Use the following information of Ligo Fleet Company to answer the question below:

1. Number of vehicles 300
2. Depreciation 10% on a straight line basis
3. Deductible (excess) per claim R20 000

Claims information:

1. Ligo Fleet Company submitted three vehicle claims amounting to R800 000 on 5 January 2022. The three vehicles were stolen in the three provinces of the country.

2. Ligo Fleet submitted five vehicle claims amounting to R1 200 000 on 3 March 2023. The five vehicles were stolen in the five provinces of the country.

Policy changes

The parties agreed to change the current deductible method to a disappearing deductible method in the 2 January 2023 renewal negotiations.

Management should apply the recapture value of 25% of the depreciation rate.

Question

Using a deductible of R20 000, calculate the claims amount which will result in a zero deductible after the 3 March 2023.

a. R825 000

b. R810 000

c. R815 000

d. R820 000