ESCALATION CLAUSE

In consideration of the payment of an additional premium amounting to 50% of the premium produced by applying the specified percentage to the first or the annual premium as appropriate on the item(s) as specified in Schedule a the sum(s) insured thereby shall, during the period of insurance, be increased each day by an amount representing 1/365 th of the specified percentage increased per annum.
Unless specifically agreed to the contrary the provision of this clause shall only apply to the sums insured in force at the commencement of each period of insurance.
At each renewal date the Insured shall notify the Insurers :
1.    the sums to be insured under each item above, but in the absence of such instruction the sums insured by the above items shall be those stated on the Policy (as amended by any endorsements effective prior to the aforesaid renewal date) to which shall be added the increases which have occurred under this Clause during the period of insurance up to that renewal date, and
2.    the specified percentage is increase(s) required for the forthcoming period of insurance, but in absence of instructions to the contrary prior to renewal date the existing percentage increase shall apply for the period of insurance from renewal.
All the conditions of the Policy except insofar as they may be hereby expressly varied shall apply as if they had been incorporated herein.
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