Page 148 - Misc Ebook IC 78

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(xi) Location of premises & special security features like
Burglar alarms & Armed guards round the clock.

(xii) Accounting methods employed, level of control,
supervision etc.

Q6.b) Explain how premium is calculated in money
insurance policy.

Ans. In money insurance policy, the premium is charged on
the basis of Section I and Section II of the policy.

Section I - The premium is charged at a rate per mille
on the estimated amount of transit during the policy
period, subject to adjustment on the expiry of the policy.

Section II - The premium is charged is the rate percent
on the sum insured chosen.

Q7.a) Name the various types of commercial fidelity
guarantee covers available with the insurers
and explain the salient features of each.

Ans. There are several types of commercial fidelity

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