Question

cost machinery 60,000 insurance policy includes average clause 50,000 good saved 6.000 amount of claim will be

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Answer 1

Answer:

The actual amount of claim is determined by the formula:

Explanation:

Claim = Loss Suffered x Insured Value/Total Cost. The object of such an Average Clause is to limit the liability of the Insurance Company. Both the insurer and the insured then bear the loss in proportion to the covered and uncovered sum.