Insurance WAEC

The effect of the minimum coverage on the two vehicles is the?

Use the following information to answer the question below.

Basanya’s vehicle was hit at the rear by jaguna’s vehicle. The two vehicles had a minimum cover. The estimate of repairs was as follows;

Basanya’s vehicle – N155,000; Jaguna’s vehicle- N75,000

A. two vehicles will be repaired by jaguna’s insurer
B. insurer of each vehicle is responsible for the repairs
C. vehicle of Basanya will be repaired by jaguna’s insurer
D. two vehicles are not entitled to compensation from the insurer

Correct Answer: Option C

C. vehicle of Basanya will be repaired by jaguna’s insurer

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