Eke bought a new car for N1.5M. The practice in the insurance idustry is to pay 10% of the value of the vehicle as premium for comprehensive cover and 2.5% additional cover for strike, riot and civil commotion. Eke was issued a document and two weeks later, he was issued another document different from the first document issued
What is the premium payable for the comprehensive cover
A.
N37,000
B.
N150,000
C.
N155,000
D.
N187,500
Correct answer is D
comprehensive cover = 10% + 2.5% of N1.5M
150,000 + 37,500 = 187500
