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670 Lafayette Ave, Brooklyn,
NY 11216

+1 800 966 4564
+1 800 9667 4558

Reinstatement of the Sum Insured /Limits of Liability

Every successful partial loss has the effects of reducing the sum insured by the claim amount. The insured has to restore the sum insured or limits of liability to its original amount for the unexpired period of insurance. A pro –rata premium will be charged after remaining period of insurance.

If the amount of additional pro-rata premium is in significant the insurer can reinstate the sum insured without charge

For example

Sum Insured KES. 1000,000

Policy Period 1/6/18 to 31/12/18

Date of loss 31 march 2018

Amount of loss KES. 400,000

Premium rate 2%

The sum insured reduces by KES 400,000 (claim amount) to 600,000

Pro – rata premium required to reinstate the sum insured to its original

KES. 400,000@2×274/365 (unexpired period of insurance)

= KES 600.25

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