Home Insurance - Principle of Average to the loss!

[GoyalAbhey]

A person owns a flat worth (market value) Rs.200000. He had insured it only for Rs 1,50,000. The flat is damaged by an earthquake, which loss is assessed at Rs.40000. Assuming the insurer applies the principle of Average to the loss, How much claim payment the insured will get?

[>take]

= Sum Insured/ Flat Market Value X Loss
= 150000 / 200000 X 40000
= 75000

[GoyalAbhey]

Is the above average of loss will also applicable for total loss case?

[Master]

Is the above average of loss will also applicable for total loss case?
Not Applicable -
(a) If you suffer a total loss, the above provision will have no effect.
(b) If you suffer a partial loss, the maximum amount that you may recover will bear the same proportion to your actual loss as the amount for which the property is insured bears to the full value of the property.
(c) Whatever your loss, in no case will you be entitled to recover more than the amount for which the property is insured.