Problem A cargo consisting of 10,000 bags were insured for Tk. 80,000.

But 1200 bags of cargo were damaged and would realize Tk. 3 per bag. Additional Expenses: Sales Commission= 2% Survey Fee= Tk. 50 Sales Expenses= Tk. 100 Requirements: A. Prepare a particular average statement (Market Value of Undamaged cargo is Tk. 9 per bag. The policy is valued.) B. Prepare a particular average statement (Market Value of Undamaged cargo is Tk. 7 per bag. The policy is valued.) C. Amount of claim (Market Value of Undamaged cargo is Tk. 9 per bag. The policy is UNVALUED) D. Amount of claim (Market Value of Undamaged cargo is Tk. 7 per bag. The policy is UNVALUED)

Solution A. Unit Insured Value of 10000 bags Insured Value of 1200 bags Market Value of Damaged 1200 bags in UNDAMAGED condition Selling Price of Damaged 1200 bags Amount of Loss: Proportionate Loss Add: Additional Expenses: Sales Commission Survey Fee Sales Expenses 10000 1200 1200 1200 Rate 8 8 9 3 Amount 80000 9600 10800 3600 7200 6400 72 50 100 222 6622

9600 by 10800 * 7200 0.02*3600

Solution B. Unit Insured Value of 10000 bags Insured Value of 1200 bags Market Value of Damaged 1200 bags in UNDAMAGED condition Selling Price of Damaged 1200 bags Amount of Loss: Proportionate Loss Add: Additional Expenses: Sales Commission Survey Fee Sales Expenses 10000 1200 1200 1200 9600 by 8400 * 4800 0.02*3600 72 50 100 222 5708 Solution C. Market Value of Damaged 1200 bags in UNDAMAGED condition Selling Price of Damaged 1200 bags Amount of Loss: Add: Additional Expenses: Sales Commission Survey Fee Sales Expenses 1200 1200 9 3 10800 3600 7200 0.02*3600 72 50 100 222 7422 Rate Amount 8 80000 8 9600 7 3 8400 3600 4800 5486

Solution C. Market Value of Damaged 1200 bags in UNDAMAGED condition Selling Price of Damaged 1200 bags Amount of Loss: Add: Additional Expenses: Sales Commission Survey Fee Sales Expenses 1200 1200 7 3 8400 3600 4800 0.02*3600 72 50 100 222 5022