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Standard XI
Business Studies
Question

This policy compensates the market value of the lost property after accounting for any depreciation _______________.
  1. Floating Policy
  2. Comprehensive Policy
  3. Valued Policy
  4. Reinstatement Value Policy

A
Reinstatement Value Policy
B
Valued Policy
C
Comprehensive Policy
D
Floating Policy
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Solution
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Reinstatement value policy compensates the market value of the lost property after accounting for any depreciation. The sum is assured on the basis of the market value of the similar asset. Under this reinstatement policy, the value may be altered even after the claim has been accepted by the insurer.

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