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Question
Solve the following :
A godown valued at ₹80,000 contained stock worth ₹4,80,000. Both were insured against fire. Godown for ₹50,000 and stock for 80% of its value. A part of stock worth ₹60,000 was completely destroyed and the rest was reduced to 60% of its value. The amount of damage to the godown is ₹40,000. Find the amount that can be claimed under the policy.
Solution
Given, Property value of godown = ₹80,000.
Property value of stock =₹4,80,000
Policy value of godown = ₹50,000
Stock is insured for 80% of its value.
Policy value of stock
= 80% of its property value
= `(80)/(100) xx 4,80,000`
= ₹3,84,000
Value of stock completely destroyed = ₹60,000
∴ Value of remaining stock = Property vale of stock – Value of stock completely destroyed
= 4,80,000 – 60,000
= ₹4,20,000
Value of remaining stock is reduced to 60% of its value. Thus, loss is to the extent of 40%.
∴ Loss on remaining stock
= 40% of its value
= `(40)/(100) xx 4,20,000`
= ₹1,68,000
∴ Total loss of the stock
= Value of stock completely destroyed + Loss on reduced value of stock
= 60,000 + 1,68,000
= 2,28,000
∴ Claim for stock = `"Policy value of stock"/"Property value of stock" xx "Loss on stock"`
= `(3,84,000)/(4,80,000) xx 2,28,000`
= ₹1,82,400
Loss on godown = ₹40,000,
Claim for godown = `"Policy value of godown"/"Property value of stock" xx "Loss on godown"`
= `(50,000)/(80,000) xx 40,000`
= ₹25,000
∴ Total amount claimed
= Amount claimed on stock + Amount claimed on godown
= 1,82,400 + 25,000
= 2,07,400
∴ Amount that can be claimed under the policy is ₹ 2,07,400.
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