Common use of For Reducing Sum Insured Covers (applicable only for credit linked Policy Clause in Contracts

For Reducing Sum Insured Covers (applicable only for credit linked Policy. Notwithstanding anything contrary stated in the Policy, the Sum Insured under the Policy on the date of the occurrence of the event covered under Sections I & II for the purpose of calculation of claim shall be the least of the following: a. The Principle Outstanding in the books of the Bank/Financial Institution as on the date of occurrence of the Insured Event; or b. The Principle Outstanding as per the amortization schedule prepared by Bank/Financial Institution. In the event the Sum Insured as appearing against Section I & II of the Schedule I of the Policy is less than the total of the actual Credit disbursed upto the date of the occurrence of the Insured Event, then the Amortization schedule shall be calculated as if the actual Credit disbursed was equivalent to the Sum Insured. ; or c. The Sum Insured as appearing against Section I & II of the Policy Schedule/ Certificate of Insurance.