E-Clauses124 Views
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  1. Subject to all its terms and conditions, this  Policy  also covers the  necessary   Extra  Expense   incurred  by the  Insured  in order to continue as nearly as practicable  the normal  conduct of the  Insured’s business following damage to or destruction of  the  property  insured,  or  of  property  rented to or  used  by  the   Insured   (other  than property  excluded),  by  perils  insured.  The  Insurers shall be  liable  for  the  extra expense  so incurred for not exceeding such length of time, herein referred to as  the period  of  restoration commencing with the date of the loss and not  limited  by  the date  of  expiration  of  this  policy but subject to the Indemnity Period applying, as shall be required with the exercise of due diligence and dispatch to repair, rebuild or replace such property.
  2. The term “Extra  Expense”  wherever used in this  Schedule  is defined as the excess  (if  any)  of the total cost during the period of restoration chargeable to the  conduct of  the   Insured’s  business, over and above the total cost that would  normally  have been  incurred  to  conduct the business during the same period had  no  damage  or destruction occurred, the cost in each case to include expense of using other property or facilities of other concerns or other necessary expenses.

         In  no event, however, shall  Insurers  also be liable under this extra expense  section for  Loss  of  Income, nor for the cost of repairing or replacing any property that  has been  damaged or destroyed, except cost in excess of the normal cost of  such  repair or replacements necessarily incurred for the purpose of reducing the total amount of extra expense.

  1. Any salvage of property obtained for temporary use during the period of restoration which remains after resumption of operations shall be taken into consideration in the adjustment of any loss hereunder.
  2. Insurers shall not be liable for  Extra  Expense  occasioned by any ordinance of  law regulating  or  prohibiting  the repair of buildings, nor  by  the  suspension,  lapse  or cancellation  of any license, lease or any written or oral agreement, nor for  the  cost of compiling books of record or other documents.

         Limit USD 5,000,000 any one loss and provided that the total amount of Business Interruption, Increased Cost of Working and Extra Expense does not exceed the Sum Insured for Business Interruption stated in the schedule.

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  1. Hi,
    Can you put a light on what is the difference between Extra Expenses Clause and Additional increased cost of working. If the policy has both the clauses, Is it normal or one should be deleted.

    I believe, “Extra Expenses” refers to “Material Damage Claim” whilst “AICOW” refers to “Business Interruption Claim”. Both work on the same principles e.q. extra expenses incurred to minimise claim.