| 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 that destroyed his windscreen valued at N30,000 and Kayode’s shop valued at N15,000. |
A. Musa and Okon insurance company
B. Musa insurance company
C. Okon insurance company
D. Mr. Adekunle only
Correct Answer: Option A
A. Musa and Okon insurance company
Explanation
The principle of contribution comes in play here. The principle holding that two or more insurers each liable for a covered loss should participate in the payment of that loss. Having paid its share of a loss, an insurer may be entitled to equitable contribution—a legal right to recover part of the payment from another insurer whose policy was also applicable.
