What is the purpose of a Pair and Set Clause in an insurance policy?

The purpose of a Pair and Set Clause in an insurance policy is to clarify how claims are handled when a pair or set of items is damaged or lost. This clause specifically states that if only part of a set is damaged, the insurer will only pay for the value of the damaged item rather than the entire set. This means that the focus is on compensating the policyholder for the specific item that was affected, reflecting the principle that each item within a set may have different values or importance to the insured.

Therefore, when an insured item is part of a collection or a set, and some items are damaged or lost while others remain unaffected, this clause limits the insurer's obligation to just the affected portion rather than treating the entire set as a whole for purposes of compensation. This approach ensures that the insured is compensated equitably based on the loss of the specific items instead of being compensated for the entire value of the collection, which may not accurately reflect their actual loss.