Question

12. Mr. Raunak took an insurance policy against his car. But he sold the car within ab year to his friend Mr. Shobit.
The car was stolen. Mr. Rounak made a claim to Insurance Company. His claim was rejected on the ground
that Mr. Rounak was no longer owner of the car he has no financial involvement which could be insured.
A. Which principle is being followed by the insurance company?
B. Was Mr. Rounak justified in making a claim? Who should have claimed the insurance company?(3)
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Answer 1

Answer:

. Mr. Raunak took an insurance policy against his car. But he sold the car within ab year to his friend Mr. Shobit.

The car was stolen. Mr. Rounak made a claim to Insurance Company. His claim was rejected on the ground

that Mr. Rounak was no longer owner of the car he has no financial involvement which could be insured.