Answer to Question #330996 in Management for Ceejay

Question

Isaack buys a second-hand car from Reliable motors for R200,000. Isaack insures the car for R200,000 with Amazing Insurance Company.

Advise Isaack as to the nature of the insurance contract that he has concluded with Amazing Insurance Company. (7)

Your motorcycle is valued at R250,000. You insure the motorcycle with C Insurers for R250,000. You also decide the motorcicle with D Insurers for R250,000. On Sonday morning driving on a breakfeast run you damage the motorcycle by hitting a tree on the side of the road. The damage amounts to R250,000. Both insurers indicate that they rather compensate you instead of repairing the motorbike.

What amount of compenstation can you claim from C insurers and D Insurers? (10)