Formulas

Question 1

Reduce proportionately ( reduce the claim )

Answer 1

Premium actually charged ÷ higher premium x 100

= percentage (% from above received ) x claim amt

Question 2

Pro rata condition of average

Answer 2

Sum insured ÷ value of goods at risk x loss

Question 3

Rateable proportion

Answer 3

Policy sum insured ÷ total si ( all policies) × loss

Question 4

By independent liability method

Answer 4

Policy sum insured ÷ total value at risk × loss