Chapter: Insurance and Annuity· Mathematics & Statistics (Commerce) Part 2

The building is insured for 75% of its value. The annual premium at 0.70 percent amounts to ₹ 2,625. If the building is damaged to the extent of 60% due to fire, how much can be claimed under the policy?

Q.6 (A)(i) The building is insured for 75% of its value. The annual premium at 0.70 percent amounts to ₹ 2,625. If the building is damaged to the extent of 60% due to fire, how much can be claimed under the policy?

Doubtly Asked 29 Oct 2026 Board exam · March 2024 hsc 12th Save WhatsApp Report

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Answer: ₹ 2,25,000 can be claimed.

Premium = 0.70% of policy value: \(\dfrac{0.70}{100}\times\) policy value \(= 2625\), so policy value \(= \dfrac{2625 \times 100}{0.70} = ₹\ 3{,}75{,}000\).

Policy value = 75% of the value of the building, so value of building \(= \dfrac{3{,}75{,}000 \times 100}{75} = ₹\ 5{,}00{,}000\).

Loss = 60% of 5,00,000 = ₹ 3,00,000.

Claim \(= \text{Loss} \times \dfrac{\text{Policy value}}{\text{Property value}} = 3{,}00{,}000 \times \dfrac{3{,}75{,}000}{5{,}00{,}000} = ₹\ 2{,}25{,}000\).

Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report

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The building is insured for 75% of its value. The annual premium at 0.70 percent amounts to ₹ 2,625. If the building is damaged to the extent of 60% due to fire, how much can be claimed under the policy?

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