If the claim under the policy is Rs. 4,000 and ratio of property value to policy value is 5:4 then loss occurred is

Options

A. Rs.4,400
B. Rs.4,000
C. RS.5,000
D. Rs. 5,500

Answer

To solve the problem, we need to find the loss incurred based on the claim amount and the ratio of property value to policy value.

### Step-by-Step Solution:

1. **Identify the Given Information:**
- Claim under the policy = Rs. 4000
- Ratio of property value to policy value = 5:4

2. **Understand the Ratio:**
- The ratio of property value to policy value (PV:PV) can be expressed as:
\[ \frac{\text{Property Value}}{\text{Policy Value}} = \frac{5}{4} \]

3. **Relate the Loss to the Claim:**
- The loss can be calculated using the formula:
\[ \text{Loss} = \text{Claim} \times \frac{\text{Property Value}}{\text{Policy Value}} \]
- Substituting the values we have:
\[ \text{Loss} = 4000 \times \frac{5}{4} \]

4. **Calculate the Loss:**
- Now, perform the multiplication:
\[ \text{Loss} = 4000 \times \frac{5}{4} = 4000 \times 1.25 = 5000 \]

5. **Final Result:**
- Therefore, the loss incurred is Rs. 5000.