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The sum insured representing the present replacement cost of the machinery.

Partial Loss

Full cost of parts plus the labour charges to and fro freight customs duty and charges for dismantling and re-erection. Excess applicable to the affected item is deducted from claim. Depreciation is applied for items with limited life.

Total Loss

Actual value of items immediately before the occurrence less appropriate depreciation. If under insured claim is paid only on proportionate basis.

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