Question

A factory owner took a fire insurance policy for his factory without informing the insurance company

that he received notice from electricity department to get the wiring of the factory repaired. After six

months of taking policy the factory caught fire due to faulty wiring. Will the factory owner get

compensation for the loss due to fire? Which principle of insurance is related with the case? Explain

that principle


please answer.​

Answer 1

Answer:

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Explanation:

Principle of Insurable interest

Insurable interest means that the subject matter for which the individual enters the insurance contract must provide some financial gain to the insured and also lead to a financial loss if there is any damage, destruction or loss.