Important Memos under Business Interruption Policy

[@cyrilgeorge5644]

Sir, thank you for the videos.....can you make a presentation on why difference method of GP calculation is better than addition method of GP calculation?

[@VPinsupedia]

Difference method for calculation of Gross profit is considered better because limited number of variable expenses are deducted from total sales turnover of the company where as in case of addition method large number of standing charges are added to net profit in order to workout the Gross profit. In this case there is a big possibility that some of the standing charges are missed out which may result into under declaration of gross profit and may attract application of under insurance at the time of claim

[@prabhakarsinghchib4884]

Thanks Sir

[@bholanathsingh2471]

🙏🏻

[@VPinsupedia]

I can do that but not many students are interested in learning that policy