis of upon which the amount payable under the policy is to be calculated shall be the cost of replacing the equipment of the same kind or type but not superior to or more extensive than the equipment when new.

Subject to the terms and conditions of the policy except insofar as they may be varied hereby.