A legal term for a written declaration, made under oath, of what the individual knows to be factual information. In liability or property insurance, a declaration is the part of the contract that contains basic information, for example, the insured’s contact information or the address of the property.

An arrangement whereby a provisional premium is paid and subsequently adjusted by an additional or return premium on receipt of a declaration from the insured giving details of value at risk.

In consideration of premium by policy being provisional subject to adjustment on expiry of each period of insurance the insured agrees to declare in writing the value of the stocks (other than retail) less any amount insured by policies other than declaration policies, in each separate building or non-communicating compartment or in the open on the following basis namely (1) average of the values at the risk on each day of the month, or (2) The highest value at risk during the month and to make such declarations by the last date of the succeeding month. In respect of a declaration not being made as stipulated the insured shall be deemed to have declared the sum insured hereby as the value at risk. On expiry the premium shall be calculated on the average sum insured and if the resultant premium is less than the provisional premium the different shall be repaid to the insured buy such repayment shall not exceed 50% of the provisional premium. No reduction in sum insured to be allowed mid-term. Basis of value for declaration shall be the market value and any loss shall be settled on the basis of market value immediately anterior to the loss. Midterm cancellation by insured the premium to be retained shall be the appropriate short premium calculated on the average amount insured up to the date of concealment or 50% of the provisional premium whichever is greater. If cancellation by insurer premium to be retained shall be the appropriate pro-rata premium calculated on the average amount insured up to the date of concealment or 50% of the provisional premium whichever is greater.

A form of Policy where the details of the Insurance cover are declared by Policyholder at regular intervals.

The stocks which are subject to market fluctuations could be covered under a declaration Policy. Under this Policy the insured gets full protection but has to pay premium on the average value of the stocks held during the period of Insurance. The minimum sum insured shall be Rs. 1 crore in one or more locations and the sum insured shall not be less than Rs. 25 lacs in at least of these locations. Necessary that the declared values should approximate to this figure at some time during the policy year. The insured will declare periodically, say daily, weekly or monthly the average of values at risk during the said period. If declarations are not received within the specified period, the full sum insured under the policy shall be deemed to have been declared. Reduction in sum insured not to be allowed under any circumstances. Refund of premium on adjustment based on the declarations/cancellations shall not exceed 50% of the total premium. The basis of value for declaration shall be the market value anterior to the loss. Policy is not for insurance required for a short period, stocks undergoing process or stocks at Railway sliding. Subject to Average Clause as applicable.