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
\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
A
N15,000
B
N20,000
C
N12,000
D
N25, 000
Ask EduPadi AI for a detailed answer
Correct Option: C
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
\(\frac{\text{Amount insured x total actual loss}} {\text{Total actual value of property}}\)
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