M. BELLO, JSC (Delivering the Leading Judgment): The Appellant is an insurance company and was the insurer of a motor vehicle, No. KN 452, acquired by the Respondent in September 1967 under a hire-purchase agreement. The insurance agreement between the Appellant and the Respondent was in the nature of a comprehensive policy the terms of which are contained in the Standard Policy of the Appellant, which was admitted at the trial as Exhibit 23. The liability of the insurer arising from loss or damage of the insured motor vehicle is contained in clause 2 of the Policy, which reads:
"2. At its own option the company may pay in cash the amount of the loss or damage or may repair re-instate or replace the motor vehicle or any part thereof or its accessories or spare parts. The liability of the company shall not exceed the value of the parts lost or damaged and the reasonable cost of fitting such parts. The insured estimate of value stated in the schedule shall be the maximum amount payable …