What amount is the airline entitled to for the aircraft loss, based on the agreed value policy?

In the context of an agreed value insurance policy, the key principle is that the insurer and the insured agree on the value of the asset at the start of the policy. This eliminates disputes at the time of a loss because both parties have pre-determined the value they expect to be compensated for, regardless of the current market value or depreciation.

Therefore, if the answer states that the airline is entitled to £20,000,000 for the loss of the aircraft, this indicates that during the policy negotiation, this specific figure was mutually agreed upon as the value of the aircraft. This amount will be paid out to the airline in the event of a total loss, reflecting the value established when the policy was taken.

The remaining options, while they might represent other figures associated with the aircraft or potential appraisals, do not reflect the agreed-upon value, which is the basis for compensation under this type of insurance policy. Hence, the selected amount represents the specific financial assurance the airline had secured for the agreed loss of the asset.