The claims on kayode's shop would be paid by

  • A musa and okon insurance company
  • B musa insurance company
  • C okon insurance company
  • D Mr Adekunle only

The correct answer is A. musa and okon insurance company

The principle of contribution comes in play here. The principle holding that two or more insurers each liable for a covered loss should participate in the payment of that loss. Having paid its share of a loss, an insurer may be entitled to equitable contribution—a legal right to recover part of the payment from another insurer whose policy was also applicable.

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