OUTPUT REPLACEMENT CLAUSE

Any property insured which has a measurable output and which is capable of replacement with a new item or items which performs a similar function is valued for insurance purpose in respect thereof shall be on the same basis.
(i)    If property lost, destroyed or damaged is to be replaced by an item or items which has or have the same or lesser total output, then the insurable value thereof is the new installed cost of such replacement item or items as would give the same total output as the property lost or damaged.
(ii)    If property lost or damaged is to be replaced by an item or items which has or have a greater total output, then if property is not available with the same total output then no deduction shall be made from any claim for the improved output.

Provided that in the event of partial loss where property is to be repaired this policy shall pay the cost of restoration of the damaged property to a conditions substantially the same but not better or more extensive than its conditions when new.
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