Page 117 - Liability Insurance IC74
P. 117
Guide for Liability Insurance
has submitted the following information:
Ans:
Limit of Liability Required - AOA - Rs 30 lacs
AOY - Rs 90 lacs
Ratio of AOA:AOY - 1:3
Number of units 5 - Wants to cover pollution
extension
Turnover of all units - 250 crores
Basic rate - 0.37 per mille
The Multiplier factor for AOA Limit (Rs 30 lacs) is as under :
Up to Indemnity limit of 25 lacs = 26
Up to Indemnity limit of 30 lacs = 25
Multiplier for Multiple units = 2.5
Turnover extra is 120 % of premium Rs. 91,800
Pollution extra is 30 % of total premium
Calculate the premium for Industrial Risk.
Ans. Basic Rate = 0.37 p.m
Multiplier = 25
Rate on AOA = 25 x 0.37
= 9.25 p.m
Premium on Indemnity = 30,00000 x 9.25
= 27750000
Turnover extra = 91,800 x 120% =
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