Page 168 - Misc Ebook IC 78

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(ii) The sum insured selected by the proposer and its
relationship to the total value.

(iii) The maximum probable loss , regard to the nature
of the stock.

(iv) The normal rate for the risk on full value insurance.

Generally the method chosen for rating is:
i) If cover is 75% of full value, 90% of premium is

charged.
ii) If cover is 65% of full value, 80% of premium is

charged.
iii) If cover is 50% of full value,70% of premium is

charged.
Iv) If cover is 25% of full value,50% of premium is

charged.

Q3.a) List out the exclusions which are generally
incorporated in a money policy.

Ans. The following losses are normally excluded :
(i) Shortage due to error or omission.
(ii) Loss of cash entrusted to any person other than the
insured or an employee of the insured.

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