How are claims paid under various Sections?

(i) Section ‘A’ (Buildings)
In the event that a building is completely destroyed, the full
replacement value of the building is paid by the insurance company.
The insurance company may also reinstate or repair the damaged
or destroyed property.
(ii) Section ‘B’ (Contents)
The full replacement value less a reasonable deduction for wear, tear and depreciation is often paid by the insurance company. The
insurer may repair or replace the damaged/ stolen property.
For portable items that are often taken out of the house and
are covered under the “all risks” section of the policy, the
compensation is in the form of repair, reinstatement, replacement
or a cash payment.
(iii) Sections D, E & F (Liability),
The statutory claims under Workmen’s Compensation Act are
settled in accordance with the statutory requirements while
liability claims are handled through courts.