Advertisements
Advertisements
Question
A shop and a godown worth ₹ 1,00,000 and ₹ 2,00,000 respectively were insured through an agent who was paid 12% of the total premium. If the shop was insured for 80% and the godown for 60% of their respective values, find the agent's commission, given that the rate of premium was 0.80% less 20%
Solution
Given, Value of shop (property value) = ₹ 1,00,000
Value of godown (property value) = ₹ 2,00,000
Rate of commission = 12%
Shop was insured for 80% of its value.
Policy value = 80% of its property value
= `80/100 xx 1,00,000`
= ₹ 80,000
Godown was insured for 60% of its value.
∴ Policy value of godown = 60% of its property value
= `60/100 xx 2,00,000`
= ₹ 1,20,000
Total policy value = Policy value of shop + Policy value of godown
= 80,000 + 1,20,000
= 2,00,000
Rate of premium is 0.80% less 20%
i.e., 0.80 − 20% of 0.80
= 0.80 − 0.16
= 0.64%
∴ Amount of premium = 0.64% of total policy value
= `0.64/100 xx 2,00,000`
= ₹ 1,280
Commission of agent = 12% of amount of premium
= `12/100 xx 1,280`
= 153.6
∴ Agent’s commission is ₹ 153.6
APPEARS IN
RELATED QUESTIONS
A building is insured for 75% of its value. The annual premium at 0.70 percent amounts to ₹ 2,625. If the building is damaged to the extent of 60% due to fire, how much can be claimed under the policy?
A stock worth ₹ 7,00,000 was insured for ₹ 4,50,000. Fire burnt stock worth ₹ 3,00,000 completely and damaged the remaining stock to the extent of 75 % of its value. What amount can be claimed under the policy?
A warehouse valued at ₹ 40,000 contains goods worth ₹ 2,40,000. The warehouse is insured against fire for ₹ 16,000 and the goods to the extent of 90% of their value. Goods worth ₹ 80,000 are completely destroyed, while the remaining goods are destroyed to 80% of their value due to a fire. The damage to the warehouse is to the extent of ₹ 8,000. Find the total amount that can be claimed under the policy.
State whether the following is True or False :
General insurance covers life, fire, and theft.
Multiple choice questions:
The amount which can be demanded under the policy is ______
Multiple choice questions:
A shop valued ₹ 2,00,000 is insured at 80% of it’s value. If the rate of premium is 4%, then the premium is ______
Multiple choice questions:
If the claim under the policy is ₹ 4,000 and ratio of property value to policy value is 5:4 then loss occurred is ______
Multiple choice questions:
The period for the fire insurance policy is ______
Multiple choice questions:
Premium is paid on ______ value
A merchant takes fire insurance policy to cover 80% of the value of his stock. Stock worth ₹ 80,000 was completely destroyed in a fire. while the rest of stock was reduced to 20% of its value. If the proportional compensation under the policy was ₹ 67,200, find the value of the stock
