Claim Appraisement Clause

If the aggregate claim for any one loss does not exceed five per cent (5%) of the sum insured by the item or items affected (whichever may be the less) no special inventory or appraisement of the undamaged property shall be required.

If two or more buildings be included in a single item, this provision shall apply to the range of buildings insured by this item.

For the purpose of this clause, the term “Item” shall be held to apply to the total sum insured on buildings and/or contents by the items affected.

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One Comment on “Claim Appraisement Clause”

  • Michelle wrote on 4 October, 2018, 15:26

    I have a question, is it the total claim amount for the loss to be compared with the total sum insured, or is it the total claim amount for each insured item with the corresponding sum insured?

    For example:

    Sum insured:
    – Buildings: USD 500,000
    – Machinery & equipment: USD 1,000,000
    – Stock: USD 500,000
    Total sum insured: USD 2,000,000

    Claim amount:
    – Buildings: USD 50,000
    – Machinery & equipment: USD 300,000
    – Stock: USD 0
    Total claim amount: USD 350,000

    Then when it comes to verification of adequacy of sum insured, will it be to consider the total claim amount for the loss (USD 350,000) against the total sum insured (USD 2,000,000), or will it be to consider each item seperately (i.e USD 50,000 vs USD 500,000 for buildings, USD 300,000 vs USD 1,000,000)?

    Thank you in advance for your kind clarification.

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