A ship carrying rose flowers to France for Valentine day was insured against losses arising from accident. The ship reached the port safely and on time but the consignment got spoiled due to delay in unloading Is the insurance company liable to pay the claim of loss? Which principle of insurance is violated? Explain the principle.
Answers
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3
Answer:
principle of indemnity.
Explanation:
This principle states that the compensation will be given if there is any damage or loss.
Answered by
3
Answer:
The principle violated here is “Causa-proxima (nearest cause)”
Explanation:
According to this principle the insured can claim compensation for a loss only if it is caused by the risk insured against. The risk insured should be nearest cause (not a remote cause) for the loss. The insurer did not pay any compensation for the loss because the proximate cause of loss was delay in unloading and not any accident during voyage. The Ship was insured against losses arising from accident not against delay in unloading. So, therefore the insurance company is not liable to pay any claim of loss.
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