English, asked by sanghamitras250, 6 hours ago

Amarjeet had insured the stock of timber on his land under a fire policy. He had already sold the timber to a company of which he was the only shareholder. Later on the timber as damaged by fire. The insurance company refused to make the payment for claim as it came to know about the situation. On the basis of the given information about Amarjeet, answer the following questions: (a) Is Amarjeet entitled to receive the claim? Give reason in support your answer. (b) Explain the relevant principle of Insurance applied by insurance company in rejecting the claim.

Answers

Answered by angshu12

Answer:

a) Yes,Amarjeet is entitled to receive the claim.

Reason:-

Indemnity: According to the principle of indemnity, the purpose of an insurance contract is to bring back the insured to the same financial position as he or she was before the loss occurred to him or her (because of a mishap).

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b) In a life insurance contract, the insurer pays a fixed sum of money to the insured or the insured’s beneficiaries either at the time of his or her death or on the maturity of the contract, whichever comes earlier. This implies that an indemnity contract is not applicable in the case of life insurance, as human life cannot be compensated.

In an indemnity contract, the insured is paid only the actual amount of the loss and not an assured sum. However, in the case of a life insurance contract, the insured or his beneficiaries are paid an assured sum of money in the event of death of the insured or on the maturity of the contract.

Explanation:

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Answered by ItzKaminiForYou

Answer:

Yes,Amarjeet is entitled to receive the claim.

Yes,Amarjeet is entitled to receive the claim.Reason:-

Yes,Amarjeet is entitled to receive the claim.Reason:-Indemnity: According to the principle of indemnity, the purpose of an insurance contract is to bring back the insured to the same financial position as he or she was before the loss occurred to him or her (because of a mishap)._________________________________b) In a life insurance contract, the insurer pays a fixed sum of money to the insured or the insured’s beneficiaries either at the time of his or her death or on the maturity of the contract, whichever comes earlier. This implies that an indemnity contract is not applicable in the case of life insurance, as human life cannot be compensated.In an indemnity contract, the insured is paid only the actual amount of the loss and not an assured sum. However, in the case of a life insurance contract, the insured or his beneficiaries are paid an assured sum of money in the event of death of the insured or on the maturity of the contract.

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