Question on: JAMB Commerce - 2015
(\begin{array}{c|c}
\text{Name} & \text{Insure amount} & \text{Actual value} & \text{Actual loss} \
\hline
\text{Mr A} & 30,000 & 100,000 & 40,000 \
\hline
\text{Mr B} & 40,000 & 120,000 & 50,000 \
\hline
\text{Mr C} & 50,000 & 15,000 & 70,000 \
\end{array})
If Mr A takes a fire insurance policy with average clause, his compensation will be
Since the policy is with average clause the formula used in calculating his compensation is
(\frac{\text{Amount insured x total actual loss}} {\text{Total actual value of property}})
By this formula the compensation will be
Amount insured = N30,000
Amount loss = N40,000
Actual Value = N100,000
=(\frac{30,000 \times 40, 000}{100,000})
= (\frac{1200000000}{100,000}) = 12,000
Add your answer
Please share this, thanks!
No responses