Fire Insurance Clauses for Stocks and Other Contents (Part 3)

On my earlier postings, I have indicated the relevant clauses that can be applied to the insurance on the buildings and machineries.

Now let us examine the appropriate clauses that can be applied to the insurance on the stocks and office furnitures, fixtures and fittings and personal effects and other contents therein.

1.0  Stock Declaration Clause
(on stock with minimum SI of RM500,000 per location. Provisional premium of 75% is charged on the estimated annual stocks with adjustment in premium which can be additional premium or refund premium depending on the difference between the estimated annual stocks and the actual annual stocks declared)

2.0  Other Contents Clause
(Includes loss or damage to items not otherwise specified in the policy, in this case (a) money, stamps etc up to RM1,000 (ii) Documents, manuscripts etc up to RM1,000 (iii) Computer systems records for the value of the materials etc up to RM1,000 (iv) patterns, moulds, designs etc up to RM1,000 and (v) personal effects, clothing tools etc up to RM1,000. No premium charged unless specifically insured as separate items)

3.0 Temporary Storage Clause
(includes properties which form part of the stock or materials in trade which are temporary stored anywhere including in transit, all within Malaysia, Singapore and Brunei for a maximum of 6o days. Subject to a Limit of 10% of SI on stock or RM500,000 whichever is lower. No premium charged unless specifically insured as another permanent location - advisable if storage shall exceed the 60 days period)

4.0 Contract Price Clause
(Applicable only to goods which are custom made on contract basis where a profit margin has been added to the manufacturing cost. In the event of the goods already manufactured but not yet delivered to the customers, shall be desctroyed by an insured peril, and the sale contract is cancelled by such reason, the Insurer will pay the claim inclusive of the said profit which the Insured would have made if not because of the destruction. Sum Insured on the SIT must reflect the COG + the profit margin)

5.0 Vehicle Load Clause
(Occassionally, stocks in container may arrived in a vehicle which may be forced to park outside the warehouse, overnight,  pending the unloading of the stocks into the building, the following day? A fire originated from the warehouse and spread to the stocks placed on the said vehicle? The stocks here are neither in the insured warehouse nor insured as goods in the open.This is where the Vehicle Load Clause comes in handy.  The criteria for a claim here is that the goods must be on the vehicle at the material time of happening, not just placed on the ground which will come under the Goods in the Open, if specifically insured.Claim is limited to the value of goods contained in the damaged container). Free Clause.

6.0 Brand, Label & Trade Mark Clause
(This applies to the salvage of the goods. One would perceived that goods that are branded or trade marked would fetch a higher salvage value than others in a claim settlement. Regardless of either, claims for salvage shall be the "face" value only..example whether the brand of the shirt is "Dunhill" or "Ah Beng", it is just a shirt, nothing more nothing less). Free Clause.

7. Internal Removal Clause (for office appliances)
8. Temporary Removal Clause (for office appliances)
9. Designation Clause
10.Removal of Debris Clause
11.Automatic Hold Cover (Properties in New Locations) Clause
12.Appraisement Clause
(Note: Clause 7-12, please refer back to earlier postings on Clauses for Buildings/Machineries)