Khalil has a house insurance policy with the sum insured 150,000 AED. Three months after Khalil bought the policy, there was a fire in his house. At the time of the loss the real value of the house was 180,000 AED.

Required:

a) Calculate Khalils proportion of average? (3 marks)

b) If Khalil suffers damage of 80,000 AED, what is the maximum amount that Khalil can claim from the insurance company? (3 marks)

c) What will be the maximum amount that Khalil can claim if there is 400 AED excess policy? (4 marks)