Mr. David Otieno insured his house at Milimani Kisumu County with three insurance companies. Kenindia covered 250,000Kshs, Gateway covered 500,000Kshs and Amaco Insurance covered 200,000Kshs. Two years later, the house was partly destroyed by fire and the loss to the house was estimated to be 450,000Kshs.
Required
Calculate:
(i) Total sum insured (2 marks).
(ii) The amount each company is required to contribute towards the loss
(4 marks).
(b) Describe the characteristics generally observed in the case of life, marine, fire and general insurance in Kenya (9 marks).