The clause through which the insurance claim due to loss of stock is reduced to the proportion that the policy value is …………………………..

Question

Quizplus · Accepted Answer

The Average Clause in insurance policies is used to reduce the claim amount to the proportion that the policy value bears to the total value of the insured item. This is particularly relevant in cases of underinsurance, where the policy value is less than the total value of the item or property insured.

The Clause Through Which the Insurance Claim Due to Loss