An insurance policy is subject to a franchise of N115,000, how much would an insured who suffered of N120,000 recieve as compwnsation
Question 1 Report
An insurance policy is subject to a franchise of N115,000, how much would an insured who suffered of N120,000 recieve as compwnsation
Answer Details
If an insurance policy is subject to a franchise of N115,000, and an insured person suffered a loss of N120,000, they would receive N5,000 as compensation.
A franchise is a deductible amount, which means that the insured person is responsible for paying the first portion of the loss up to the franchise amount. In this case, the franchise amount is N115,000, so the insured person would be responsible for paying the first N115,000 of the loss. The insurance company would then cover the remaining amount, which in this case would be N5,000.
So, the insured person would receive a total compensation of N5,000 from the insurance company.
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