Question

29) Stock on date of fire is Rs.1,20,000, Goods salvage 30,000 Amount of insurance policy Rs.1,00,000 which include average clause, then amount of claim is a) 25,000 b) 36,000 c) 75000 d) 4,00,000​

Answer 1

Explanation:

Stock on date of fire is Rs.1,20,000

Goods salvage is Rs. 30,000

Amount of insurance policy is Rs.1,00,000

(includes average clause)

Amount of claim is = ??

Stock on date of fire --------- Rs.1,20,000

Less : Goods salvage --------- Rs. 30,000

Loss ----------------- Rs. 90,000

Claim = Policy value / Total stock × Loss

➨ Claim = (1,00,000/1,20,000) × 90,000

➨ Claim = 10/12 × 90,000

➨ Claim = 10 × 7,500

➨ Claim = 75,000

Claim is Rs. 75,000

Hence, option c) Rs. 75,000 is the claim.

Answer 2

Option c). 75,000

Explanation:

★ Calculation of Insurance Claim :

• Loss of Stock =

• Amount of loss of stock is calculated as under :

Value of stock on the date of fire -- Rs. 1,20,000

Less : Value of Salvaged stock ----- 30,000

Stock destroyed by fire ---- 90,000

★ Amount of claim :

Loss of Stock = 90,000

Claim subject to average clause :

$\longrightarrow \: \frac{Amount \: of \: Policy}{Value \: of \: Stock} \times Loss$

$\longrightarrow \: \dfrac{1,00,000}{1,20,000} \: \times \: 90,000$

$\longrightarrow \: 75,000$

Amount of claim = Rs. 75,000

∴ Option c). 75,000

Amount of claim is Rs. 75,000.