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TASK 2 : Calculate Premium and Claim value form the given data for the Starbuds Insurance Company for the year 2019. A. Premium Earned B.

TASK 2 :

Calculate Premium and Claim value form the given data for the Starbuds Insurance Company for the year 2019.

A. Premium Earned

B. Claims Incurred

Starbuds General Insurance SAOG submits the following information for the year ended 31 December 2019.

Amount (RO)

Amount (RO)

Directors Fees

90,000

Interest received

21,000

Dividend received

122,000

Fixed Assets ( 1.1.2019)

96,000

Provision for Taxation ( as on 1.1.2018

56,000

Income-tax paid during the year

58,000

Amount (RO)

Fire

Marine

Outstanding Claims on 1.1. 2019

60,960

30,240

Claims paid

432,000

345,600

Reserve for Unexpired Risk on 1. 1. 2019

864,000

604,800

Premiums Received

1,944,000

1,425,600

Agents Commission

172,800

86,400

Expenses of Management

259,200

194,400

Re-insurance Premium ( Paid )

108,000

64,800

The following additional information is available

  1. Depreciation on Fixed Assets to be provided @ 10 % p.a.
  2. Interest accrued on investments R O 13,500
  3. Claims outstanding on 31.12.2019
    1. Fire Insurance RO 43,200
    2. Marine Insurance RO 64,800
  4. Premium outstanding on 31.12.2019
    1. Fire Insurance RO 129,600
    2. Marine Insurance RO 86,400
  5. Reserve for unexpired risk maintained at 50 % and 100 % in respect of Fire and Marine Insurance respectively

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