(1) Specific Policy: – In a specific policy, a businessman gets from the insurance company his actual loss, even if his goods are under insured.  The actual loss, of course, should not exceed the value of his policy.  A man may have insured his goods worth Rs.  3,000 for Rs.  1000 under a specific policy.  If the damage to his goods by fire is Rs.  1000, he will get the full amount of Rs.  1000, although he may have underinsured his goods.  

(2) Average Policy: – In an average policy, if the goods are underinsured, the merchants gets a ratable portion of the loss only.  If the goods costing Rs.  3000 are insured for Rs.  2000, and if the actual loss by fire is Rs.  1500, the insurance company y will pay him his loss pro rata.  That is to say, as his goods were insured for two – thirds of the cost, the company will pay him two – third of his actual loss.

  (3) Floating Policy: – Very often the goods of a businessman may be stored not in one place, but at various places.  Such goods stored at various places are insured under floating policy.  

(4) valued policy

Under  thisp  the company and the merchant agree upon the value of the goods in the event of their total loss.  ***** 000 ****** 000 ****** 004 ****** 00 # ****** 00 # ******



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