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Is insurance money received from Oriental Insurance due to destruction of factory due to fire included/excluded in national income?

1.65K viewsDecember 9, 2023National Income and related aggregates

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Anurag Pathak30.76K December 9, 2023 0 Comments

Is insurance money received from Oriental Insurance due to destruction of factory due to fire included/excluded in national income?

Anurag Pathak Changed status to publish December 9, 2023

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Anurag Pathak30.76K Posted December 9, 2023 0 Comments

No,

Insurance money received from oriental insurance due to destruction of factory due to fire will not be included in the national income because it is a transfer receipt.

Explanation:-

An insurance claim is merely a transfer receipt against the damage.

It does not add to any current flow of goods and services.

Anurag Pathak Changed status to publish December 9, 2023

Anurag Pathak

Anurag Pathak is an academic teacher. He has been teaching Accountancy and Economics for CBSE students for the last 18 years. In his guidance, thousands of students have secured good marks in their board exams and legacy is still going on. You can subscribe his youtube channel and can download the Android & ios app for free lectures.