Wednesday, April 15, 2009

Floor, Space, Ratio Index Clause

“Subject to the terms and conditions of this policy in the event of any building being damaged so as to constitute total loss or constructive total loss and as a result of the exercise of Statutory powers and/or authority by any Government Departments Local Government or any other Statutory Authorities reinstatement of such building as before is prohibited and reinstatement is only permissible subject to a reduced floor, space ration index.
The Insurers agree to pay in addition to any amount payable on reinstatement of such building the difference between:
a. the actual cost of reinstatement incurred in accordance with the reduced floor, space ratio index and
b. the cost of reinstatement which would have been incurred had a reduced floor space ratio index not been applied.

In arriving at the amount payable under (a) and (b) above any payments made by the Insurers shall include the extra cost of reinstatement including demolition or dismantling of the property Insured necessarily incurred to comply with the requirements of any act of Parliament or Regulation made thereunder or any Bye-law or Regulation of any Municipal or other Statutory Authority”

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