Question

Amount of the insurance policy is ₹ 50,000. Stock on hand on the date of fire is ₹ 70,000 of this , Stock destroyed is estimated at ₹ 35,000 Calculate the claim admitted by the insurance company in case of Average clause​

Answer 1

Rs.24,000

hope it help you

Answer 2

Explanation:

Solution :

• In case of Average clause :

Insurance claim =

(Insured Value ÷ Total cost of stock on the date of fire) × Loss of Stock

$\sf{\frac{Insured \: Value}{Total \: Cost \: Of \: Stock \: on \: The \: Date \: Of \: Fire} \times\:Loss \: of \: Stock}$

$\sf{\frac{50,000}{70,000} \: \times \: 35,000}$

= 25,000

Amount of Claim = ₹ 25,000

Hence,

The claim admitted by the insurance company in case of Average clause = ₹ 25,000