Importance of “Agreed Bank Clause” under Fire Insurance
The question arises to whom the Insurer will pay the claim amount in case “Agree Bank Clause” is included in the policy but name of the banks are not incorporated in the policy and in other incident there are two policies of stocks where in one policy the name of the banks are incorporated but not in second policy. The claim has arisen in the second policy where name of the banks are not incorporated and the Insured is insisting to pay the claim directly to him as the banks name is not incorporated. But the Insurer is ready to make the payment to the Bank whose name is appearing first in the earlier policy as per note of condition (b) of the ‘Agreed Bank Clause’ of the Fire Policy. The Insured is not agreed for this and claim amount is pending for the last six months. The reason for not agreeing the payment to bank as that bank has declared the Insured’s account as “NPA” Non Performing Assets. It is always advisable to include the name of the bank to which the Insured is interested to get the payment, at serial number “1”. The Brokers should the advice their clients accordingly.