Q6. A factory ovner gets his stock insured, but hides the fact that the electric board has issued him a statutory warning letter to get his factory's wiring changed. Later on, the factory catches fire due to short circuit of wiring. Can he claim compensation. Also explain the Principle of Insurance, which has been violated in this case.
Dear Student,
No he cannot claim compensation.
The principle of Utmost Good faith has been violated in this case. This principle states that the Insurer and the insured have faith in each other and in contract signed by them. Both the parties must present all the necessary facts and details related to subject matter of insurance.
Regards
No he cannot claim compensation.
The principle of Utmost Good faith has been violated in this case. This principle states that the Insurer and the insured have faith in each other and in contract signed by them. Both the parties must present all the necessary facts and details related to subject matter of insurance.
Regards