# A warehouse valued at Rs. 10,000 contained goods worth Rs. 60,000. The warehouse was insured against fire for Rs. 4,000 and the goods to the extent of 90% of their value. - Mathematics and Statistics

Sum

A warehouse valued at Rs. 10,000 contained goods worth Rs. 60,000. The warehouse was insured against fire for Rs. 4,000 and the goods to the extent of 90% of their value. A fire broke out and goods worth Rs. 20,000 were completely destroyed, while the remainder was damaged and reduced to 80% of its value. The damage to the warehouse was to the extent of Rs. 2,000. Find the total amount that can be claimed.

#### Solution

Property value of warehouse = Rs 10,000
Property value of goods = Rs 60,000

Policy value of warehouse = Rs 4,000
Policy value of goods = 90/100 xx 60.000 = Rs 54,000

Complete loss = 20,000

Claim = loss x ("policy value")/("property value")

therefore "Claim" = 20000 xx 54000/60000
= Rs 18,000

Loss of remainder = 40,000 - (80/100 xx 40000)

= 40,000 - 32,000
= Rs 8000

Claim of warehouse = 4000/10000 xx 2000
= Rs 800

Claim of goods = 54000/60000 xx 8000
= rs 7,2000

Total claim = Rs 18,000 + Rs 7200 + Rs 800
= Rs 26,000

the total amount that can be claimed is Rs 26,000

Concept: Insurance and Annuity
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