A trader insures his warehouse worth ₦5,000,000 with two insurance companies: Company A for ₦3,000,000 and Company B for ₦2,000,000. If the warehouse is totally destroyed, how much will Company A pay?

When the total sum insured equals the value of the property (₦3,000,000 + ₦2,000,000 = ₦5,000,000), each insurer pays its proportion of the loss. Since the warehouse is totally destroyed, Company A pays its full policy amount of ₦3,000,000. The principle of contribution applies, but total destruction means each company pays its full share up to the insured value.