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Molefe’s factory is insured under the fire policy. One of the factory’s worker’s...
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Molefe’s factory is insured under the fire policy. One of the factory’s worker’s who was dismissed, deliberately sets fire to some flammable material that is stored in the factory. However, the sprinkler system activated and extinguished the fire but caused water damage to the other stock in the factory. In addition, some debtors’ records were also destroyed. It is estimated that it will take less or more than two months to restore the factory to full production. CHOOSE THE CORRECT STATEMENT FROM THE FOLLOWING OPTIONS:a) The damage caused dismissed factory worker is covered by the fire policy.b) Water damage caused by the sprinkler system will not be covered in terms of the policy c) The insurer will not be liable for any revenue losses incurred as a result of the damage to debtors' records d) The water is a peril in terms of the fire policy.
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