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