Question

A warehouse valued at ₹ 40,000 contains goods worth ₹ 2,40,000. The warehouse is insured against fire for ₹ 16,000 and the goods to the extent of 90% of their value. Goods worth ₹ 80,000 are completely destroyed, while the remaining goods are destroyed to 80% of their value due to a fire. The damage to the warehouse is to the extent of ₹ 8,000. Find the total amount that can be claimed under the policy.

Answer 1

Given, Property value of warehouse = ₹ 40,000

Property value of goods = ₹ 2,40,000

Policy value of warehouse = ₹ 16,000

Now, goods were insured to 90% of their value.

∴ Policy value of goods = 90% of property value

= `(90)/(100) xx 2,40,000`

= 2,16,000

Value of goods completely destroyed = ₹ 80,000

∴ Value of remaining goods = Property value of goods – Value of goods destroyed

= 2,40,000 – 80,000

= 1,60,000

The remaining goods are destroyed to 80% of their value.

∴  Loss on remaining goods

= 80% of the value of remaining goods

= `(80)/(100) xx 1,60,000`

= ₹ 1,28,000

∴ Total loss on goods = Value of goods completely destroyed + Loss on the reduced value of goods

= 80,000 + 1,28,000

= ₹ 2,08,000

Amount claimed on goods = `"Policy value fields"/"Property value of goods" xx "Loss on goods"`

= `(2,16,000)/(2,40,000) xx 2,08,000`

= ₹ 1,87,200

Loss on warehouse = ₹ 8,000

∴ Amount claimed on warehouse = `"Policy value of warehouse"/"Property value of warehouse" xx "Loss"`

= `(16,000)/(40,000) xx 8,000`

= ₹ 3,200

∴ The total amount claimed = Amount claimed on goods + Amount claimed on warehouse

= 1,87,200 + 3200

= 1,90,400

∴ The total amount that can be claimed is ₹ 1,90,400.