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

1. Depreciation on Fixed Assets to be provided @ 10 % p.a.
2. Interest accrued on investments R O 13,500
3. Claims outstanding on 31.12.2019
   1. Fire Insurance RO 43,200
   2. Marine Insurance RO 64,800
4. Premium outstanding on 31.12.2019
   1. Fire Insurance RO 129,600
   2. Marine Insurance RO 86,400
5. Reserve for unexpired risk maintained at 50 % and 100 % in respect of Fire and Marine Insurance respectively