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:

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

Answer 2

The correct answer is (a) Rs. 70,000.

The formula of Claim:

Claim = Loss Suffered x Insured Value/Total Cost

Given -

Loss: Rs. 50,000

Insured Value: Rs. 70,000

Total Cost: Rs. 50,000

Solution -

Put the values in the formula as follows:

Claim $= 50,000$ × $70,000$ ÷ $50,000$

$= 70,000$

Therefore, The correct answer is (a) Rs. 70,000.

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