Section 68: Extent of liability of insurer for loss.

(1) Where there is a loss recoverable under the policy, the insurer, or each insurer if there are more insurers than one, shall be liable for such proportion of the measure of indemnity as the amount of his subscription bears to the value fixed by the policy in the case of a valued policy, or to the insurable value in the case of an unvalued policy.
(2) For the purposes of this section "measure of indemnity" means the sum which the assured may recover in respect of a loss on a policy by which he is insured, being in the case of a valued policy the full extent of the value fixed by the policy, and in the case of an unvalued policy, the full extent of the insurable value.