The claims on kayode’s shop would be paid by
-
A.
musa and okon insurance company -
B.
musa insurance company -
C.
okon insurance company -
D.
Mr Adekunle only
Correct Answer: Option A
Explanation
The principle of contribution comes in play here. The principle holding that two or more insurers each liable for a covered loss should participate in the payment of that loss. Having paid its share of a loss, an insurer may be entitled to equitable contribution—a legal right to recover part of the payment from another insurer whose policy was also applicable.