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claims paid by insurers in the event of loss is irrecoverable when the?

claims paid by insurers in the event of loss is irrecoverable when the?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Average clause is applied
  • B Sum insured has been exhausted
  • C Sum insured has not been exhausted
  • D Payment is and ex gratia basis
Correct Answer: Option A
Explanation:
average clause. is an insurance policy that restricts the amount payable to a sum not to exceed the value of the property destroyed and that bears the same proportion to the loss as the face of the policy does to the value of the property insured

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