Answer this question plz...
A factory owner insures his stock of goods. He fails to make necessary safety arrangement to protect the factory from fire. Later, factory catches fire and could not be controlled because there were no fire extinguishers in the factory.Will the factory owner receive insurance claim?
Dear student,
Mitigation of loss is an important principle of insurance contracts. It states that it is duty to insured to take all possible steps to minimise the loss in case of any accident or mishap. The insured should not be reckless assuming that his property is insured. He should make all possible efforts to save his insured property.
In the given case, the factory owner, i.e. insured failed to make necessary safety arrangement to protect his factory from fire. So, he will not be liable for any claim from the insurance company as he has violated the principle of mitigation of loss.
Regards
Mitigation of loss is an important principle of insurance contracts. It states that it is duty to insured to take all possible steps to minimise the loss in case of any accident or mishap. The insured should not be reckless assuming that his property is insured. He should make all possible efforts to save his insured property.
In the given case, the factory owner, i.e. insured failed to make necessary safety arrangement to protect his factory from fire. So, he will not be liable for any claim from the insurance company as he has violated the principle of mitigation of loss.
Regards