Compulsory Question S No B-1 Please compute the premium for the following risk. Sum Insured 10,00,000...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Compulsory Question S No B-1 Please compute the premium for the following risk. Sum Insured 10,00,000 75,00,000 5,00,000 30,00,000 30,00,000 Description 1 Factory Building 2 Plant & Machinery 3 Furniture and Fixtures 4 Raw Material 5 Goods in Progress -2- Section B Zone Dwellings other than Co-operative Housing Society Non-Industrial - Co-operative Housing Society, Hotels, Shops as per Section-III of erstwhile Tariff Industrial - including Standalone Storage outside the manufacturing units, Utilities outside the manufacturing units. The client wants an SFSP policy including STFI with a cover for EQ. No claims in the last 3 years, excellent housekeeping and maintenance. Risk inspection and follow up done every year. Sprinklers spread across the factory, and sand buckets are there. The property is in Jharia, Dhanbad, Jharkhand. The EQ zone is III. Due to non-availability of hand held FEA, the client is not entitled to a discount of 5%, though a Tariff discount of 25% could be allowed if the Underwriter is convinced about the risk being "good risk". Earthquake rates to be charged For Earthquake, the rates have been adopted zone wise and Industrial and non-industrial wise which is as under. The Zones are classified as per the current zones in the erstwhile tariff. IVIII 0.050.05 0.050.10 Roll No................. 0.050.10 CILO 1,2,3,4 20 marks -3- 11 0.05 0.15 0.25 The AIFT premium rate for the SFSP risk is1.35%0. 1) Calculate the premium. 2) Can we design any other incentive for the client, please elaborate? 0.05 10 marks 0.25 0.50 7 marks 3 marks B-2 The above client also wants an FLOP cover for 15,00,000 with an indemnity period of 6 months. The discounting structure remains same. a) What is the basis rate and the premium? 7 marks b) During the indemnity period, there was a loss of revenues on account of the heating of the ground due to underground coal burning. How much claim is payable? 3 marks 3/3 Compulsory Question S No B-1 Please compute the premium for the following risk. Sum Insured 10,00,000 75,00,000 5,00,000 30,00,000 30,00,000 Description 1 Factory Building 2 Plant & Machinery 3 Furniture and Fixtures 4 Raw Material 5 Goods in Progress -2- Section B Zone Dwellings other than Co-operative Housing Society Non-Industrial - Co-operative Housing Society, Hotels, Shops as per Section-III of erstwhile Tariff Industrial - including Standalone Storage outside the manufacturing units, Utilities outside the manufacturing units. The client wants an SFSP policy including STFI with a cover for EQ. No claims in the last 3 years, excellent housekeeping and maintenance. Risk inspection and follow up done every year. Sprinklers spread across the factory, and sand buckets are there. The property is in Jharia, Dhanbad, Jharkhand. The EQ zone is III. Due to non-availability of hand held FEA, the client is not entitled to a discount of 5%, though a Tariff discount of 25% could be allowed if the Underwriter is convinced about the risk being "good risk". Earthquake rates to be charged For Earthquake, the rates have been adopted zone wise and Industrial and non-industrial wise which is as under. The Zones are classified as per the current zones in the erstwhile tariff. IVIII 0.050.05 0.050.10 Roll No................. 0.050.10 CILO 1,2,3,4 20 marks -3- 11 0.05 0.15 0.25 The AIFT premium rate for the SFSP risk is1.35%0. 1) Calculate the premium. 2) Can we design any other incentive for the client, please elaborate? 0.05 10 marks 0.25 0.50 7 marks 3 marks B-2 The above client also wants an FLOP cover for 15,00,000 with an indemnity period of 6 months. The discounting structure remains same. a) What is the basis rate and the premium? 7 marks b) During the indemnity period, there was a loss of revenues on account of the heating of the ground due to underground coal burning. How much claim is payable? 3 marks 3/3
Expert Answer:
Answer rating: 100% (QA)
B1 Premium calculation 1 Factory Building Sum Insured 7500000 AIFT rate 135 Discount 25 Premium 7500... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
An industrial plant claims to discharge no more than 1000 gallons of wastewater per hour, on the average, into a neighboring lake. An environmental action group decides to monitor the plant, in case...
-
A commercial building is insured under a fire policy that has a face value of 80% of the buildings appraised value. The annual insurance premium is 3/8% of the face value of the policy and the...
-
An American manufacturing company has imported industrial machinery at a price of FC4.6 million. The machinery will be delivered and paid for in six months. For planning purposes, the American...
-
Models that pertain to the distribution of a resource within supply chains are often referred to as networks. Distribution among these networks is key to the success of a business while also keeping...
-
1. Therapists hear patients anger all day long. How can a therapist know for sure whether a patient is serious in making a threat? 2. Why has this case reached the United States Supreme Court? Does...
-
a. If the total enzyme concentration in Problem 7 was 1 nmol/L, how many molecules of substrate can a molecule of enzyme process in each minute? b. Calculate kcat/KM for the enzyme reaction in...
-
Find the greatest common divisor of 1,400 and 250 by listing all divisors of each number.
-
On December 31, 2008, Ed Abbey Co. performed environmental consulting services for Hayduke Co. Hayduke was short of cash, and Abbey Co. agreed to accept a $200,000 zero-interest-bearing note due...
-
Nash Corporation wishes to exchange a machine used in its operations. Nash has received the following offers from other companies in the industry. 1. Crane Company offered to exchange a similar...
-
In 1879, A.A. Michelson measured the velocity of light in air using a modification of a method proposed by the French physicist Foucault. Twenty of these measurements are in table 6E.27 (the value...
-
can someone please help me with these exercises? 2.2. In the Fairyland country, the return on the market portfolio is 15,45%, and standard deviation of market return is 12,1% and the risk free return...
-
Desdisqui Biscuits manufactures Biscuit A at a UVC of PHP 150.00 and Biscuit B at a UVC of PHP 250.00. Desdisqui Biscuits sells its biscuits in a package where each package contains 3 Biscuit As and...
-
Consider specifically careers related to developmental psychology. What do developmental psychologists who have earned a Ph.D. do? What fields might they work in? Then assume you might not have a...
-
What are some beneficial and detrmental trends you think will affect health psychology in the future? Where can you learn more about careers and training in health psychology after graduation?...
-
Develop an algorithm for determining from a given board who won (Player X, Player Y, or no one). Remember that if a player gets three in a row horizontally, vertically, or diagonally they win. Assume...
-
How do structuralist approaches elucidate the underlying systems of signs and symbols that shape cultural meaning and social behavior ?
-
Part A :Based on the information provided on the U.S Securities and Exchange Commission (https://www.sec.gov/investor/pubs/tenthingstoconsider.htm)list at least two strategies that can help an...
-
Drainee purchases direct materials each month. Its payment history shows that 65% is paid in the month of purchase with the remaining balance paid the month after purchase. Prepare a cash payment...
-
Sherry rents her vacation home for 6 months and lives in it for 6 months during the year. Her gross rental income during the year is $4,000. Total real estate taxes for the home are $950, and...
-
Olive Corporation was formed and began operations on January 1, 2012. The corporation's income statement for the year and the balance sheet at year-end are presented below. The corporation made...
-
Larry and Lisa Williams, both 33 years old, have been married for 9 years. They live at 638 Arctic Way, Fairbanks, AK 99701. Lisa's Social Security number is 445- 81-1423 and Larry's is 798-09-8526....
-
Why are Cynthia Cooper and Scott Sullivan significant in detecting financial reporting fraud?
-
Why might management be interested in forensic accounting services?
-
What is a red flag with respect to earnings?
Study smarter with the SolutionInn App