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Friday, 17 April 2026
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Eke bought a new car for N1.5M. The practice in the insurance idustry is to pay 10% of ...

Eke bought a new car for N1.5M. The practice in the insurance idustry is to pay 10% of the value of the vehicle as premium for comprehensive cover and 2.5% additional cover for strike, riot and civil commotion. Eke was issued a document and two weeks later, he was issued another document different from the first document issued


What is the premium payable for the comprehensive cover
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  • A N37,000
  • B N150,000
  • C N155,000
  • D N187,500
Correct Answer: Option D
Explanation:
comprehensive cover = 10% + 2.5% of N1.5M
150,000 + 37,500 = 187500

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