Mr. Adeyemi's car worth ₦4,000,000 is insured for only ₦2,000,000. If he suffers a partial loss of ₦1,200,000, how much will the insurance company pay under the average clause?

Under the average clause, the insurer pays in the proportion that the sum insured bears to the actual value of the property. Payment = (Sum insured / Actual value) × Loss = (₦2,000,000 / ₦4,000,000) × ₦1,200,000 = 0.5 × ₦1,200,000 = ₦600,000. The insured bears the remaining ₦600,000 as a co-insurer.