Question

33
Anita Bhat bought a place in Shopping Complex in Chandigarh to start a Fashion
Boutique.She decided to take an insurance policy for the shop. At the time of taking the
policy, she did not disclose to the ensure that the electric wiring of that shop was worn out
and needed to be replaced immediately to avoid any kind of eventualities. A week after
taking the insurance policy, and unfortunately a fire broke out in her shop, due to short
circuit and huge losses occurred.
Identify and explain the principle of insurance being violated in the above case.
Differentiate between public company and private company.​

Answer 1

Answers are given below.

Explanation:

• According to the principle of insurance policy, at the time of insurance, the insured should reveal all the details about the property/subject.
• After the contract, the insured can not claim the amount of insurance to cover the loss.
• Anita violated the insurance policy by hiding the important details of the shop.
• A private company is owned by the founder of the company while the public company offer all or some of its entities to public.