Pair and Set Clause
The pair and set clause provides that where one part of a pair or set (such as earrings or a furniture suite) is lost or damaged, the indemnity is generally limited to the proportionate value of the affected part rather than the value of the entire set.
- Clause type
- Limitation
- Origin/Market
- International programme
- Favours
- Insurer
- Negotiability
- Negotiable
Purpose
Certain items, such as pairs of earrings, cufflinks, furniture suites or art collections, often achieve a significantly higher combined value as a complete pair or set than the sum of the individual pieces. If one piece is lost or damaged, the remaining pieces frequently lose value or usefulness disproportionately. The pair and set clause is intended to clarify how the indemnity is to be assessed in such cases and to prevent the policyholder from automatically claiming the full value of the set for the loss of a single item.
Effect and limits
Under the clause, indemnity is generally limited to the proportionate loss of value attributable to the damaged or lost item, rather than the full value of the entire set. The policyholder is also typically not required to surrender the remaining items to the insurer in order to claim the full value of the set (no forced abandonment). Some wordings provide an exception where the remaining items have become practically worthless or unsaleable, in which case a higher indemnity, corresponding to the loss of value of the set as a whole, may apply.
Negotiation and practice
For collectors, jewellers and policyholders with high-value furnishings, the precise wording of the clause matters, particularly how the “proportionate loss of value” is to be determined methodologically (for example, by expert appraisal). For valuables cover on jewellery or art collections, it is advisable to clarify whether, and under what conditions, the full value of the set can be claimed.