Kamau has insured his ship whose value is Sh. 25,000,000 against any losses while lying at the Mombasa port for a sum of Sh.10, 000,000 with Jubilee insurance company limited. He further inured the same ship with Madison insurance company limited for a sum of Sh. 30,000,000.

Subsequently, the port caught fire and the ship was badly damaged. The estimated cost of repair of the ship is Sh. 15,000,000.

Kamau has lodged a claim for compensation from both insurance company.

Kamau has heard you are business law student and has approached you for advice.

According to the laws of insurance, explain to him the legal principles applicable in this case and advise him on the compensation he will be entitled to.

QUESTION THREE

Mwanzia has been selling furniture in the local market for the past one year. Initially the business was doing well but now she hardly makes any profit due to the current situation with Covid 19. She wants to venture into another form of business but does not have enough capital.

She has approached Mueni who has promised to contribute capital with an intention to share profit.

Explain to Mwanzia the nature of this business and explain the process of setting such a business in Kenya.