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    Question

    If the total premium is Rs. 50,000 and the Limit of

    Liability is Rs. 20,000,000; what is the rate on line?
    A 2.5% Correct Answer Incorrect Answer
    B 0.25% Correct Answer Incorrect Answer
    C 4% Correct Answer Incorrect Answer
    D 0.4% Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Calculation: Rate on line = (Total Premium / Limit of Liability) * 100 Rate on line = (Rs. 50,000 / Rs. 20,000,000) * 100 Rate on line = 0.0025 * 100 = 0.25%

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