A Question on Additional Increase in Cost of Working

Last week it was a run on ISR questions. This week it is all about Business Interruption. The latest reads:

Dear Dr Allan Manning

I trust that you are keeping well Doctor. We have previously met at Insurance Conference organised by Insurance Institute of South Africa.

A claim has been presented for adjustment under BI  but from the underwriting information the client does not have Business Interruption coverage but Additional Increased Cost of Working only.

The assessor attending to the adjustment is of the view that they  would need to calculate amount payable i.e Economic Limit under BI with the residual being payable under Additional Increased cost of working. I am of the view that given that coverage is for Additional Increased Cost of Working the issue of Economic Limit does not come into play and hence the methodology mooted by the adjuster does not apply in this instance.

It would be greatly appreciated if you could let me have your views  on this.

Thanking you in anticipation of your cooperation.

Regards

Siziwe” [surname and email supplied]

Policies vary enormously within one country, let alone around the world and rather than waste someone’s time and damage my own reputation, I asked Siziwe to send me over the actual wording of the Additional Increase in Cost of Working coverage and a copy of the Schedule to satisfy myself that the cover was for Additional Increase in Cost of Working and not just Increase in Cost of Working or something altogether different.

Allan to complete

Final Note: If this is a simple question on a specific claim I do not mind helping, as I did here, but I do get some very complex matters placed before me with a request that I provide an opinion. If it is too complex I am not prepared to do it as a ‘freebie’ and seek formal instructions.

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