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  3. 1. goods costing 1,00,000 were insured for 50,000.

1. Goods costing 1,00,000 were insured for 50,000. Out of these goods, 3/4 are destroyed...

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Accounting

image 1. Goods costing 1,00,000 were insured for 50,000. Out of these goods, 3/4 are destroyed by fire. The amount of claim with average clause will be (a) 37,500. (b) 50,000. (c) 75,000. 2. Fire insurance claim will be limited to the (a) actual loss suffered even though the insured value of the goods may be higher. (b) proportion of the loss as the insured value bears to the total cost. (c) both (a) and (b)). 3. The Loss of Profit Policy normally covers the following items: (a) Loss of net profit and Standing charges. (b) Any increased cost of working e.g., renting of temporary premises. (c) Both (a) and (b). 4. A plant worth 40,000 has been insured for 30,000, the loss on account of fire is 25,000. The insurance company will bear the loss to the extent of (a) 18,750 . (b) 25,000. (c) 30,000

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