3. Operative Clause
Operative Clause specifies the perils insured in a scheduled form of policy.
More from the web:
Insuring Clauses are sometimes called operative clauses or simply labelled as “cover”.
The Operative Clause of fire policy consists of three parts, preamble, perils covered and limitations.
It says that the insured carrying out the business/profession as stated in the policy would be indemnified on the basis of the contract.
It includes the name of the insurance company and the name of the person who has applied for the policy.
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