Answer to Question #239762 in Economics for john k

Question

To this effect, most customers have either cancelled their policies during insurance period or have simply not renewed at end of underwriting period. A one Mr Amukena got a household insurance together with office equipment like printers and laptops kept at home following the covid Pandemic. Amukena was told to install fire sensors and sprinklers to make his house insurable. Six (6) months later, thieves broke into Amukena’s home stealing office quipment kept at home and cash money valued at K10,000. Other valuables stolen were two car spare wheels left outside on the veranda not fixed to the car, wheelbarrow and some clothes left on the line.

Upon inspection by the joint team of the insurer loss adjuster and Police, it was discovered that the lock to the main gate was defective.

 

Required

Amukena has approached you as the product development actuary of ABC for advice on whether his claim is payable and if so how much is he liable to be paid?

Answer 1

If the lock to the main gate was defective, then it should be inspected if it is the fault of the owner or a factory defect to advice on whether his claim is payable and how much is he liable to be paid.