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JAMB Commerce 2011 Question 23

Question 23

Insurance

Mr. Lawal insured his warehouse against burglary but it was later gutted by fire. This implies that

  1. A.the loss should be borne by the insurer
  2. B.Mr. Lawal is liable only for half of the estimated loss
  3. C.the insurer should make a consolation payment for the loss
  4. D.the loss should be borne by Mr. Lawal.
Show the answer and explanation

Answer: D (the loss should be borne by Mr. Lawal.)

Explanation

The policy covered burglary, not fire, so the insurer pays nothing and Mr. Lawal bears the loss.