What is the amount to be paid by the insurance company _______?

Mr. Olatunde took up a fire insurance on a property valued at ₦1000 and the amount insured is ₦80. Thee ₦400. If the property caught fire causing a loss of insurance was taken with the clause with average. What is the amount to be paid bý the insurance company?

A. ₦420
B. ₦320
C. ₦460
D. ₦560

Correct Answer:

Option B = ₦320