Cutting Clause

Warranted that the damaged portion should be cut of and the balance being considered as sound and liability of the insurer shall be only for the length of portion which has been lost by being broken off or cut off. In addition the insurer shall also pay the cost of cutting. This is used in policies covering pipes, cables, sheets or tiles or similar items of length i.e., the cargo which come in different lengths, diameters and dimensions and where a portion of it is damaged, the rest can be used in many cases after cutting off the damaged portion. The object is to limit underwriter’s liability to the insured value of the damaged part cut off and the cost of cutting.

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