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    Question

    An insured house valued at ₹40 lakh is insured for

    ₹20 lakh. A fire causes ₹10 lakh damage. What will be the claim amount under the average clause?
    A ₹10 lakh Correct Answer Incorrect Answer
    B ₹5 lakh Correct Answer Incorrect Answer
    C ₹8 lakh Correct Answer Incorrect Answer
    D ₹6 lakh Correct Answer Incorrect Answer
    E ₹4 lakh Correct Answer Incorrect Answer

    Solution

    Claim = (Sum Insured / Value) × Loss = (20/40) × 10 = ₹5 lakh

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