Insurance

(i) Life Insurance-

(ii) Marine Insurance-
(iii) Fire Insurance-

### Life Insurance###

(a) Term Policy- mvgwqK wegv
(b) Endowment Policy- †gqvw` wegv
(c) Pure Endowment Policy-yweï× †gqvw` wegv
(d) Annuity Policy- e„wË wegv
Formula
NSP=Net Single Premium NAP= Net Annual Premium
(a) Term Policy:

NSP= NAP=Not Applicable

.

(b) Endowment Policy:

( ) ( )
NSP= NAP=
.

(c) Pure Endowment Policy:

NSP= NAP=
.

(d) Annuity Policy:

NSP= NAP=Not Applicable

.

2
 Life Insurance
01: Working
Year Age Insured No. of Claim PV PV of Death
Persons Death Factor Claim
Persons
1 2 3 4 5 6 7= × " × #
1 56 20,000 500 10,000 0.909
2 57 19,500 800 10,000 0.826
3 58 18,700 1200 10,000 0.751
4 59 17,500 1500 10,000 0.683
5 60 16,000 2000 10,000 0.621
Total PV of Death Claim 4,28,30,000

Req: We Know,
,&',(),)))
NSP= = =2142
. &),)))

02:
Year Age Insured No. of Death Claim PV Factor PV of Death
Persons Persons Claim
1 2 3 4 5 6=(1=÷ . )" =) 7= × " × #
1 55 50000 1500 5000 0.952
2 56 48500 2000 5000 0.907
3 57 46500 3500 5000 0.864
4 58 43000 4000 5000 0.822
5 59 39000 6000 5000 0.784
Total PV of Death Claim 71290000

We Know,
+ &,))))
NSP= = =1426
. "))))

3
P-3:
W-1
Year Age Insured No. of Claim PV Factor PV of Death
Persons Death Claim
Persons
1 2 3 4 5 6=(1=÷ . ) =) 7= × " × #
1 46 6,512 102 20,000 0.962
2 47 6,410 205 20,000 0.925
3 48 6,250 350 20,000 0.889
4 49 5,855 405 20,000 0.855
5 50 5,450 550 20,000 0.822
Total PV of Death Claim 2,79,45,480

W-(ii)
No. of Life Persons=5450-550=4900
PV of Life Claim= 4,900 × &), ))) ×0.822=8,05,56,000
Req:
We Know,
( ) ')""#))) &+, " ')
NSP= = =16662
. #" &

4
P-4:
Req-(a):

PV for 1st Year= =0.909

( )

PV for 2nd Year= =0.826

( )&

PV for 3rd Year= =0.751

( )(

PV for 4th Year= =0.683

( )

PV for 5th Year= =0.621

( )"

Req-(b):
W-1
Year Age Insured No. of Claim PV Factor PV of Death
Persons Death Claim
Persons
1 2 3 4 5 6=(1=÷ . ) =) 7= × " × #
1 55 5,202 52 1,00,000 0.909
2 56 5,150 100 1,00,000 0.826
3 57 5,050 150 1,00,000 0.751
4 58 4,900 205 1,00,000 0.683
5 59 4,695 195 1,00,000 0.621
Total PV of Death Claim 5,03,62,800

W-(ii)
No. of Life Persons=4,695-195=4,500
PV of Life Claim= 4,500 × , )), ))) ×0.621=27,94,50,000

5
W-iii
Year Age Insured TK. 1 collected PV PV of TK. 1
Persons from insured Factor collected from
persons insured persons
1 2 3 4 5 6= × "
1 55 5,202 5,202 1
2 56 5,150 5,150 0.909
3 57 5,050 5,050 0.826
4 58 4,900 4,900 0.751
5 59 4,695 4,695 0.683
Total PV TK. 1 collected from insured persons= 20,941

Req:
We Know,
( ) &+, ")))) ")(#&'))
NAP= = =15,750
&),

P-5:
NAP=1,383

P-6:
'+ ) +"))
NSP= = = # &&"
. ()"#)

Here,
No. of Life Persons=28000-525=27475
PV of Life Claim= 27475 × ))))) ×0.681=187, 10, 47, 500

6
P-7:
W-(i)
No. of Life Persons=2000-250=1750
PV of Life Claim= 1750 × "))) ×0.783=6851250
W-(ii)
Year Age Insured TK. 1 collected PV PV of TK. 1
Persons from insured Factor collected from
persons insured persons
1 2 3 4 5 6= × "
1 1
2 0.952
3 0.907
4 0.863
5 0.822
Total PV TK. 1 collected from insured persons= 10,506

We Know,
#'" &")
NAP= = =652
)")#

7
P-8:W-1
Year Age Insured No. of Death Claim PV Factor PV of Death
Persons Persons Claim
1 2 3 4 5 6=(1=÷ 7= × " × #
. )# =)
1 48 4,375 100 10,000 0.943
2 49 4,275 175 10,000 0.890
3 50 4,100 200 10,000 0.840
4 51 3,900 250 10,000 0.792
5 52 3,650 350 10,000 0.747
Total PV of Death Claim 87,75,000
W-(ii)
No. of Life Persons=3,650-350=3,300
PV of Life Claim=3,300 × ), ))) ×0.747=2,46,51,000
W-iii
Year Age Insured TK. 1 collected PV PV of TK. 1
Persons from insured Factor collected from
persons insured persons
1 2 3 4 5 6= × "
1 48 4,375 4,375 1
2 49 4,275 4,275 0.943
3 50 4,100 4,100 0.890
4 51 3,900 3,900 0.840
5 52 3,650 3,650 0.792
Total PV TK. 1 collected from insured persons 18,222
Req: (i)
We Know,
( ) '+,+",))) &, #," ,)))
NSP= = =7,640
. ,(+"

Req: (ii)
We Know,
( ) '+,+",))) &, #," ,)))
NAP= = =1,834
',&&&

8
 Marine Insurance
P-10:
Particulars TK TK TK
Insured Value of 10000 bags (10000× )) 100000

Insured Value of 1000 bags (1000× )) 10000

Sales Value of Damage Goods of its

undamaged condition (1000× '. ")) 8500
(-) Sales Value of Damage Goods of its
damaged condition (1000× () 3000

Actual Loss 5500

Proportionate Loss
-
=. ×/ ))))
- × ""))
'")) 6471
(+) Other Exp: 60
(3000× &%)
Sales Commission 100
Survey Fee 150
Sales Exp.

Actual Amount of Claim/ Net Partial Loss 6781

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 Fire Insurance
(i) Single Company:

Amount of Claim= ×/
/

(ii) Multi Company:

Amount of Claim= ×/

P-12:
We Know,

Amount of Claim= ×/
/

"))))
= × (")))
#))))

= 10938
P-16:
For Delta Insurance Company:

Amount of Claim= ×/
'))))
= × ())))
')))) ))))

= 20000
For Prime Insurance Company:

Amount of Claim= ×/
))))
= × ())))
')))) ))))

= 10000

10