Question

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.

Answer 1

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