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| Topic: |
Book Reports
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| Number of pages / Number of words: |
29 / 7974 |
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300/- each as premium to the pool of |Everybody contributes Rs. 1200/- each as premium to the pool of |
|funds |funds |
|[pic] |[pic] |
|Total value of the fund = Rs. 3,00,000 (i.e. 1000 houses * Rs. |Total value of the fund = Rs. 60,00,000 (i.e. 5000 persons * Rs. |
|300) |1,200) |
|[pic] |[pic] |
|5 houses get burnt during the year |50 persons die in a year on an average |
|[pic] |[pic] |
|Insurance company pays Rs...
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|300) |1,200) |
|[pic] |[pic] |
|5 houses get burnt during the year |50 persons die in a year on an average |
|[pic] |[pic] |
|Insurance company pays Rs. 40,000/- out of the pool to all 5 house|Insurance company pays Rs. 1,00,000/- out of the pool to the |
|owners whose house got burnt |family members of all 50 persons dying in a year |
|EFFECT OF INSURANCE |EFFECT OF INSURANCE |
|Risk of 5 house owners is spread over 1000 house owners in the |Risk of 50 persons is spread over 5000 people, thus reducing the |
|village, thus reducing the burden on any one of the owners...
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General points of the essay
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