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How less expenses is less premium for insurance?? Pls explain
Answers (7)
CA Suraj Lakhotia Admin
can you elaborate your query?
Sir in video ,sir told that companies prefer to show less expenses to insurance company so that premium will be less .my question is how is it related ??
Thread Starter
Reetikaa RSir in video ,sir told that companies prefer to show less expenses to insurance company so that premium will be less .my question is how is it related ??
If you declare less value of assets, the insurance premiums will be less.
CA Suraj Lakhotia Admin
If you declare less value of assets, the insurance premiums will be less.
Sir I m asking how expenses is related to premium??
Thread Starter
Reetikaa RSir I m asking how expenses is related to premium??
INsurance premium is an expense
CA Suraj Lakhotia Admin
INsurance premium is an expense
Sir my doubt is when insuring standing charges ,companies prefer to show less expenses so that they can pay less premium . How this insured standing charges is related to premium ??
Thread Starter
Reetikaa RSir my doubt is when insuring standing charges ,companies prefer to show less expenses so that they can pay less premium . How this insured standing charges is related to premium ??
Since insurance for loss of profit also covers standing charges, lower expenses declared means lower permium
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