National Life & General Insurance Company has been

National Life & General Insurance Company has been providing financial security and peace of mind to its satisfied customers with a comprehensive range of Life & General Insurance Products. With a Good (B++) financial strength rating from A.M Best Co., A.M Best’s Financial Strength Rating is an independent opinion of an insurer’s financial strength and ability to meet its ongoing insurance policy and contract obligations. The rating is based on a comprehensive quantitative and qualitative evaluation of a company’s balance sheet strength, operating performance, and business profile. Its ability to focus on local needs and deliver solutions appropriate to this need has today made NLGIC the Sultanate’s market leader in the Life Insurance Industry and is also setting its standards in General Insurance Industry. You are appointed as an accountant in National Life & General Insurance Company and required to prepare the final accounts for the company. The following ledger balances were extracted from the books of the National Life & General Insurance Company SAOG as of 31 December 2019.

You are provided with additional information about the company which has not been adjusted by the previous accountant. Claims have been recorded in ledger accounts but outstanding claims at the end of the period 31st December 2019 have not been included which amounts to OMR 40,000, and outstanding premium expenses were OMR 15,000. The company provided additional depreciation on machinery and vehicles amounting to OMR 7,500. Interest received in advance is OMR 15,000. Lastly, it was observed that miscellaneous expenses paid in advance were OMR 7,500. You are required to prepare:

– Prepare Balance Sheet as of 31st December 2019 after making all the year-end adjustments. 

– National Life & General Insurance Company wants to offer house insurance services in Quriyat where we have received 1800 policies for house insurance. It is expected that, on average, 10% of the houses may meet with an accident in a year. The economic value of the loss suffered by the owner of each house is taken to be RO. 50,000. Calculate the premium to be charged for insurance to the house owner.