B-1 Please compute the premium for the following risk. 10 marks The client wants an SFSP policy including STFI with a cover for EQ. No claims in the last 3 years, excellent housekeeping and maintenance. Risk inspection and follow up done every year. Sprinklers spread across the factory, and sand buckets are there. The property is in Jharia, Dhanbad, Jharkhand. The EQ zone is III. Due to non-availability of hand held FEA, the client is not entitled to a discount of 5%, though a Tariff discount of 25% could be allowed if the Underwriter is convinced about the risk being "good risk". Earthquake rates to be charqed For Earthquake, the rates have been adopted zone wise and Industrial and non-industrial wise which is as under. The Zones are classified as per the current zones in the erstwhile taritf. The AIFT premium rate for the SFSP risk is 1.35%0. 1) Calculate the premium. 7 marks 2) Can we design any other incentive for the client, please elaborate? 3 marks B-2 The above client also wants an FLOP cover for 15,00,000 with an indemnity period of 6 months. The discounting structure remains same. a) What is the basis rate and the premium? 7 marks b) During the indemnity period, there was a loss of revenues on account of the heating of the ground due to underground coal burning. How much claim is payable? 3 marks