The cover is in respect of articles sold by financing institutions on hire-purchase basis and the Insurance is against default by hires. The Insurer undertakes to indemnity the insured against a certain percentage of such net pecuniary loss as the insured may sustain by reason of the hirer and his guarantor failing to pay a part or whole of the amount due by the hirer to the insured under a hire-purchase agreement. Net pecuniary loss is to be regarded as the difference between the value of the article as mentioned in the relative hire-purchase agreement and the aggregate of any deposit and installments paid by the hirer and/or by the guarantor and the net sale proceeds of the article.