<p>Subject to all its provisions and stipulations, this Policy covers only against loss directly resulting from necessary interruption of business caused by destruction or damage by the perils insured against occurring during the term of this Policy.</p>

<p>The insurance under Item No. 1 is limited to loss of Gross Profit due to (a) Reduction in Turnover and (b) increase in Cost of Working and the amount payable as Indemnity thereunder shall be:</p>

<p>(a) in respect of Reduction in Turnover: The sum produced by applying the Rate of Gross Profit to the amount by which the Turnover during the Indemnity Period shall in consequence of the damage, fall short of the Standard Turnover.</p>

<p>(b) in respect of increase in Cost of Working: The additional expenditure (subject to the provisions of the Uninsured Standing Charges Clause) necessarily and reasonably incurred for the sole purpose of avoiding or diminishing the reduction in Turnover which but for that expenditure would have taken place during the Indemnity Period in consequence of the damage, but not exceeding the sum produced by applying the Rate of Gross Profit to the amount of the reduction thereby avoided.</p>

<p>less any sum saved during the Indemnity Period in respect of sum of the charges and expenses of the business payable out of Gross Profit as may cease or be reduced in consequence of the damage.</p>

<p>provided that if the Sum Insured by this item be less than the sum produced by applying the rate of Gross Profit by the Annual Turnover (or to a proportionately Increased multiple thereof where the Maximum Indemnity Period exceeds twelve months) the amount payable shall be proportionately reduced.</p>

<p>DEFINITIONS</p>

<p>GROSS PROFIT - The amount by which the sum of the Turnover and the Closing Stock shall exceed the sum of the Opening Stock Work-in-Progress and the Specified Working Expenses.</p>

<p>Note 1 &nbsp; &nbsp;The amount of the Opening and Closing Stocks shall be arrived at in accordance with the Insured&#39;s normal accountancy methods, due provisions being made for depreciation</p>

<p>Note 2 &nbsp; &nbsp; The words and expressions used in this Definitions shall have the meaning usually attached to them in the books and accounts of the Insured unless otherwise defined in this specification</p>

<p>SPECIFIED WORKING EXPENSES -</p>

<p>1. &nbsp; &nbsp; All purchases (less discounts received);<br />
2. &nbsp; &nbsp; Salaries and Wages of W2 Personnel;<br />
3. &nbsp; &nbsp; Power and Water (except Power and Water for Selling, General and Administration);<br />
4. &nbsp; &nbsp; Consumable stores;<br />
5. &nbsp; &nbsp; Carriage;<br />
6. &nbsp; &nbsp; Packing materials;<br />
7. &nbsp; &nbsp; Discounts allowed;<br />
8. &nbsp; &nbsp; Advertisements and Promotions (except corporation advertisement)</p>

<p>TURNOVER - &nbsp;The money (less discount received) paid or payable to the Insured for goods sold and delivered and for services rendered in course of the business at the premises</p>

<p>INDEMNITY PERIOD - The period beginning with occurrence of the damage and ending not later than the Maximum Indemnity Period thereafter during which the results of the business shall be affected in consequence of the damage.</p>

<p>MAXIMUM INDEMNITY PERIOD - The period stated in the Schedule</p>

<p>RATE OF GROSS PROFIT - The rate of Gross Profit earned on the Turnover during the financial year immediately before the date of the damage&nbsp;&nbsp; &nbsp;&nbsp;<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br />
ANNUAL TURNOVER - The Turnover during the twelve months immediately before the date of the&nbsp;<br />
damage &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp;<br />
&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<br />
STANDARD TURNOVER - The Turnover during the period corresponding with the Indemnity Period &nbsp;in the twelve months immediately before the date of the damage appropriately adjusted where the Indemnity Period exceeds twelve months to which such adjustments shall be made as may be &nbsp; &nbsp; &nbsp; &nbsp;necessary to provide for the trend of the business and for the variations in or other circumstances affecting the business either before or after the damage of which would have affected the business had the damage not occurred, so that the figures thus adjusted shall represent as nearly as may be reasonably practicable the results which but for the damage would have been obtained during the relative period after the damage</p>

<p>Alternative Trading Clause - If during the Indemnity Period goods shall be sold or services shall be rendered elsewhere than at the premises for the benefit of the business either by the Insured or by others on the Insured&#39;s behalf the money paid or payable in respect of such sales or services shall be brought into account in arriving at the Turnover during the Indemnity Period.</p>

<p>Uninsured Standing Charges Clause - if any standing charges of the business be not insured by this Policy (having been deducted in arriving at the Gross Profit as defined herein) then in computing the amount recoverable hereunder as increase in Cost of Working, that proportion only of any additional expenditure shall be brought into account which the Gross Profit bears to the sum of the Gross Profit and the Uninsured Standing Charges</p>

<p>Premium Adjustment Clause - In the event of the Gross Profit earned (or a proportionately increased multiple thereof when the Maximum Indemnity Period exceeds twelve months) during the accounting period of twelve months most nearly concurrent with any period of Insurance as certified by the Insured&#39;s Auditors, being less than the sum Insured thereon a pro-rate return of premium not exceeding 50% of the premium paid on such sum insured of such period of insurance will be made in respect of the difference. &nbsp;If any damage shall have occurred giving rise to a claim under this Policy, such return shall be made in respect only of so much of the said difference as is not due to such damage</p>

<p>CONDITIONS</p>

<p>1. &nbsp;If there be any material misdescription of the Business or Premises to which this Insurance refers or any misrepresentation as to any fact material to be known for estimating the risk, or any omission to state such fact, the Company shall not liable upon the Policy.</p>

<p>2. The Insured shall give notice to the Company of any insurance or Insurances already affected, or which may subsequently be effected, covering any of the loss hereby insured against and unless such notice be given and the particulars of such insurance or insurance be stated in or endorsed in the Policy by or on behalf of the Company before the occurrence of any Damage, all benefit under this Policy shall be forfeited. &nbsp;</p>

<p>3. Immediately upon any fall or displacement.</p>

<p>a. &nbsp;of any building Damage to which might give rise to a claim under this Policy<br />
b. &nbsp;of any part of such building<br />
c. &nbsp; of the whole or any part of any range of buildings or of any structure of which such building forms part</p>

<p>The insurance under this Policy shall cease in respect of loss resulting from Damage to such building or property therein provided that</p>

<p>I) Such fall or displacement is of the whole or a substantial or important part of such building or impairs the usefulness of such building or any part thereof or leaves such building or any part thereof or any property contained therein subject to increased risk of Damage or is otherwise material.</p>

<p>II) Such fall or displacement is not caused by Damage, loss resulting from which is covered by this Policy or would be covered by this Policy or would be covered is such building, range of buildings or structure were included in the Premises to which this Policy refers.</p>

<p>If any claim be made upon this Policy in consequence of Damage whether occurring before, during or after such fall or displacement the Insured shall produce such proof as may reasonable be required that the loss was not, either in origin or in extent, directly or indirectly, proximately or remotely, occasioned by or contributed to by any such fall or displacement and did not either in origin or extent, directly or indirectly, proximately or remotely, arise out of or in connection with any such fall or displacement.</p>

<p>In any action, suit or other proceeding, the burden of proving that any fall or displacement is caused by Damage shall be upon the Insured.</p>

<p>4. &nbsp;The Insurance does not cover loss occasioned by or happening through or in consequence of:</p>

<p>a. The burning of property by order of any Public Authority.<br />
b. &nbsp;Subterranean fire.<br />
c. &nbsp;Explosion whether the explosion be occasioned by Fire or otherwise except as stated on the face of this Policy.<br />
d. &nbsp;The burning, whether accidental or otherwise, of forest, bush, prairie, pampas or jungle and the clearing of lands by fire.<br />
e. &nbsp;Damage to property occasioned by its own fermentation, natural heating or spontaneous combustion or by its undergoing any heating or drying process.<br />
f. &nbsp; Loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by nuclear weapons material.<br />
g. &nbsp;Loss or damage directly or indirectly caused by or arising from or in consequence of or contributed to by lonising radiations o contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear fuel. &nbsp;For the purpose of this Condition 4(7) only, combustion shall include any self-sustaining process of nuclear fission.</p>

<p>5. &nbsp;This Insurance does not cover any loss resulting from Damage occasioned by or through or in consequence, directly or indirectly, of any of the following occurrences, namely -</p>

<p>a. &nbsp;Earthquake, volcanic eruption or other convulsion of nature.<br />
b. &nbsp;Typhoon, hurricane, tornado, cyclone or other atmospheric disturbance.<br />
c. &nbsp;War, invasion, act of foreign enemy, hostilities or warlike operations (whether war be declared or not), civil war<br />
d. &nbsp;Mutiny, riot, military or popular rising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege or any of the events or causes which determine the proclamation or maintenance of martial law or state of siege.<br />
e. &nbsp;Requisition or seizure or destruction of or damage to property by or under the order of any Government or Public or local authority or confiscation or nationalization.<br />
f. &nbsp; Theft during or after the occurrence of a fire</p>

<p>Any loss resulting from Damage happening during the existence of abnormal conditions (whether physical or otherwise) which are occasioned by or through or in consequence, directly or indirectly of any of the said occurrences shall be deemed to be loss which is not covered by this Insurance except to the extent that the Insured shall prove that such Damage happened independently of the existence of such abnormal conditions</p>

<p>In any action, suit or other proceeding where the Company alleges that the reason of the provision of this Condition any loss is not covered by this Insurance, the burden of proving that such loss is covered shall be upon the Insured.</p>

<p>6. &nbsp;The Insurance by this Policy shall cease if:</p>

<p>a. &nbsp;the Business be wound up or carries on by a Liquidator or Receiver or permanently discontinued or<br />
b. &nbsp;the Insured&#39;s Interest cease otherwise than by death or<br />
c. &nbsp; any alterations be made either in the Business or in the Premises or property therein whereby the risk of Damage is increased</p>

<p>at any time after the commencement of this Insurance, unless its continuance be admitted by memorandum signed by or on behalf of the Company.</p>

<p>7. &nbsp;Notice shall be given to the Company and, if required, an additional premium paid, if the rate of premium payable in respect of the Insurance covering the Interest of the Insured in the property at the Premises against Fire Damage shall be increased.</p>

<p>8. &nbsp;This Insurance may be terminated at any time at the request of the Insured, in which case the Company will retain the customary short period rate for the time the Policy has been in force. &nbsp;This Insurance may also at any time be terminated at the option of the Company by sending seven days notice be registered letter to the Insured at his last known address, in which case the Company shall be liable to repay on demand a ratable proportion of the premium for the un-expired term from the date of the cancelment.</p>

<p>9. &nbsp;On the happening of any Damage in consequence of which a claim is or may be made under this Policy, the Insured shall forthwith give notice thereof to the Company and shall with due diligence do and concur in doing and permit to be done all things which may be reasonably practicable to minimize or check any interruption of or Interference with the Business or to avoid or diminish the loss, and in the event of a claim being made under this Policy shall, not later than thirty days after the expiry of the Indemnity period or within such further time as the Company may in writing allow, at his own expense deliver to the Company in writing a statement setting forth particulars of his claim, together with the details of all other insurance (if any) covering the Damage or any part of it or consequential loss of any kind resulting therefrom.</p>

<p>10. &nbsp;The Insured shall at his own expense produce, procure and give to the Company such books of account and other business books, vouchers, invoices, balance sheets and other documents, proofs, information, explanation and other evidence as may reasonably be required by or on behalf of the Company for the purpose of investigating or verifying the claim together with a declaration on oath or in other legal form of the truth of the claim and of any mattes connected therewith. &nbsp;No claim under this Policy shall be payable unless the terms of this Condition have been complied with and in the event of non-compliance therewith in any respect, any payment on account of the claim already made shall be repaid to the Company forthwith:</p>

<p>11. &nbsp;If the claim be in any respect fraudulent, or if any false declaration be made or used in support thereof, or if any fraudulent means or devices are used by the Insured or any one acting on his behalf to obtain any benefit under this Policy, if the Insured or any person acting on his behalf shall hinder or obstruct the Company in the exercise of its rights, or if the Damage be occasioned by the willful act, or with the connivance of the Insured, or, if the claim be made rejected and an action or suit be not commenced within twelve months after such rejection, or (in case of an arbitration taking place) within twelve months after the Arbitrator or Arbitrators or umpire shall have made their award all benefit under this Policy shall be forfeited.</p>

<p>12. &nbsp;If at the time of any loss under this Policy there be any other subsisting insurance or insurances, whether affected by the Insured or by any other person or persons, covering such loss or any part of if the Company shall not be liable to pay or contribute hereunder more than their ratable proportion of such loss.</p>

<p>13. &nbsp;The Insured shall, at the expense of the Company do and concur in doing, and permit to be done, all such acts and things as may be necessary or reasonably required by the Company for the purpose of enforcing any rights and remedies, or of obtaining relief or indemnity from other parties to which the Company shall be or would become entitled or subrogated, upon its paying for any loss under this Policy, whether such acts and things shall be or become necessary or required before or after his indemnification by the Company.</p>

<p>14. &nbsp;If any difference shall arise as to the amount to be paid under this Policy (liability being otherwise admitted) such difference shall be referred to an arbitrator to be appointed by the parties in accordance with statutory provisions in that behalf for the time being in force. &nbsp;Where any difference is by this condition to be referred to arbitration the making of an award shall be a condition precedent to any right of action against the Company.</p>

<p>If the Company shall offer an amount in settlement or disclaim liability for any claim hereunder and such claim shall not within twelve calendar months from the date of such disclaimer have been referred to arbitration under the provisions contained in the Policy or been made subject to pending court action then the claim shall for all purposes be deemed to have been abandoned and shall not thereafter be recoverable hereunder.</p>

<p>15. &nbsp;In no case whatsoever shall the Company be liable in respect of any claim under this Policy after the expiration of</p>

<p>a. &nbsp;one year from the end of the Indemnity Period of, if later<br />
b. &nbsp;three months from the date on which payment shall have been made or liability admitted by the Company covering the Damage giving rise to the said claim unless the claim is the subject of pending action or arbitration.</p>

<p>16. &nbsp;Every notice and other communication to the Company required by these Conditions must be written or printed.</p>

<p>17. &nbsp;In consideration of the Insured undertaking to pay an additional premium at the agreed rate on the amount of loss calculated on a pro-rata basis from the date of such loss to the expiry of the current period of Insurance. &nbsp;It is agreed that in the event of loss the Insurance hereunder shall be maintained in force for the full sum insured.</p>

<p>18. &nbsp;The Company shall not be liable in so far as the interruption loss is increased</p>

<p>a. &nbsp;by extraordinary events taking place during the interruption<br />
b. &nbsp;by restriction imposed by the authorities on the reconstruction or operation of the business<br />
c. &nbsp;due to the insured&#39;s lack of sufficient capital for timely restoration or replacement of property destroyed damaged or lost.</p>

<p>This Insurance does not cover any loss, damage or destruction caused by pollution or contamination except (unless otherwise excluded) damage or destruction of the property insured caused by</p>

<p>I) &nbsp;pollution or contamination which itself result from a contingency hereby insured against<br />
II) &nbsp;any contingency hereby insured against which itself results from pollution or contamination<br />
&nbsp;</p>
