Public Authorities Clause


The insurance by this policy extends to include such additional cost of reinstatement of the destroyed or damaged property thereby insured as may be incurred solely by reason of the necessity to comply with building or other regulations under or framed in pursuance of any government act or bye-law of any Municipal or Local Authority provided that:
1.    The amount recoverable under this Extension shall not include:
a.    The cost incurred in complying with any of the aforesaid Regulation or Bye Laws
I.    In respect of destruction or damage occurring prior to the granting of this Extension
II.    In respect of destruction or  damage not insured by the policy.
III.    Under which notice has been served upon the Insured prior to the happening of the destruction damage.
IV.    In respect of undamaged property or undamaged portions of property.
b.    The additional cost that would have been required to make good the property damaged or destroyed to a condition equal to its condition when new had the necessity to comply with any of the aforesaid Regulation or Bye -Laws not arisen.
c.    The amount of any rate, tax, duty, development or other charge or assessment, arising out of capital appreciation which may be payable in respect of the property or by the owner thereof by reason of compliance with any of the aforesaid Regulation or Bye-Laws.
2.    The work of reinstatement must be commenced and carried out with reasonable dispatch and in any case must be completed within twelve months after the destruction or damage or within such further time as the Insurer may (during the said twelve months) in writing allow and may be carried out wholly or partially upon another site (if  the aforesaid Regulation or Bye-Laws so necessitate) subject to the liability of the Insurer under this Extension not being thereby increased.
3.    If the liability of the Insurer under (any item of) the Policy  apart from this Extension shall be reduced by the application of any of the terms and conditions of the Policy then the liability of the Insurer under this Extension (in respect of any such item) shall be reduced in like proportion.
4.    The total amount recoverable under any item of the Policy shall not exceed the sum insured thereby.
5.    All the conditions of the Policy except insofar as they may be hereby expressly varied shall apply as if the had been incorporated herein.
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