Definitions

• Gross Profit : Net Profit plus Insured Standing Charges
• Net Profit : Net Trading Profit less all capital receipts / accretions / outlays chargeable to capital less all standing and other charges including depreciation, before tax from specified business and specified premises
• Trading Profits : Profits from selling goods dealt / manufactured / services rendered
• Standing Charges : All fixed costs incurred for proper business operations
• Turnover : The amount payable (less discount) to the insured for sale of goods/ services rendered in course of business at specified premises
• Indemnity Period : Starts from the day of accident and ending not later than the number of months indicated in the policy during which the business is affected
• Rate of Gross Profit : Earned on turnover during the financial year immediately before the date of accident, subject to trend adjustment
• Annual Turnover : During twelve months before the date of accident, subject to trend adjustments
• Standard Turnover : During that period in twelve months immediately before the date of accident which corresponds with Indemnity Period, subject to adjustments
• Lay Off Wages : Paid to employees during indemnity period for whom no work was/ is available in consequence of the accident
• Adjustment of Premium : To the extent of difference between actual Gross Profit of the current financial year and estimated profits subject to a downward limit of 50%