a factory owner gets his stock of goods insured but hmd hide the fact that the electricity board has issued - Business Studies - Business Services

Question

a factory owner gets his stock of goods insured but hmd hide the
fact that the electricity board has issued him statutory warning
letter to get his factory as wiring changed later on the factory
catches fire due to short circuit which principle is violated in
this case?

Divyata · Answer

utmost good faith as he didnt discolse the fact to the insurer and
even mitigation as he should take care of the asset insured

a factory owner gets his stock of goods insured but hmd hide the fact that the electricity board has issued him statutory warning letter to get his factory as wiring changed later on the factory catches fire due to short circuit which principle is violated in this case?