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Reinsurance Management
Net Retained loss on claim of INR 100 Cr.
Total Loss = Rs. 100 Cr
Net Retained loss cession (in %) = 1.60% of 100%
1.60% of Rs. 100 Cr.
Rs. 1.6 Cr.
Q.8) Calculate the profit commission on a sliding
scale basis payable on :
a) annual basis
b) three year average basis
on the following treaty result for 2011 :
Premium : Rs. 85,00,000
Portfolio entry :
Premium : Rs. 18,00,000
Loss : Rs. 43,00,000
Commission : 30%
Claims Paid : Rs. 65,00,000
Portfolio withdrawal :
Premium : Rs. 8,00,000
Loss : Rs. 6,00,000
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