Para­graph 3: Com­plete (full) util­i­sa­tion of sum in­sured with an op­tion to re­in­state

Insurance - - FEATURE -

Para­graph 3 con­cerns a sit­u­a­tion where the in­sured ben­e­fit (“the sum in­sured”) has been fully ex­hausted or utilised “upon re­place­ment of any glass in the wind­screen, win­dow or sun­roof,” as such, “the ben­e­fit shall au­to­mat­i­cally be ter­mi­nated “un­less the cover (“the sum in­sured”) is re­in­stated by pay­ment of a fur­ther ad­di­tional pre­mium” (em­pha­sis added). Fur­ther, in the ab­sence of the ter­mi­na­tion clause in the En­dorse­ment, this para­graph is con­strued as the ter­mi­na­tion clause sub­ject to an ex­cep­tion. The ex­cep­tion is that ter­mi­na­tion of ben­e­fit can be avoided and ben­e­fit re­in­stated upon pay­ment of a fur­ther ad­di­tional pre­mium. The dif­fer­ence be­tween para­graphs 1 and 3 is that para­graph 1 pro­vides a max­i­mum limit of com­pen­sa­tion up to the sum in­sured, whereas para­graph 3 pro­vides an op­tion to re­in­state by way of “pay­ment of a fur­ther ad­di­tional pre­mium.” It is trite law that once the sum in­sured has been com­pletely ex­hausted fol­low­ing a claim, there be­ing nil insurance avail­able there­after, this (sum in­sured) has to be re­in­stated by a pay­ment of fur­ther pre­mium as seen in the fol­low­ing Illustration A:

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