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

Assessment: JAMB UTME - Commerce - 2015 Subject: Commerce

Question 1 Report

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

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

N15,000

N20,000

N12,000

N25, 000

Answer Details

Since the policy is with average clause the formula used in calculating his compensation is

$\frac{Amount insured x total actual loss}{Total actual value of property}$

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

View Answer

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

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