Excess clause under any Insurance Policy
Sometimes, while the insurance policy is being issued to the Insured, the excess clause is not appearing in the policy. After the occurrence of the claim, the Insurer takes the plea that it is software problem and the “Excess Clause” is not appearing while policy print is taken from Inkjet printer otherwise under Dot matrix printer this clause is appearing. Whether in such circumstance the Insurer can apply the excess to settle the claim. Legally the Insurer cannot apply excess while settling the claim; the rest depends upon the many other factors.
A typical example of excess clause under Consequential Loss of Profit: The policy document issued to the Insured by the Insurer does not include the excess clause of 7 days in the policy. But the Insurer is producing the document under “Dot Matrix printer” where the excess clause is shown 7 days time excess and amount is also shown as 7 days gross profit of the annual gross profit (Annual Gross profit Rs 36,50,00,000/- and the amount of excess is considered Rs 70 lakhs) . The Insurer is insisting to apply the excess clause with amount which is incorrect as it is time excess not the amount excess. Practically, the output/turnover of first 7 days of the indemnity period is to be deducted.
So be careful in any claim.