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Answer: B. Claim \(\times\frac{\text{Property value}}{\text{Policy value}}\)

Answer: (b) Claim \(\times\frac{\text{Property value}}{\text{Policy value}}\)

Under the average clause, Claim \(=\frac{\text{Policy value}}{\text{Property value}}\times\text{Loss}\). Rearranging, Loss \(=\text{Claim}\times\frac{\text{Property value}}{\text{Policy value}}\).

Doubtly AI · 28 Oct 2026 AI-verified · Oct 2026 Report
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