WAEC Commerce 1997 Question 99

Question 99

Insurance

The payment made to the insured for loss incurred is

  1. A.premium
  2. B.indemnity
  3. C.ex gratia payment
  4. D.surrender value
  5. E.interest
Show the answer and explanation

Answer: B (indemnity)

Explanation

Indemnity is the compensation paid for the loss suffered.