Question

If total stock is Rs 50,000; the value of policy is, Rs 70,000 and the entire stock is lost, the claim will be for
a)Rs 70,000 b) Rs 35,714
c)Rs 50,000 d) Rs 60,000​

Answer 1

Explanation:

the entire stock is lost,

So,

Claim = Policy value / Total stock × Loss

= 70,000/50,000 × 50,000

= 70,000

∴ a) Rs 70,000

The claim will be for Rs. 70,000