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
- N37,000
- N150,000
- N155,000
-
N187,500
The correct answer is: D
Explanation
comprehensive cover = 10% + 2.5% of N1.5M
150,000 + 37,500 = 187500