Which of the following is the sequence for
computing Claim in Fire Insurance ?
Computing loss, computing stock on date
of fire, computing claim
computing stock on date of fire,
computing loss, computing claim
computing claim, computing loss,
computing stock on date of fire
computing profit, computing loss,
computing claim
Answers
Answer:
ADVERTISEMENTS: The actual amount of claim is determined by the formula: Claim = Loss Suffered x Insured Value/Total Cost. The object of such an Average Clause is to limit the liability of the Insurance Company.
Filing fire insurance claims enables you to repair or even rebuild your damaged home. "Actual cash value" policies entitle you to the amount it would take to return your home, including its contents, to its pre-fire fair market value. ... So, as long as it's the same value as your old lot, your insurance covers it.
90-120 days
Most fire claims, if handled correctly, should settle within 90-120 days.. Claimants who are unfamiliar with the fire claim process are likely to make mistakes which result in settlement delays.
Answer:
Formula for Calculating the Actual Amount of Claim:
ADVERTISEMENTS:
The actual amount of claim is determined by the formula:
Claim = Loss Suffered x Insured Value/Total Cost. The object of such an Average Clause is to limit the liability of the Insurance Company. Both the insurer and the insured then bear the loss in proportion to the covered and uncovered sum. For instance, if Rs 1,00,000 policy is taken for Rs 1,50,000 stocks, then the under-insurance will be by Rs 50,000.
Here, the insurer and insured will be the co-insurers for Rs 1, 00,000 and Rs 50,000 respectively. When, in such a case, Rs 30,000 stock is lost, then the Insurance Company indemnifies only Rs 20,000 i.e. 30,000 x 1,00,000/1,50,000 and the balance Rs 10,000 i.e. Rs 30,000 x 50,000/1,50,000 is met by the insured himself.
Thus, the under-insurance relieves the insurer and penalizes the insured for under-insurance. Irrespective of the insertion of such Clause, the entire policy amount insured, and then Insurance Company pays only the amount insured. When the loss is more than the sum insured, the insured can recover the whole amount in spite of Average Clause.