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A fire occurred on 1st February, 2006, in the premises of Pioneer Ltd., a retail store and business was partially disorganised upto 30th June, 2006. The company was insured under a loss of profits for Rs. 1,25,000 with a six months period indemnity. From the following information, compute the amount of claim under the loss of profit policy.
The company incurred additional expenses amounting to Rs. 6,700 which reduced the loss in turnover.There was also a saving during the indemnity period of Rs. 2,450 in the insured standing charges as a result of the fire.There had been a considerable increase in trade since the date of the last annual accounts and it has been agreed that an adjustment of 15% be made in respect of the upward trend in turnover?
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