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JAMB Commerce 2013 Objective — Question 17

Question 17 of 50 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2013 Objective paper, with the correct answer and a full explanation.

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The difference between indemnity insurance and non-indemnity insurance is that the latter provides

  • A. cover for importers against risks
  • B. full payment to the insured
  • C. consolation payment to the insuredCorrect
  • D. cover for exporters against risks

Explanation

Non-indemnity insurance occurs in situations such as death. The beneficiaries of the deceased cannot be indemnified; rather they will be given a consolation payment for the deceased.

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