Suleiman lives in the suburbs of Jeddah and works in the city center. Every day he uses his motorcycle to reach his office and then to return home because he does not have a car and there is no public transportation available near his house. One day, Suleiman injured a child, 7-year old Farrukh, when he failed to stop at a red light. Farrukh broke one hand and also suffered a mild concussion. He spent a few weeks in a hospital. After the accident a court awards a liability judgment of SR 75,000 against Suleiman. He has two third-party liability insurance policies covering losses occurred while riding a motorcycle. The first policy by Awwal Moto-Insurer is a special motorcycle insurance with a liability limit of SR 40,000, the second one is a private liability insurance in a homeowner's insurance package with a liability limit of SR 80,000 by Zahir Home Insurance. How much, if any, will each of Suleiman's insurer pay, if he has the following provisions? a) b) c) Pro rata liability. Contribution by equal shares. Awwal is the primary insurer and Zahir is the excess insurance. a) In case pro rata liability SR will be paid by Awwal Moto-Insurer and SR will be paid by Zahir Home insurance. b) In case contribution by equal shares SR will be paid by Awwal Moto-Insurer and SR will be paid by Zahir Home insurance. c) In such a case, Awwal will pay SR and Zahir will pay SR Suleiman lives in the suburbs of Jeddah and works in the city center. Every day he uses his motorcycle to reach his office and then to return home because he does not have a car and there is no public transportation available near his house. One day, Suleiman injured a child, 7-year old Farrukh, when he failed to stop at a red light. Farrukh broke one hand and also suffered a mild concussion. He spent a few weeks in a hospital. After the accident a court awards a liability judgment of SR 75,000 against Suleiman. He has two third-party liability insurance policies covering losses occurred while riding a motorcycle. The first policy by Awwal Moto-Insurer is a special motorcycle insurance with a liability limit of SR 40,000, the second one is a private liability insurance in a homeowner's insurance package with a liability limit of SR 80,000 by Zahir Home Insurance. How much, if any, will each of Suleiman's insurer pay, if he has the following provisions? a) b) c) Pro rata liability. Contribution by equal shares. Awwal is the primary insurer and Zahir is the excess insurance. a) In case pro rata liability SR will be paid by Awwal Moto-Insurer and SR will be paid by Zahir Home insurance. b) In case contribution by equal shares SR will be paid by Awwal Moto-Insurer and SR will be paid by Zahir Home insurance. c) In such a case, Awwal will pay SR and Zahir will pay SR
