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

Mr. Olatude took up a fire insurance on a property valued at N1000 and the amount insured is N 800. If the insurance was taking with the clause ‘with average‘, What is the amount to be paid by the insurance company?

A. N320
B. N420
C. N460
D. N560

Correct Answer:

Option A – N320