📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • âś–

      Question

      If the policy is without average clause, a claim for

      loss of profit will be?
      A Sum insured. Correct Answer Incorrect Answer
      B Actual Loss Correct Answer Incorrect Answer
      C Higher of actual loss and sum insured Correct Answer Incorrect Answer
      D Lower of actual loss and sum insured Correct Answer Incorrect Answer
      E None of these Correct Answer Incorrect Answer

      Solution

      In policies without an average clause, the insurance company will typically pay the lower of the actual loss suffered by the insured or the sum insured amount. This helps prevent overcompensation and ensures that the claim amount is reasonable and aligned with the terms of the policy.

      Practice Next
      More Accounts Questions

      Relevant for Exams:

      ask-question