Agreed Bank Clause

The agreed bank clause is attached to an insurance policy in the event when the bank has a partial interest in the property that is insured or when the insured property is mortgaged. The policy is issued in the name of the bank or mortgagor. 

• Any claim that arises will be paid to the bank in full and final discharge of liability under the insurance policy.

• Notice for alteration in risk  factors under the policy when given by the bank is considered as sufficient.

• Arbitration   in the event of claim settlements when made with the bank will be binding on all parties insured.

• The changes in risk due to alterations or increase will be updated within the policy, provided the bank notifies the same within a reasonable period of time and and pays additional premium.