Adekunle bought a car for N2,000,000. he insured it with musa insurance company and okon insurance company for N600,000 and N800,000 respectively. on his way to his office, he had an accident which destroyed his windscreen valued at N30,000 and kayode’s shop valued at N15,000.
The policy cover with musa insurance is
- averagely insured
-
fully insured
- under insured
- over insured
The correct answer is: B
Explanation
Fully Insured is another way of saying there is no-risk or liability as the policyholder and the insurance company assumes all the risk aside from paid premiums.