Question

a) Why did ZYZ Insurance Company refuse to pay the claim?
b) What are the duties of a policyholder that should be followed by Mr. Chowdhury?
c) What are the general elements of an insurance contract? Describe with example.
d) Which of the principles did Mr. Chowdhury violate? Justify your answer from insurance point of
view.

Answer 1

Answer:

Fraud. To establish fraud your insurer needs to prove that you intended to deceive the insurer or acted with reckless indifference as to whether or not your insurer was deceived. If fraud is established by your insurer then it can reject your insurance claim and void your policy.