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

$\begin{array}{cccc}\text{Name}& \text{Insure amount}& \text{Actual value}& \text{Actual loss}\\ \text{Mr A}& 30,000& 100,000& 40,000\\ \text{Mr B}& 40,000& 120,000& 50,000\\ \text{Mr C}& 50,000& 15,000& 70,000\end{array}$

If Mr A takes a fire insurance policy with average clause, his compensation will be

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