Answer to Question #277522 in Financial Math for sharif sadman

Question

Mr. Rakib has two policies A & B for property X & Y. Solve the following problem under

two condition of average. Available information are as follows:

Policy :

A. Sum insured Tk. 1000 for property X&Y

B. Sum insured Tk. 650 for property X

Value of the property

Property X: Tk. 1000

Property Y: Tk.1000

Requirements: How following loss will be shared?

a) Loss of property X for Tk.750

b) Loss of Property Y for Tk. 900

Answer 1

claim amount = (loss x Sum insured)/Value of the property

insurance company settle the following claim amounts:

for Property X:

claim amount = $(750\cdot1000)/1000=750$

for Property Y:

claim amount = $(900\cdot650)/1000=585$