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Khalifa has an insurance policy with the sum insured AED 250,000. The policy is subject to average and the value at risk is AED 320,000.
Khalifa has an insurance policy with the sum insured AED 250,000. The policy is subject to average and the value at risk is AED 320,000. If Khalifa suffers a loss of AED 50,000, what is the amount that he can recover from the insurance company? ( 6 marks)
Average formula: (Sum Insured/ Value of goods at risk carried) X loss
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Financial Risk Manager Handbook
Authors: Philippe Jorion, Global Association Of Risk Professionals
5th Edition
0470479612, 978-0470479612
