Insurance Issue of the Week

Insurance Issue of the week -19

Whether Money insurance is adjustable Policy?

Yes, it is adjustable policy. Under Money Insurance policy the declaration is to be made at regular interval. Sometimes the limit of sum insured may be exhausted during the currency of the policy and the question arises whether any claim arising after exhaustion of the limit is payable or not. The claim is payable as the policy has the adjustable clause. Some insurers are excluding the adjustable clause but all are requested to insist to include this clause. The adjustable clause is applicable provided the sum insured should be equal or more than the previous year sum insured/declaration and premium is paid in one go not in instalments. Under adjustable clause, at the end of the policy the premium will be adjusted either insured has to pay if the total declaration is more than the sum insured or recover from the Insurer if the total declaration is lower than the sum insured.

Kindly insure accordingly.

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