Recovery Calculation with Combined Aggregate Limit

Recovery Calculation with Combined Aggregate Limit

Protection:

Section Cover *Excess Combined Aggregate Limit Aggregate Limit
Main section 400 000 100 000 1 000 000  
Marine 400 000 100 000   800 000
Aviation 300 000 200 000   600 000

Claim Basis: Losses Occurring

Claim Sequence: Date of Settlement

Inward Claim Booking details - in date of settlement sequence:

Claim Classification Paid Loss
Claim A Marine 500 000
Claim B Aviation 350 000
Claim C Marine 500 000
Claim D Aviation 300 000

Recovery Calculation:

Claim Section Retention Recovery Reinstatement Exhausted
Claim A Marine 100 000 400 000  
Claim B Aviation 200 000 150 000  
Claim C Marine 100 000 400 000  
Claim D Aviation 200 000 50 000 50 000

Explanation:

Although Claim D is within the Aggregate Limit of the Aviation Section, it exceeds the Combined Aggregate Limit. The remaining balance is booked towards Reinstatement exhausted.