Himayati Life Insurance is underwritten by AXA Insurance Gulf BS.C, which is one of the largest insurance companies in the world. Himayati Life Insurance is offered to all customers The scheme offers two plans - Basic and Premium; both insurance plans offer comprehensive protection, 24 hours a day, 365 days a year, the world over. You are appointed as an accountant in AXA Insurance Company and required to prepare the final accounts for the company. The following balances were extracted from the books of the AXA Life Insurance as of 31 March 2019. Amount OMR Particulars Loans to other insurance companies Bad debts Share Capital Life assurance fund Investments Bonus to policy holders Surrender Value Agents balances Consideration for annuities Depreciation Dividends Amount OMR Particulars Commission on reinsurance 7,500 ceded 15.000 Statutory Reserve 150,000 Furniture and fixtures 186,000 Maintenance 84,000 Cash Deposit 15,000 Premises 24,000 Salaries to employees 30,000 General expenses 75,000 Premiums less re-insurance 21,000 Claims less re-insurance 28.500 Repairs 100,000 59.000 75.000 6.000 96,000 67,500 91.500 21,000 180,000 150,000 18,000 The following information is also available about the Outstanding daims at the end of the period ending 31" March 2019 is OMR 16,000; Commission received in advance OMR 6,000. Likewise general expenses paid in advance were OMR 3,000. Also the outstanding premium yet to be collected is OMR 6,000 and an additional depreciation on furniture and fixtures is to be provided for OMR 3,000 71 Page You are required to prepare: a) Revenue account for AXA Life Assurance company and determine the closing Life Assurance balance at the end of the year (5 Marks) b) Prepare Balance Sheet as on 31 March 2019 (3 Marks) c) AXA Life Insurance company wants to offer vehicle insurance services in Sinaw, where they have 2500 vehicles. It is expected that, on average, 5% of the vehicles or 125 vehicles, may meet with an accident in a year. The economic value of the loss suffered by the owner of each vehicle is taken to be RO. 18,000. Calculate the premium to be charged for insurance to the vehicle owner. (2 Marks) Himayati Life Insurance is underwritten by AXA Insurance Gulf BS.C, which is one of the largest insurance companies in the world. Himayati Life Insurance is offered to all customers The scheme offers two plans - Basic and Premium; both insurance plans offer comprehensive protection, 24 hours a day, 365 days a year, the world over. You are appointed as an accountant in AXA Insurance Company and required to prepare the final accounts for the company. The following balances were extracted from the books of the AXA Life Insurance as of 31 March 2019. Amount OMR Particulars Loans to other insurance companies Bad debts Share Capital Life assurance fund Investments Bonus to policy holders Surrender Value Agents balances Consideration for annuities Depreciation Dividends Amount OMR Particulars Commission on reinsurance 7,500 ceded 15.000 Statutory Reserve 150,000 Furniture and fixtures 186,000 Maintenance 84,000 Cash Deposit 15,000 Premises 24,000 Salaries to employees 30,000 General expenses 75,000 Premiums less re-insurance 21,000 Claims less re-insurance 28.500 Repairs 100,000 59.000 75.000 6.000 96,000 67,500 91.500 21,000 180,000 150,000 18,000 The following information is also available about the Outstanding daims at the end of the period ending 31" March 2019 is OMR 16,000; Commission received in advance OMR 6,000. Likewise general expenses paid in advance were OMR 3,000. Also the outstanding premium yet to be collected is OMR 6,000 and an additional depreciation on furniture and fixtures is to be provided for OMR 3,000 71 Page You are required to prepare: a) Revenue account for AXA Life Assurance company and determine the closing Life Assurance balance at the end of the year (5 Marks) b) Prepare Balance Sheet as on 31 March 2019 (3 Marks) c) AXA Life Insurance company wants to offer vehicle insurance services in Sinaw, where they have 2500 vehicles. It is expected that, on average, 5% of the vehicles or 125 vehicles, may meet with an accident in a year. The economic value of the loss suffered by the owner of each vehicle is taken to be RO. 18,000. Calculate the premium to be charged for insurance to the vehicle owner. (2 Marks)
