CommerceInsuranceJAMB
Mr Ade insured his shop for ₦600,000 with Company X and for ₦400,000 with Company Y. A fire causes a loss of ₦500,000. Under the principle of contribution, Company Y pays
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Answer: A. ₦200,000
Total cover is ₦1,000,000; Y's share is 400,000/1,000,000 = 2/5 of the ₦500,000 loss, which is ₦200,000.
An AdmitMe practice question, written for the JAMB syllabus. Not an official past question.