EXTRA COST OF REINSTATEMENT

EXTRA COST OF REINSTATEMENT
(APPLICABLE TO BUILDINGS, MACHINERY, PLANT AND CONTENTS; OTHER THAN STOCKS)

This Policy extends to include the extra cost of reinstatement (including demolition or dismantling) of damaged property necessarily incurred to comply with the requirements of any Act of Parliament or Regulation made thereunder or any By-Law or Regulation of any Municipal or other Statutory Authority; subject to the following Provisions and subject also to the terms, Conditions and Limits or Sub Limits of Liability of this Policy.

Provisions

(i) The work of reinstatement (which may be carried out wholly or partially upon any other sites and in any manner suitable to the requirements of the Insured, subject to the liability of the Insurer not being thereby increased), must be commenced and carried out with reasonable dispatch, failing which the Insurer shall not be prejudiced by the said delay and shall not be liable to make any payment for additional expenses incurred by the said delay.

(ii) The amount recoverable shall not include the additional cost incurred in complying with any such Act, Regulation, By-law or requirement with which the Insured had been required to comply prior to the happening of the damage.

(iii) All other Industrial Special Risks and/or Fire and Named Perils insurances covering the property effected by or on behalf of the Insured shall be on a similar basis.

(iv) Where no sub limit is stated in the policy schedule for extra cost of reinstatement and the cost of reinstating damaged property is less than fifty per cent (50%) of that which would have been the cost of reinstatement if such property had been destroyed, the amount recoverable hereunder shall be limited to the extra cost necessarily incurred in reinstating only that portion damaged.

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