Question

Property value = ₹ 12,50,000

Rate of premium, r = ₹ 3%

If property is fully insured, the policy value is same as property value therefore policy value = `square`

Premium = `"r"/100 xx "policy value"`

= `square/100 xx 12,50,000`

= `square`

Answer 1

property is fully insured, the policy value is same as property value therefore policy value = ₹ 12,50,000

Premium = `"r"/100 xx "policy value"`

= `3/100 xx 12,50,000`

= 37,500