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

In an agreed value policy, the insurer and the insured agree upon a value for the insured asset at the inception of the policy. This means that in the event of a total loss, the insurer will pay out the amount specified in this agreement without dispute, regardless of market value at the time of loss.

In this case, the chosen amount of £20,000,000 indicates that this was the value both parties agreed upon at the time the insurance contract was established. Thus, if the aircraft is lost, the airline would be entitled to receive this specific amount as stated in the policy, providing clarity and certainty in the claims process.

The other amounts listed are not correct because they either exceed or fall below the pre-agreed value, which is crucial in an agreed value policy. Therefore, £20,000,000 is the definitive payout amount as it reflects the mutual agreement made at the start of the insurance coverage.