You are a claims handler for an insurer. One of your policyholders, a farmer, has submitted a claim in respect of the following losses caused by a lightning strike:

Total loss of a tractor that caught fire when it was struck by lightning.

Damage to a grain shed caused when the fire spread.

Animal feed destroyed by water used to extinguish the fire.

PLEASE ANSWER THE QUESTIONS CAREFULLY AND NOT GO OFF WHAT IS BEING ASKED!!!!

a) Explain, citing relevant case law, whether losses are recoverable in connection with the lightning damage to the:

(i) tractor. (7 marks)

(ii) grain shed. (4 marks)

(iii) animal feed. (4 marks)

b) Discuss how indemnity will be measured for the tractor and the effect of a payment on policy cover. (5 marks)