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: Reinsurer Commission.
Answer & Explanation:
Reinsurance Commission = 30% × ₹ 1.20 = ₹ 36 Lakhs.
Topics: Reinsurance
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