Average Relief clause Sample Clauses
An Average Relief clause is designed to proportionally adjust the amount of relief or compensation provided under a contract when a loss or event is only partially covered or affected. In practice, this means that if a party suffers a loss that is only partly attributable to a covered cause, the relief granted will be reduced in proportion to the uncovered portion. For example, if an insured asset is only 60% covered by a policy, any compensation for loss would be limited to that percentage. The core function of this clause is to ensure fairness by preventing overcompensation and allocating risk appropriately between the parties.
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Average Relief clause. If the property hereby Insured shall, at the time of any loss, be collectively of greater value than the sum Insured thereon, then the Insured shall be considered as being his own Insurer for the difference, and shall bear a rateable proportion of the loss accordingly. It is hereby further noted and agreed that notwithstanding the declaration of individual sum insured within the policy, average will apply as though reference to property therein is in respect of all properties of the same insured at the same location insured therein. This insurance is not subject to average if the sum insured exceed 85% of the value of the property insured at the time of loss.