Comment
The performance of the candidates in this question was commendable especially in identifying and explaining the principles involved
(c) Calculation of the actual claim due to the insured in the case.
The two insurance companies must contribute ratably to pay for the loss of NN4,000,000 due to Ekwema Industries Limited.
Sum Insured
ABC Insurance Company P1c NI5,000,000
BYC Insurance Company LtdNI0,000,000
Total sum insured with two companies N25,000,000
Loss = N4,000,000
ABC's share of the loss = 15,000,000 x 4,000,000 = N2,400,000
25,000,000 1
BYC's share of the loss = 10,000,000 x 4,000,000 = Nl,600,000
25,000,000 1
Ekwema Industries Limited will be entitled to N2,400,000 and NI,600,000 respectively from
ABC Insurance Company PIc and BYC Insurance Company Limited.
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