The policy comprises of 10 sections as given here under
Section I – Fire & Allied Perils
For the insurance of household items, it would be necessary to group the items in a broad category like furniture, clothing, linen, utensils , crockery etc. and give a value equivalent to the market value i.e. the value for which this used item could be bought or sold in the market.
Sections I A & B, II, III, IV, VI ,VII & VIII should be insured on market value basis as described above.
It is a condition of Section V i.e. breakdown of domestic appliances, that the sum insured should represent the current replacement value of a similar item. For e.g. to insure 165 ltr. Samsung fridge which is 3 years old, the sum insured should be equivalent to the cost price of a new 165 ltr. Samsung fridge.
However, the claim amount payable would be the amount required to bring the damaged item to the same condition as it was prior to the damage subject to the adequacy of the sum insured.
The sum insured under section IX i.e. Personal Accident should not exceed 72 months salary from gainful employment.