Gce Model Questions Vol1 2025 Commerce Question 35
Practice objective / multiple choice question 35 from the 2025 Gce Model Questions Vol1 Commerce examination.
An individual purchases a comprehensive motor‑insurance policy for a vehicle insured at \(\N2{,}500{,}000\). The base premium is 3% of the insured value. Because the driver is classified as high‑risk, a loading of 20% is added. A No‑Claim Discount (NCD) of 15% is then applied to the loaded premium. After that, a government tax of 5% is added to the discounted premium. The policy also includes optional roadside‑assistance cover costing a flat \(\N12{,}000\), which is added after tax.\n\n(a) Determine the total annual premium payable (in \(\N\)).\n(b) If a claim is made for damage costing \(\N350{,}000\) and the policy has a deductible of 2% of the insured value, how much will the insurer pay?
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This is Gce Model Questions Vol1 2025 Commerce Question 35. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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