Standard Of Proof

Condition 6 to the Industrial Special Risks (ISR) policy states that the Policyholder should provide "all particulars and details reasonably practicable of the loss and shall produce and furnish all books of accounts and other business books, invoices, vouchers and all other documents, proofs, information, explanations and other evidence and facilities as may reasonably be required for investigation and verification of the claim".

This concept seems simple enough. If property has been destroyed, documentation supporting ownership and the amount of reinstatement must be supplied. Proof of ownership may be in the form of photographs, original purchase invoices, employee declarations, operating manuals, etc.

When a corporation has computerised records is an electronic copy of an invoice adequate or does an original invoice need to be obtained? If the integrity of the accounting system is appropriately audited each year a computerised copy may be considered adequate. Some insurers still require an original document be sourced.

When it comes to Business Interruption what constitutes adequate proof of future profit?

When all that is "reasonably practicable" has been supplied it may be inappropriate to produce documentation that is not readily available from the accounting system.

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Author

Published with permission of Claim Solutions Pty Ltd.

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Insurance Policy

Country: - Australia

Policy Description: - Mark IV Industrial Special Risks (ISR) and many Fire policies.

Insurer: - Various.

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