a person insured his vehicle worth Rs 450,000 at a rate of 2.5% for 4 years. After 3 years he got a claim of damages worth Rs 750,000.how much loss had he recovered through insurance. answer by step by step explanation
Answers
Answer:
Loss Recovered = Rs. 719512.5
Step-by-step explanation:
Car / Vehicle amount = Rs. 450,000
1st premium = rate of premium * total amount of the vehicle / 100
1st premium = 2.5 * 450000 / 100
1st premium = Rs. 11250
Depreciation = 10% of the total amount of the vehicle
Depreciation = 10 * 450000 / 100
Depreciation = 45000
Depreciation Price = total amount of the vehicle - Depreciation
Depreciation Price = 450000 - 45000
Depreciation Price = 405000
2nd Premium = rate of premium * Depreciation Price after 1st premium / 100
2nd Premium = 2.5 * 405000 / 100
2nd Premium = Rs. 10125
Depreciation = 10% of the total amount of the vehicle
Depreciation = 10 * 405000 / 100
Depreciation = 40500
Depreciation Price = the total amount of the vehicle - Depreciation
Depreciation Price = 405000 - 40500
Depreciation Price = 364500
3rd premium = rate of premium * Depreciation Price after 2nd premium / 100
3rd premium = 2.5 * 364500 / 100
3rd premium = Rs. 9112.5
4th Premium = 0
The Total amount paid as insurance = 1st premium + 2nd premium + 3rd premium + 4th premium
The Total amount paid as insurance = 11250 + 10125 + 9112.5 + 0
The Total amount paid as insurance = Rs. 30487.5
He Claimed = Rs. 750,000
Loss Recovered = Total Claimed - Total amount paid as insurance
Loss Recovered = 750000 - 30487.5
Loss Recovered = Rs. 719512.5
Answer:
Data:
value of property =450,000
rate of premium =2.5℅
tenure =4 years
claim worth = 750,000
Required:
Loss covered =??
1st premium =2.5℅ × 450,000
= 2.5/ 100 × 450,000
= 25/ 1000 × 450,000
=25×450
= 11250