The loss of hire insurer's liability for extra costs is limited to the amount by which the compensation otherwise due under the loss of hire insurance is reduced as a result of the measures taken, see sub-clause 2 of Cl. 16-11. This will normally be equal to the number of days saved multiplied by the daily indemnity that the insurer would otherwise have had to pay.
If the time saved falls within a period when other work is also carried out so that Cl. 16-12 applies, then the time saved is only that which would have been for the insurer's account. If the measures taken reduce the repair time to a level that is less than the deductible period, one cannot take into account time that is saved within the deductible period.
The costs that are to be paid by the insurer must, because of the limitation in Cl. 16‑4, sub-clause 2, be recalculated into indemnity days by dividing the costs by the amount of the daily indemnity.