Cases for Fire Insurance
Case 1:
Opu had a house worth Tk. 100,000 was insured for Tk.
60,000 under an average policy. The house was
destroyed by fire & loss was Tk. 40,000. Will Mr. Opu
get the full coverage for the loss of Tk. 40,000 from
insurance company? How much Opu can recover from
the insurance company ? How much Opu needs to
bear?
Solution:
-No. Mr. Opu will not get the full coverage.
-Insurance claim= insured sum/ value of the property
*actual loss
= 60000/100000 *40000 = 24000
-Opu (insured) has to bear : (40000-24000) = Tk.
16000
Case 2:
Sobuj had a factory building worth Tk. 250,000 was
insured for Tk. 200,000 under an average policy. The
factory was destroyed by fire & loss ascertained was
Tk. 150,000. How much sobuj can recover from
insurance company? How much he needs to bear?
Solution:
-Insurance claim= insured sum/ value of the property
*actual loss
= 200000/250000* 150000 =Tk. 120,000
-Sobuj has to bear= 150000-120000 = Tk. 30000
Case 3:
X & Y Company had taken a fire insurance policy for its
factory building from Company A for Tk. 2,50,000 and
from Company B for Tk. 1,50,000. The factory was
destroyed by fire and actual loss ascertained was Tk
1,00,000. How much the insured can recover from each
insurer?
Solution:
Contribution from Company A
= policy value of A company/total policy(A+B) *actual
loss
= 250000/(250000+150000) * 100000 = Tk. 62500
Contribution from Company B
= Policy value of B Co/ total policy value (A+B) * actual
loss
= 150000/ 250000+150000*100000 = Tk. 37500
Case 4:
Hasib co. ltd. had insured its factory worth Tk 2,00,000 to
Company A for Tk. 1,00,000 and company B for Tk.
60,000 under an average policy. The house was
destroyed by fire and actual loss was ascertained Tk.
80,000.
a) Will Hasib Co. Ltd. get the full coverage for the loss
of Tk. 80,000 from company (A+B)?
b) Calculate the amount of insurance claim
c) Calculate the liability of insurer Co. A
d) Calculate the liability of insurer Co. B
Solution:
a) No
b) Insurance claim = insured sum/value of the
property *amount of loss = 160000/
200000 *80000 = Tk. 64000
Insured will bear = (80000 – 64000) = Tk. 16,000
c) Contribution from Company A
= policy value of A co/total policy value (A+B) * actual
loss
= 100000/100000+60000 * 64000 = Tk. 40,000
d) Contribution from Company B
= policy value of B co/ total policy* actual loss
= 60000/160000 * 64000 = Tk. 24,000
Case 5:
Mr. Karim had insured his house and furniture for TK.
50,000 with Company X and only house for TK. 30,000
with Company Y and. The loss was occurred by accident
and the actual loss calculated for house was TK. 20,000
and for furniture TK. 5,000. Which policy is suitable in this
situation? How much the insured recover from each
insurer?
Solution: Floating Policy
Solution:
If the payment for the loss of furniture made first,
Policy value of x company= 50,000-5000
= Tk. 45,000
Policy Value of y Company = Tk. 30,000
Contribution of x company:
45000/45000+30000 * 20000
=Tk. 12000
Contribution of y company:
30000/45000+30000*20000
= Tk. 8000