NameInsure amountActual valueActual lossMr A30,000100,00040,000Mr B40,000120,00050,000Mr C50,00015,00070,000 Name Insure amount Actual value Actual loss Mr ...

Answer Details

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