Question

Goods worth 40,000 are insured for
Rs. 30,000. It is completely destroyed
by the fire. The Policy contains an
average clause. The loss to be done by
the insurance company will be
Rs. 20,000
Rs. 30,000
Rs. 40,000
Rs. 50,000​

Answer 1

Explanation:

Solution :

Goods worth 40,000

insured for Rs. 30,000

It is completely destroyed by the fire

The Policy contains an average clause

Find :

The loss to be done by the insurance company

Claim amount = Actual loss × Insured amount / Value of goods or property at the date of fire

$\sf{\longrightarrow{\dfrac{40000 \: \times \: 30000}{40000}}}$

$\sf{\longrightarrow{30000}}$

The loss to be done by the insurance company will be Rs. 30,000

Answer 2

Explanation:

The Policy contains an average clause :

Claim = (Insured Value) / (Total cost ) × Loss suffered

Or

Claim = (Policy value ) / (property value or goods value) × loss

=> 30,000 / 40,000 × 40,000

=> 30,000

claim = Rs. 30,000

option = Rs. 30,000

Hence,

The loss to be done by the insurance company = Rs. 30,000