Insurance claim on profit
This query is : Resolved
25 September 2011
From the particulars given below prepare a claim for loss of profits
1. The sum of the policy is rs.51000
2. The indemnity period is 9 months
3. The fire occurred on 31st jan 1977 and the monthly sales figures for 1976 ans 1977 are as follows:
Month 1976 1977
Jan 17000 17000
Feb 16000 5500
Mar 24000 6000
Apr 17000 6000
May 15500 7000
June 16000 7000
July 16000 8500
Aug 16500 9500
Sep 15000 10400
Oct 15000 10000
Nov 16000 13000
Dec 16000 14000
4. The net loss for the year ended 31st dec 1976 was rs.35000 after debiting standing charges of rs.125000 of which the insured charges amounts to rs.100000
5. The total additional expenditure incurred in respect of the indemnity period was rs.30000
6. The saving in the insured standing charges for the indemnity period amounted to rs. 2760
7. It was agreed between the adjuster and insured that, but for the fire, the sales for the month of feb 1977 to dec 1977 owing to adverse trading conditions, would have been lower than those for the corresponding months of 1976. For the purpose of loss assessment it was agreed that a reduction of 10% should be made in the relative pre-fire sales figures.
1. The sum of the policy is rs.51000
2. The indemnity period is 9 months
3. The fire occurred on 31st jan 1977 and the monthly sales figures for 1976 ans 1977 are as follows:
Month 1976 1977
Jan 17000 17000
Feb 16000 5500
Mar 24000 6000
Apr 17000 6000
May 15500 7000
June 16000 7000
July 16000 8500
Aug 16500 9500
Sep 15000 10400
Oct 15000 10000
Nov 16000 13000
Dec 16000 14000
4. The net loss for the year ended 31st dec 1976 was rs.35000 after debiting standing charges of rs.125000 of which the insured charges amounts to rs.100000
5. The total additional expenditure incurred in respect of the indemnity period was rs.30000
6. The saving in the insured standing charges for the indemnity period amounted to rs. 2760
7. It was agreed between the adjuster and insured that, but for the fire, the sales for the month of feb 1977 to dec 1977 owing to adverse trading conditions, would have been lower than those for the corresponding months of 1976. For the purpose of loss assessment it was agreed that a reduction of 10% should be made in the relative pre-fire sales figures.
07 October 2011
It seems that you are a CA student. Kindly do not ask to solve the question by others. Try to solve yourself. This will help you in the examination otherwise if you read the solved answer it will be of no use to you.
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07 October 2011
sir,
yes i'm a CA student.
Just passed higher secondery exm and CPT by this June. Kindly help me to solve this problem.
yes i'm a CA student.
Just passed higher secondery exm and CPT by this June. Kindly help me to solve this problem.
03 August 2023
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