Claim Within Your Cover? Why Your Insurance Company May Pay Less

If your business property is insured for less than the value required by your policy, an underinsurance clause may reduce even a claim below your sum insured. In this example, machinery with a replacement value of twenty lakh rupees is insured for ten lakh. If the proportional underinsurance clause applies, a covered claim of two lakh may be reduced to one lakh before other deductions. The valuation basis, policy terms and any waiver matter. Ask me to help check whether your business property is insured for the right value.