Terms

Question 1

Condition of average

Answer 1

the insurance term used when calculating a payout against a claim where the policy undervalues the sum insured.

Question 2

Formula

Answer 2

Claim amount = (Actual loss × Insured amount) / Value of goods or property at the date of loss.

Question 3

Indemnity to principle

Answer 3

if a claim is paid, the beneficiary must be the person who hired the tradesmen to do the work, and not the tradesmen.