Md.

Kawsar Ahmed
ID: 132-11-3325

Marine Insurance Math & Solution

Problem-1:
A cargo consisting for 20,000 bags was insured for TK. 2,00,000. But 2,000 bags were damaged and would realized
TK. 3/- per bag. The following expense also incurred by the insured, 1% sales commission. TK 50 as safety fee and
TK. 60 as sales expenses. You are required-

a) To prepare a particular average statement assuming that goods would have realized TK. 9 per bags in their
undamaged condition and the policy is valued.

Solution-1:
Particular average statement showing the amount of partial loss and the amount of insurance claim

When policy is valued

Particulars Rate Taka Taka

Insured value of 20000 bags 10 2,00,000
Insured value of damages 2000 bags 10 20,000
Market value of damages 2000 bags in undamaged condition 9 18,000
Sales value of damages 2000 bags 3 6000

Amount of actual loss 12000

Adjustment insurance claim ( in case of valued policy):

Proportionate loss =
Insured value of damaged bags
× Actual Loss
Market value of damaged bags
13,333.33
20,000
= ×12,00 0
18,000

Add: Extra Expense Incurred:

60
Sales commission @1% at tk 6000
50
Survey fee
60
Sales expenses 170
Actual amount of insurance claim 13,503.33

Copy By Md. Kawsar Ahmed

 Md. Kawsar Ahmed
ID: 132-11-3325

Problem-2:
A cargo consisting of 10,000 bags was insured for TK. 80,000. But 1,200 bags of cargo were damaged and would
realized TK. 3/- per bag. The following expense were also incurred by the insured.

Sales Commission, 2%

Survey fee, TK. 50

Sales expenses, TK. 100

a) Prepare a particular average statement assuming that the goods would have realized TK. 9/- per bag in their
undamaged condition and the policy is valued.
b) Prepare a particular average statement assuming that the goods would have realized TK. 7/- per bag in their
undamaged condition and the policy is valued.
c) State what would be the extent of claim in each of the above two cases if the policy is unvalued.

Copy By Md. Kawsar Ahmed

Md. Kawsar Ahmed
ID: 132-11-3325

Solution-2:
a. When policy is undervalued and market value of undamaged bags estimated TK.9 per bags.

Particulars Rate Taka Taka

Insured value of 10,000 bags 8 80,000
Insured value of damages 1,200 bags 8 9,600
Market value of damages 1,200 bags in undamaged condition 9 10,800
Sales value of damages 1,200 bags 3 3,600

Amount of actual loss 7,200

Adjustment insurance claim ( in case of valued policy):

Proportionate loss =
Insured value of damaged bags
× Actual Loss
Market value of damaged bags
6,400
9,600
= ×7,200
10,800

Add: Extra Expense Incurred:

72
Sales commission @2% at TK.3,600
50
Survey fee
100
Sales expenses 222
Actual amount of insurance claim 6,622

Copy By Md. Kawsar Ahmed

Md. Kawsar Ahmed
ID: 132-11-3325

b. When policy is undervalued and market value of undamaged bags estimated TK.7 per bags.

Particulars Rate Taka Taka

Insured value of 10,000 bags 8 80,000
Insured value of damages 1,200 bags 8 9,600
Market value of damages 1,200 bags in undamaged condition 7 8,400
Sales value of damages 1,200 bags 3 3,600

Amount of actual loss 4,800

Adjustment insurance claim ( in case of valued policy):

Proportionate loss =
Insured value of damaged bags
× Actual Loss
Market value of damaged bags
5,486
9,600
= × 4,800
8,400

Add: Extra Expense Incurred:

72
Sales commission @2% at TK.3,600
50
Survey fee
100
Sales expenses 222
Actual amount of insurance claim 5,708

Copy By Md. Kawsar Ahmed

Md. Kawsar Ahmed
ID: 132-11-3325

c. Table for calculation of the amount of insurance claim when the policy is under unvalued and market value per
bags TK.9

Particulars Rate Taka Taka

Market value of damages 1,200 bags in undamaged condition 9 10,800

Sales value of damages 1,200 bags 3 3,600

Amount of actual loss 7,200

Add: Extra Expense Incurred:

Sales commission @2% at TK.3,600 72

Survey fee 50

Sales expenses 100

222
Actual amount of insurance claim 6,622

Copy By Md. Kawsar Ahmed