Multiple choice

In Reinstatement Policy

  1. The insurer reserves to himself the right to reinstate or replace the damaged property

  2. The insurer covers for the goods in the process of transport

  3. The insurer covers not only the risk of fire, but also of explosion, and lightning

  4. None of these

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In this policy, the insurer himself reserves the right to replace the property destroyed or damaged by fire.In this the property is replaced and cash is not paid as compensation. It is also called replacement policy so it is the right answer here.