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Applicable to buildings, machinery, plant and all other property and contents; other than those specified in items (b) to (h) under Basis of Settlement).

This Policy extends to include the extra cost of reinstatement (including demolition or dismantling) of damaged property necessarily incurred to comply with the requirements of any Act of Parliament or  Regulation made thereunder  or any By-Law or Regulation of any Municipal or other Statutory Authority; subject to the following Provisions and subject also to the terms, Conditions and Limit (s) or Sub-Limits of Liability of this Policy.

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i) The work of reinstatement (which may be carried out wholly or partially upon any other site (s), subject to the liability of the Insurer (s) not being thereby increased), must be commenced and carried out with reasonable despatch, falling which the Insurer (s) shall not be liable to make any payment beyond the amount which would have been payable under this Policy if this memorandum had not been incorporated herein.

ii) The amount recoverable shall not include the additional cost incurred in complying with any such Act, Regulation, by-Law or requirement with which the Insured had been required to comply prior to the happening of  the damage.

iii) Co-Insurance shall not be applied to the amount recoverable under this memorandum and any amount  specified shall not be taken into account for co-insurance purposes in  terms set out in any clause contained in this Policy

iv) All other Industrial Special Risks and/or Fire and Named Perils insurances covering the property effected by or on behalf of the Insured shall be on a similar basis.

v) If the cost of reinstatement of damaged property insured is less than fifty percent (50%) of that which would have been the cost of reinstatement if such property had been destroyed, the amount recoverable hereunder shall be limited to :

  1. a) the extra cost necessarily incurred in reinstating only that portion damaged; or
  2. b) whilst applying to such property insured, the Sub-Limit stated herein,


Whichever is the greater, In the event of a Sub Limit not being stated in this Policy the Insurer (s) liability shall be limited to the amount as described in sub-paragraph (a) of this provision

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