National shipping company (NASACO) which made its accounts annually to December 31st had a fire accident...

 

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National shipping company (NASACO) which made its accounts annually to December 31st had a fire accident on July 1st 1995. They had taken out a consequential loss of profits policy for Shs.10 million which gave six months indemnity. The fire resulted in the dislocation of the business for six months. From the following details compute the amount of the claim: 1. 2. 3. 4. 5. 6. 7. 8. SHS. (Million) 15,000 Net profit and all standing charges to December 31st 1994 Uninsured standing charges Turnover to December 31st, 1994 Turnover twelve months to July 1st, 1995 Turnover six months to December 31st, 1994 26,000 Turnover period of indemnity July 1st, 1995 to December 31st, 199515,000 Additional Costs (agreed) 1,800 Saving of insured standing charges during period of indemnity 2,500 50,000 52,000 1,200 National shipping company (NASACO) which made its accounts annually to December 31st had a fire accident on July 1st 1995. They had taken out a consequential loss of profits policy for Shs.10 million which gave six months indemnity. The fire resulted in the dislocation of the business for six months. From the following details compute the amount of the claim: 1. 2. 3. 4. 5. 6. 7. 8. SHS. (Million) 15,000 Net profit and all standing charges to December 31st 1994 Uninsured standing charges Turnover to December 31st, 1994 Turnover twelve months to July 1st, 1995 Turnover six months to December 31st, 1994 26,000 Turnover period of indemnity July 1st, 1995 to December 31st, 199515,000 Additional Costs (agreed) 1,800 Saving of insured standing charges during period of indemnity 2,500 50,000 52,000 1,200

Answer rating: 100% (QA)

Answer The amount of the claim is calculated as follows 1 Net Profit and all Standing Charges to Dec... View the full answer