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    Question

    An insurance company collects premium of ₹12,00,000

    for annual policies starting 1 October 2024. The accounts close on 31 March 2025. According to IRDAI guidelines, the Unearned Premium Reserve must be calculated on a time-proportion basis. What is the UPR at year-end?
    A ₹7,00,000 Correct Answer Incorrect Answer
    B ₹4,00,000 Correct Answer Incorrect Answer
    C ₹6,00,000 Correct Answer Incorrect Answer
    D ₹8,00,000 Correct Answer Incorrect Answer
    E ₹3,00,000 Correct Answer Incorrect Answer

    Solution

    • Period unearned = 6 months (Apr–Sep 2025) out of 12 months = 50%. • UPR = 50% × ₹12,00,000 = ₹6,00,000.

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