Yuva insured his factory for Rs.40 Lakh against fire. Due to fire, he suffered a loss of Rs.25 Lakh. How much amount he can recover from the insurance company? Justify your answer.
Dear student,
Fire Insurance is a contract of indemnity. It provides protection against loss or damage by fire. In case of a fire, the insured is compensated for the loss he has actually suffered subject to maximum amount of sum insured. In the given case, Yuva can recover Rs. 25 lacs from the insurance company, i.e. the amount of actual loss.
Regards
Fire Insurance is a contract of indemnity. It provides protection against loss or damage by fire. In case of a fire, the insured is compensated for the loss he has actually suffered subject to maximum amount of sum insured. In the given case, Yuva can recover Rs. 25 lacs from the insurance company, i.e. the amount of actual loss.
Regards