Lesson 1.

A shipment of insured export glass at par value with a total insured amount (CIF
price) of USD 1,000,000 is carried on a ship (insured at par value with an insured amount of
USD 1,100,000). During the voyage, the ship encountered a storm and ran aground, the
damaged hull had to be repaired at the port to the end of $ 50,000, some glass was broken,
damage $ 63,000. To escape, the captain ordered that some of the shipper's cargo be thrown
into the sea worth $150,000, the relevant cost of which was $3,700. At the same time, the
ship operated at maximum capacity, exploded the boiler, and had to repair all 45,000 USD.
Request: - General loss allocation
- Determine the actual amount of compensation for each insurance
company?
Know that: - The shipowner buys insurance at BH A company;
- Shippers buy insurance at BH B company;
- Shipowners and shippers buy BH under all risks.
SOLUTION:
Step 1: Determine the TTC value (Gt)
Gt = 150,000 + 45,000 + 3,700 = 198,700 (USD)
Step 2: Determine the value subject to TTC allocation (Gc)
Gc = (1,100,000 + 1,000,000) – (50,000 + 63,000) = 1,987,000 (USD)
Step 3: Determine the TTC allocation rate (t)
198.700
t= x 100 = 10 (%)
1.987.000
Step 4: Determine each party's TTC contribution (Mi ):
Mtau = (1,100,000 – 50,000) x 10% = 105,000 (USD)
Items = (1,000,000 – 63,000) x 10% = 93,700 (USD)
Step 5: Determine the amount of money spent (or earned) of each party (Si )
Stau = (45,000 + 3,700) – 105,000 = - 56,300 (USD)
Row = 150,000 – 93,700 = + 56,300 (USD)
Step 6: Determine the amount of compensation for each party (according to BH
conditions)
 BH A shipowner compensation = 50,000 + 105,000 = 155,000 (USD)
BH B shipper compensation = 63,000 + 93,700 = 156,700 (USD)
* If the shipper buys BH at the rate of 80%:
BH B Shipper Compensation = 63,000 x 80% + 93,700 = 144,100 (USD)
* If the shipper buys BH under the exemption regime:
- Non-deductible exemptions:
a. $10,000 deductible exemption (1%):
BH B Shipper Compensation = 63.000 + 93,700 = 156,700 (USD)
b. $70,000 non-deductible exemption (7%):
BH B Shipper Compensation = 63.000 + 93,700 = 156,700 (USD)
- Exemptions with deductions:
a. Exemptions with a $10,000 deduction (1%):
BH B compensation of shippers = (63.000 – 10.000) + 93,700 = 146,700 (USD)
b. Exemptions with a $70,000 deduction (7%):
BH B Shipper Compensation = 93.700 USD
Lesson 2.
An insured export shipment at par value with a total sum insured (CIF price) of USD
260,000, where:
+ Shipper X: 100,000USD.
+ Shipper Y: 80,000USD.
+ Shipper Z: 80,000 USD.
The value of the ship before leaving port was $200,000. During the voyage, the ship
was rammed, the hull was damaged, so the sea water flooded in, causing shipper X to lose $
10,000; shipper Z lost $6,000. The captain ordered 2 packages worth $ 8,000 from shipper Y
to plug the hole. Arriving at port, the shipowner had to repair $20,000 and the captain
declared the general loss contribution.
Claim: Determine each insurer's overall loss contribution and the actual
compensation amount of each insurance company?
Know that:
- Shipper X buys insurance under condition C
- Shippers Y and Z purchase insurance under condition B
- Shipowners purchase all risk parity insurance (ITC)
SOLUTION:
Step 1: Determine the TTC value (Gt)
Gt = $8,000
Step 2: Determine the value subject to TTC allocation (Gc)
Gc = (200,000 + 260,000) – (10,000 + 6,000 + 20,000) = 424,000 (USD)
Step 3: Determine the TTC allocation rate (t)
8.000
t= x 100 = 1.8868 (%)
424.000
Step 4: Determine the TTC contribution of each party (Mi - index i are TTC
stakeholders):
Mship = (200,000 – 20,000) x 1.8868 % = 3,396.24 (USD)
MX = (100,000 – 10,000) x 1.8868 % = 1,698.12 (USD)
USA = 80,000 x 1.8868 % = 1,509.44 (USD)
MZ = (80,000 – 6,000) x 1.8868 % = 1,396.23 (USD)
Step 5: Determine the amount of money spent (or earned) of each party (Si - index i are
TTC related parties)
Ship = - $3,396.24
SX = - $1,698.12
SY = 8,000 - 1,509.44 = 6,490.56 (USD)
SZ = - $1,396.23
Step 6: Determine the amount of compensation for each party (according to BH
conditions)
Shipowner compensation = 20,000 + 3,396.24 = 23,396.24 (USD)
Shipper compensation insurance X = 1,698.12 USD (according to C, TTR IS NOT
COMPENSATED BY THE INSURANCE)
Shipper compensation BH Y = $1,509.44
Shipper compensation insurance Z = 6,000 + 1,396.23= 7,396.23(USD)
Lesson 3.
Two ships A and B were rammed, and the faults and damages of the parties were as
follows:
Errors and damages Train A Train B
1. Errors 20% 80%
2. Hull damage 3200 USD 2400USD
3. Business losses - 600 USD
4. Damage to goods 2000 USD $1,000

Claim: Determine the amount to be compensated by each insurance company and the
amount of damages owed by each shipowner, if the collision is settled under cross/single
liability?
Know that:
a. Shipowner A buys hull material insurance at par value under the condition of all
risks insurance and civil liability insurance at 3/4 at insurance company X. b.
Shipowner B buys hull material insurance at par value under the condition of all risks
insurance and civil liability insurance at 3/4 at insurance company Y.

Lesson 4.
Two ships A and B were rammed, and the faults and damages of the parties were as
follows:
Errors and damages Train A Train B
1. Errors 40 % 60%
2. Hull damage $32,000 $30,000
3. Business losses $8,000 $6,000
4. Damage to goods $20,000 $10,000

Claim: Determine the amount to be compensated by each insurance company and the
amount of damage owed by each shipowner, if the collision is resolved under cross-liability?
Know that:
 - Shipowner A purchases hull material insurance at the same value, under the
condition of all risks insurance and shipowner's civil liability insurance at 3/4 liability at
insurance company X
- Shipowner B buys hull material insurance at par with all risks and shipowner's civil
liability insurance at 3/4 liability in insurance company Y.
- Cargo on board ship A is insured at par, according to condition C at insurance
company N.
- Cargo on board ship B is insured at par value, under condition B at insurance
company M.

Lesson 5.
Automobile M has been insured for the entire body composition, engine composition
and motor vehicle owner's CIT insurance for the third person in insurance company A since
January 1, 2003. The insured amount of the body is equal to 50% and the sum insured for the
total engine composition is equal to 15% of the actual value of the car. On October 5, 2003,
the vehicle was involved in an accident covered by insurance. Total body wall damage total,
total damaged engine wall damage 15,000,000 VND.
Claim : Determine the actual amount of compensation of insurance company A?
Know that: When participating in insurance, the actual value of the car is 400,000,000 VND
and the car is new. The depreciation rate of the vehicle is 5% per annum.
Solution:
Full price of car M = 400.000.000 VND
Car M value just before the accident =
400.000.000 - 400.000.000 x 5% : 12 x 9 = 385.000.000 (đ)
BH A Company compensation:
- Hull damage: 385,000,000 x 50% = 192,500,000 (đ)
- Engine damage: VND 15,000,000 < 400,000,000 x 15% = VND 60,000,000 (đ)
Total compensation = 192,500,000 + 15,000,000 = 207,500,000 (đ)

Lesson 6.
Car owner M has been insuring the entire body composition and motor vehicle
owner's CIT insurance for third persons at Insurance Company X since January 17, 2009.
The amount of tire insurance is 51% of the actual value of the car. On 26/10/2009 car M
collided with car B, according to the inspection car M was 60% defective and completely
damaged, the value was VND 12,000,000; The injured driver M was hospitalized for
treatment, treatment costs and income damage were VND 22,000,000. Car B has a fault of
40%, damage must be repaired at VND 50,000,000, business damage is VND 10,000,000.
Car owner B buys full body material insurance and motor vehicle owner's CIT insurance for
third persons at insurance company Y.
Request:
Let's determine the actual amount of compensation for each insurance company and
the amount of damage owed by each car owner?
Know that:
Car M has been used for 4 years, when participating in insurance, the actual total
value of the car is 640,000,000 VND. The depreciation rate of the vehicle per year is 5%.
Insurance companies limit their liability to 50,000,000 VND/accident asset and 50,000,000
VND/person/accident.
Solution:
Car cost M = 640 : (100 – 4 x 5) x 100 = 800 (tr.đ)
Damage of car M:
Assets: 640 – 800 x 5% :12 x 9 – 12 = 598 (tr.d)
People: 22 million đ
Total loss: 598 + 22 = 620 (tr.d)
Damage of car B: 50 + 10 = 60 (tr.d)
TNDS amount of car M (for assets): 60 x 60% = 36 (tr.d)
TNDS amount of car B: - For assets: 598 x 40% = 239.2 (tr.d)
- For humans: 22 x 40% = 8.8 (tr.e)
Total: 239.2 + 8.8 = 248 (tr.d)
Amount of compensation from BH X Company:
- About TNDS: 36 million đ
- Material: 598 x 51% - 239.2 x 51% = 182,988 (tr.e)
Total compensation = 36 + 182,988 = 218,988
Amount of compensation from BH Y Company:
- About TNDS: + For assets: VND 50 million
+ For humans: 8.8 million VND
- Material: 50 - 50 x 60% = 20 (tr.d)
Total compensation = 50 + 8.8 + 20 = 78.8 (tr.d)
Damage of car owner M: (620 + 36) – (218,988 + 248) = 199,012 (tr.d)
Damage of car owner B: (60 + 248) – (36 + 78.8) = 193.2 (tr.d)

Lesson 7.
Death insurance policy:
- Duration: 5 years
- Insured amount: 50.000.000 VND
- Insured age when insured: 40
- Technical interest rate: 6%/year.
According to the mortality table:
l40 = 97931 l43 = 97673
l41 = 97847 l44 = 97578
l42 = 97762 l45 = 97477
Request: Let's determine the net annual fee?
b1. To charge a lump sum net premium in a definite term death insurance:
n
∑ d( x+ j−1) (1+i1 )j
j=1
fa = Sb
lx
(1)
Where:
Sb - is STBH;
LX - the number of people living at age X participating in insurance;
i - technical interest rate;
n- is the term of insurance;
D(X+J-1) - is the number of deaths between the ages of (X+J-1) and (X+J);
b2. Calculation of annual net payment in definite term death insurance:
n
1
∑ d( x + j−1) ( 1+ i ) j
j=1
fb = n−1
Sb
l x+ j
∑ ( 1+i ) j
j =0
(2)
b6- Charge a lump sum net premium in mixed life insurance.
fg = fa + fA (9) = (1) + (8)
1
lx + n
(1+i )n
f A = Sb
lx
(8)
Where: fA - is a pure term insurance premium
Sb- is STBH;
i - Technical interest rate
n - Term of coverage
lx - The number that lives at the age of x;
ln - Number of lives at the age of n;
b7- Calculation of periodic net premiums in mixed life insurance
fh = fb + fB(11) = (2) + (10)

1
l x +n
( 1+i )n
fB = n−1
Sb
1
∑ lx+ j (1+i ) j
j =0

l x+n (1+ i)−n

fB = n−1
Sb
∑ lx+ j (1+i)− j
j=0 (10)

Solution:
The method of calculating the annual net premium in definite term death insurance:
 n
1
∑ d( x + j−1) ( 1+ i ) j
j=1
fb = n−1
Sb
l x+ j
∑ ( 1+i ) j
j =0

dx = lx - lx+1
D40 = L40 – L41 = 97931 – 97847 = 84 (people)
D41 = L41 – L42 = 97847 - 97762 = 85 (people)
D42 = L42 – L43 = 97762 - 97673 = 89 (people)
d43 = L43 – L44 = 97673 – 97578 = 95 (people)
d44 = l44 – l45 = 97578 – 97477 = 101 (person)
84 x (1/1.06) + 85 x (1/1.06)2 + 89 x (1/1.06)3 + 95 x (1/1.06)4 + 101 x (1/1.06)5
f40
97931 + 97847 x (1/1.06) + 97762 x (1/1.06)2 + 97673 x (1/1.06)3 + 97578 x x 50,000,000
=
(1/1.06)4
= 43,563 đ/person)

Lesson 8.
Mr. A's family consists of 3 people, on January 1, 2010 he decided to buy life
insurance for family members at B life insurance company.
a/ Mr. A is in his 40s, participating in death insurance with a definite term of 5 years,
annual payment fee, the sum insured per person is VND 50,000,000.
b/ Mr. A's child is at the age of 18, has mixed life insurance with a term of 5 years, a
lump sum fee, the sum insured is VND 40,000,000.
Claim: Determine the total amount of insurance premiums payable by Mr. A's family
at the time of signing the policy (1/1/2010)?
Know that:
a/ The technical interest rate is 4%/year; The operating fee (H) is 10%.
b/ The mortality rate used to calculate premiums for ages and years is shown in the
following table:
Age(x) Mortality rate Age (x) Mortality rate qx
qx (%0) (%0)
 18 0,6 40 3,2
19 1,2 41 3,6
20 1,6 42 4,2
21 1,8 43 4,4
22 2,0 44 4,6
23 2,4 45 4,8

Solution:
a/ The method of calculating the annual net premium in definite term death insurance:
n
1
∑ d( x + j−1) ( 1+ i ) j
j=1
fb = n−1
Sb
l x+ j
∑ ( 1+i ) j
j =0

- Mortality in age x:
qx =  dx = qx x lx
- Number of deaths between age x and x+1
dx = lx - lx + 1  lx+1 = lx - dx

x qx (%0) Lx Dx
40 3,2 1000 3,200
41 3,6 996,8 3,588
42 4,2 993,212 4,171
43 4,4 989,041 4,352
44 4,6 984,689 4,530
45 4,8 980,159

3.2 x (1/1.04) + 3.588 x (1/1.04)2 + 4.171 x (1/1.04)3 + 4.352 x (1/1.04)4 + 4.53 x

f40 (1/1.04)5
x 50,000,000
= 1000 + 996.8 x (1/1.04) + 993.212 x (1/1.04)2 + 989.041 x (1/1.04)3 + 984.689 x
(1/1.04)4
= 190,809 (đ/person)
P40 = f40 + h = f40 + 10% P40  P40 = f40 / 0.9 = 190.809 / 0.9 = 212.010 (đ/person)

b/ Net lump sum payment in mixed life insurance.

fg = fa + fA (9) = (1) + (8)
1
lx + n
(1+i )n
f A = Sb
lx
(8)
n
∑ d( x+ j−1) (1+i1 )j
j=1
fa = Sb
lx

x qx (%0) Lx Dx
18 0,6 1000 0,600
19 1,2 999,4 1,199
20 1,6 998,201 1,597
21 1,8 996,604 1,794
22 2,0 994,81 1,990
23 2,4 992,82

f18 = [0.6 x (1/1.04) + 1.199 x (1/1.04)2 + 1.597 x (1/1.04)3 + 1.794 x (1/1.04)4 + 1.99 x
(1/1.04)5 + 992.82x (1/1.04)5] : 1000 x 40.000.000 = 32.892.000 (đ/person)
P18 = f18 + h = f18 + 10% P18
 P18 = f18 / 0.9 = 32.892.000 / 0.9 = 36.546.667 (đ/person)
Total insurance premiums payable by Mr. A's family at the time of signing the policy
=
212.010 + 36.546.667 = 36.758.677 (đ)  36.759.000 VND

Lesson 9. The rice production situation of 1 state-owned farm within 5 years is as follows:
 Quota Unit of 2002 2003 2004 2005 2006
Calcula
tion
1. Rice yield - Qi Ton 5.500 4.000 5.750 5.250 4.500
2. Rice DTGT - Si ha 1.000 1.000 1.000 1.000 1.000
3. Rice yield - Wi Tons/ha 5,50 4,00 5,75 5,25 4,50

Requirement: Let's determine the premium for 1 hectare of rice?

Know that: The average 5-year rice price mentioned above is 1,500 VND/kg; d =
20%. Hypothesis: In 2007, the farm participated in insurance equal to the average actual
harvest value of the above 5 years.
1. If the indemnity insurance policy is applied at the rate of k (e.g. k = 70%):
Step 1. The average actual harvest per 1 ha of rice:
 Qi 5.500 + 4.000 + 5.750 + 5.250 + 4.500
W= = = 5 (T/ha)
 Si 1.000 + 1.000 +1.000 + 1.000 + 1.000
Step 2: Determine the average loss output per 1 insurance unit.
In these five years, only 2003 and 2006 were losses, because the yield level was
smaller than average (W = 5 tons / ha). Therefore:
 (W – Wt) x St (5 - 4) x 1,000 + (5 - 4,5) x 1,000
Qt = xk= x 70% = 0.21 (T/ha)
 Si 1.000 + 1.000 +1.000 + 1.000 + 1.000
Step 3: Determine the average compensation fee ratio (net fee ratio) (T)

Qt 0,21
T= x 100 = x 100 = 4.2 (%)
W 5

Step 4: Determine the net fee (f)

f = T x Sb
f = T x W x P = Qt x P
f = 0.21 x 1.500.000 = 315.000 đ/ha
Inferred: d = 315,000 x 20/80 = 78,750 đ/ha.
So: F = 315,000 + 78,750 = 393,750 VND/ha (if hedging all risks)

2. If deductible exemption insurance (M = 10%) is applied:

Step 1. The average actual harvest per 1 ha of rice:
  Qi 5.500 + 4.000 + 5.750 + 5.250 + 4.500
W= = = 5 (T/ha)
 Si 1.000 + 1.000 +1.000 + 1.000 + 1.000
Step 2: Determine the average loss output per 1 insurance unit.
M = 10% , only 2003 was a loss thus:
 (W – Wt – M x W) x St (5 - 4 – 10% x 5) x 1,000
Qt = = = 0.1 (T/ha)
 Si 1.000 + 1.000 +1.000 + 1.000 + 1.000
Step 3: Determine the average compensation fee ratio (net fee ratio) (T)

Qt 0,1
T= x 100 = x 100 = 2 (%)
W 5

Step 4: Determine the net fee (f)

f = T x Sb
f = T x W x P = Qt x P
f = 0.1 x 1.500.000 = 150.000 VND/ha
Inferred: d = 150,000 x 20/80 = 37,500 đ/ha.
So: F = 150,000 + 37,500 = 187,500 đ/ha (if hedging all risks)

3. If applying non-deductible exemption insurance (M = 10%).

Step 1. The average actual harvest per 1 ha of rice:
 Qi 5.500 + 4.000 + 5.750 + 5.250 + 4.500
W= = = 5 (T/ha)
 Si 1.000 + 1.000 +1.000 + 1.000 + 1.000
Step 2: Determine the average loss output per 1 insurance unit.
 (W – Wt) x St (5 - 4) x 1,000
Qt = = = 0.2 (T/ha)
 Si 1.000 + 1.000 +1.000 + 1.000 + 1.000
Step 3: Determine the average compensation fee ratio (net fee ratio) (T)

Qt 0,2
T= x 100 = x 100 = 4 (%)
W 5

Step 4: Determine the net fee (f)

f = T x Sb
f = T x W x P = Qt x P
 f = 0.2 x 1.500.000 = 300.000 VND/ha
Inferred: d = 300,000 x 20/80 = 75,000 đ/ha
So: F = 300,000 + 75,000 = 375,000 đ/ha (if hedging all risks)

Lesson 10. The situation of rice production in District A within 5 years is as follows:
Quota Unit 2007 2008 2009 2010 2011
1.Rice output Ton 12.000 9.800 10.800 14.700 8.100
2. Rice yield T/ ha 7,40 5,90 6,90 8,30 5,50
3. Price of rice e/kg 1.700 1.900 2000 2.100 2.300
Request:
1. Determine the insurance premium payable per hectare of rice in 2012 under the
10% deductible exemption insurance scheme?
2. Assuming that in 2012 this district insured 1600 hectares of rice at the above
calculated fee and the average insurance value per hectare is equal to the average actual
harvest value 5 years ago, determine the loss (profit) of the insurance company?
Know that:
1. The surcharge is 12%.
2. In 2004, 60 hectares of rice suffered total losses under coverage, the value of each
hectare was 500,000 VND and 20 hectares of rice lost 20% of production. Allocated
administrative costs are 10% and VAT 10% of the total fee collected. The profit brought by
the investment is 25,000,000 VND.

Card...
Simple example of general loss allocation:
A ship carrying 9,000 tons of cement and 3,000 tons of construction iron that was en
route ran aground, its hull was punctured, and water flowed into cargo hold No1, damaging
260 tons of cement. When the storm cleared, the shipowner hired a barge to unload 700 tons
of cement for the ship to go aground. The captain used the female machine to run backwards
at full power to get out but could not get out, the machine was badly damaged. The owner
hired two tugboats to tow the vessel out of the ground and after loading the cement on the
barge back to the vessel towed the vessel and the cargo to the nearby destination port. In the
process of unloading 700 tons of cement through the barge and then reloading the vessel, 50
tons of it were damaged or lost to the sea. The cost of unloading and loading 700 tons of
cement (including barge rent) cost $19,800. The cost of chartering two tugboats cost
$24,000. The following figures were determined at the port of destination: the value of the
vessel before repairing the damage was: $5,298,500; the price per ton of cement is 80 USD,
the price per ton of construction iron is 450 USD, the repair fee for the punctured hull is
12,000 USD, the repair of the machine is 14,000 USD; freight per ton of cement is 25 USD
per ton of construction iron is 22 USD; The cost that the carrier has to spend to bring 1 ton
of cargo from the ship in distress to the destination port until the time of unloading is 1
USD / 1ton. Let's calculate the distribution of the aforementioned losses.
Solution:
Step 1: Calculate the total value of general lossesFirst of all, we analyze the accident losses:
The repair of the damaged hull due to the grounding of 12,000 USD is a separate loss. The
value of 260 tons of cement damaged by seawater entering the cargo hold through the hull
hole was a separate loss. The lost freight of the aforementioned 260 tons of broken cement
occurred due to force majeure (typhoon), so it is caused to either party that must bear it
itself. The cost of repairing a ship's engine damaged by overwork when it came aground
with $14,000 was a sacrifice for general losses. The value of 50 tons of cement damaged and
falling into the sea during loading and unloading to a barge 700 tons of cement to lighten the
ship is a sacrifice of common loss: 80 USD/ton x50 tons = 4,000 USDa freight loss of the
shipowner due to 50 tons of damaged cargo and falling into the sea is a common loss:
($25/ton -$1/ton) x 50 tons = $1,200The tugboat charter fee including 2% commission is
calculated as general loss expense:$24,000 + $24,000 x 0.02 = $24,480The fee for unloading
700 tons of cement via the barge and subsequent reloading, including 2% commission is
calculated as overhead loss expense:$19,800 + $19,800 x 0.02 = $20,196Total price The
overall loss is: $14,000 + $4,000 + $1200 + $24,480 + $20,196 = $63,876. Step 2: Calculate
the value of assets subject to general loss contribution allocation. The value of assets subject
to the shipowner's overall loss contribution includes: Value of the ship: USD 5,298,500 +
USD 14,000 = USD 5,312,500. Value of cement shipment freight:25 USD/ton x (9,000 - 260
- 50) tons + 1,200 USD = 218,450 USDconstruction iron shipment freight value: 22
USD/ton x 3,000 tons = 66,000 USDnet: 5,596,950 USD
The value of assets subject to the distribution of the general loss contribution of the cement
shipper.80 USD/ton x (9,000 - 260 - 50) tons + 4,000 USD = 699,200 USDvalue of assets
subject to contribution allocation General loss of construction iron shippers:450 USD/ton x
3,000 tons = 1,350,000 USDthe total value of assets subject to the general loss contribution
allocation is:5,596,950 USD + 699,200 USD + 1,350,000 USD = 7,646,150 USDestimation
3: Calculate the general loss contribution ratio

Step 4: Calculate each party's contribution to the general loss. Shipowners must
contribute:596,950 USD x 0.008354 = 46,757 USDcement shippers must contribute:699,200
USD x 0.008354 = 5,841 USDconstruction iron shippers must contribute:1,350,000 USD x
0.008354 = 11,278 USDapproximation 5: Calculation of financial settlement results The
shipowner has sacrificed property and costs in general losses are:14,000 USD + 1,200 USD
+ 24,480 USD + 20,196 USD = 59,876 USDThe shipowner paid:$59,876 - $46,757 =
$13,119Cement shippers have sacrificed their assets in the general loss of $4,000, so what
else to contribute: $5,841 - $4,000 = $1,841Construction iron shippers have not sacrificed
any costs in general losses, thus must contribute to the general loss payment of $11,278.