What is mean by floating policy in fire insurance?
Floating policy is a policy which covers loss by fire caused to property belonging to the same person but located at different places under a single sum and for one premium. Such a policy might cover goods lying in two warehouses at two different locations. This policy is always subject to 'average clause'.
What is open policy?
1) The open policy is issued to cover several shipments/ despatches for the period of 12 (twelve) months based on the Sum Insured sufficiently large and adjusted against the value of each cargo in a reducing balance method. 2) Traders having regular despatches are interested to take the benefit of the Open Policy.
What is valuable policy?
A valued policy is an insurance policy in which the amount payable for a claim is agreed upon when the policy is issued, and is not related to the actual value of a loss. With a valued policy, the insurer pays a specified amount of money to or on behalf of the insured upon the occurrence of a defined loss.
What is policy proof of interest?
: a marine insurance policy provision whereby the underwriter agrees to dispense with all proof of insurable interest with the policy being stamped accordingly.
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