Trust Well Insurance Company, Mumbai entered a reinsurance contract with Maxwell Insurance, Dubai with the following details: Quota of Insurance Business Share: 60%, Ceding Commission = 30% of Ceded Premium, Gross Premiu

CS Professional · Banking and Insurance - Laws and Practice · PYQS · December 2025
Trust Well Insurance Company, Mumbai entered a reinsurance contract with Maxwell Insurance, Dubai with the following details: Quota of Insurance Business Share: 60%, Ceding Commission = 30% of Ceded Premium, Gross Premium = ₹ 2 crores and Gross Claims = ₹ 1.20 Crores. Calculate: Ceded Premium and Claims.

Answer & Explanation:

Ceded Premium = 60% × ₹ 2 Crores = ₹ 1.20 Crores. Ceded Claims = 60% × ₹ 1.2 Crores = ₹ 72 Lakhs.

Topics: Reinsurance

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