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TASK 2 :
Calculate Premium and Claim value form the given data for the Starbuds Insurance Company for the year 2019.
A. Premium Earned
B. Claims Incurred
Starbuds General Insurance SAOG submits the following information for the year ended 31 December 2019.
| | Amount (RO) | | Amount (RO) |
| Directors Fees | 90,000 | Interest received | 21,000 |
| Dividend received | 122,000 | Fixed Assets ( 1.1.2019) | 96,000 |
| Provision for Taxation ( as on 1.1.2018 | 56,000 | Income-tax paid during the year | 58,000 |
| | Amount (RO) |
| | Fire | Marine |
| Outstanding Claims on 1.1. 2019 | 60,960 | 30,240 |
| Claims paid | 432,000 | 345,600 |
| Reserve for Unexpired Risk on 1. 1. 2019 | 864,000 | 604,800 |
| Premiums Received | 1,944,000 | 1,425,600 |
| Agents Commission | 172,800 | 86,400 |
| Expenses of Management | 259,200 | 194,400 |
| Re-insurance Premium ( Paid ) | 108,000 | 64,800 |
The following additional information is available
- Depreciation on Fixed Assets to be provided @ 10 % p.a.
- Interest accrued on investments R O 13,500
- Claims outstanding on 31.12.2019
- Fire Insurance RO 43,200
- Marine Insurance RO 64,800
- Premium outstanding on 31.12.2019
- Fire Insurance RO 129,600
- Marine Insurance RO 86,400
- Reserve for unexpired risk maintained at 50 % and 100 % in respect of Fire and Marine Insurance respectively
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