The sum insured mentioned in the Policy is a maximum amount, and a provisional premium of 75% of the annual premium based on the sum insured shall be paid in advance.

    The Insurance shall be subject to monthly declaration. The value at risk at the premises at any time during a past month shall be declared in writing by the Insured to the Company not later than 30 (thirty) days after expirely of each month. Should the Insured fail to declare within this period, the Insured shall be deemed to have declared the sum insured as the value.

    On expiry of each period of insurance the actual premium due shall be adjusted on the basis of the average amount insured, i.e. the total of the sums declared divided by the number of declarations. If the actual premium be greater than the provisional premium, the insured shall pay the difference; if it be less, the difference shall be repaid to the insured, but such repayment shall not exceed one third of the provisional premium.

    In the event of a loss the declarations for the remaining period of insurance shall be increased by the amount of the loss for the purpose of calculating the additional/return premium.

    If after the occurrence of a loss it is found that the amount for the last declaration previous to the loss is less than the amount that ought to have been declared, then the amount recoverable by the insured shall be reduced in such proportion as the amount that the said last declaration bears to the amount that ought to have been declared.