Question

60,000 articles costing Rs. 200 per dozen were insured against fire for Rs. 2,40,000. If 20% of the articles were burnt and 7,200 of the remaining articles were damaged to the extent of 80% of their value, find the amount that can be claimed under the policy.

Answer 1

Given, Total number of articles = 60,000

Cost of the articles = ₹ 200 per dozen

i.e., one article costs ₹ `(200)/(12)`

Policy value = ₹2,40,000 

Cost of 60,000 articles (property value) 

= Number of articles x Cost of one article

= `60,000 xx (200)/(12)`

= ₹ 10,00,000

Given, 20% of the articles were completely burnt.

∴ Value of burnt articles

= 20% of value of total articles

= `20/100 xx 10,00,000`

= ₹ 2,00,000

7,200 articles were damaged to 80% of their value. Total value of 7,200 articles 

= 7,200 x cost of one article

= `7,200 xx (200)/(12)`

= ₹ 1,20,000

∴ Loss on 7,200 articles

= 80% of value

= `(80)/(100) xx 1,20,000`

= ₹96,000

∴ Total loss:

= Value of burnt articles + Loss on 7,200 articles

= 2,00,000 + 96,000

= ₹ 2,96,000

Claim = `"Policy value"/"Property value" xx "Total loss"`

∴ Claim = `(2,40,000)/(10,00,000) xx 2,96,000`

= ₹71,040

∴ Amount that can be claimed under the policy is ₹71,040.