Common use of Reducing Sum Clause in Contracts

Reducing Sum. Insured Covers (applicable only for credit linked Policy) i. The Principle Outstanding in the books of the Bank/Financial Institution as on the date of occurrence of the Insured Event; or ii. 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 iii. The Sum Insured as appearing against Section A, B and C of the Policy Schedule/ Certificate of Insurance.

Reducing Sum. Insured Covers (applicable only for credit linked Policy) i. The Principle Outstanding in the books of the Bank/Financial Institution as on the date of occurrence of the Insured Event; or ii. 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 w as equivalent to the Sum Insured. ; or iii. The Sum Insured as appearing against Section A, B and C of the Policy Schedule/ Certificate of Insurance.