Question

Find the premium on property worth Rs.12,50,000 at 3% if the property is insured to the extent of 80% of its value.

Answer 1

Property value = Rs. 12,50,000
Insured value = 80% of property value = 12,50,000 x `80/100` = Rs. 10,00,000

Premium at 3% = 10,00,000 x `3/100` = Rs. 30,000