Claim Under Consequential Loss of Profit (CLOP) Policy
In one of the claims under CLOP policy after restoration of Plant, the Surveyor repudiated the claim on the ground that “Insured should have produced more in future to compensate the loss of production during Indemnity period” as the Indemnity period is of short duration say 15 days. It was brought to the notice of the Surveyor there is no such condition in the policy but the Surveyor was adamant to repudiate the claim. The matter was taken up with the Insurer who agreed that on this ground the claim cannot be repudiated.
Therefore it is advised whether the claim is being repudiated, the reason of repudiation may be verified with the terms and conditions of the policy.