Question

Anubhav took a fire insurance policy for his property worth RS. 5,00,000 with two insurers: ICIC Lombard General Insurance Co. Ltd. for Rs. 4,00,000 and Bajaj Allianzm General Insurance Co. Ltd. for Rs. 2,00,000. An electric short circuit in his property cased fire and it resulted in a loss of Rs. 1,50,000. He filed a claim for Rs. 1,50,000against each of the two insurance companies. (i) Can Anubhav recover Rs. 1,50,000 each from the two insurers. Give reason. (ii) Which principle of insurance has been highlighted in the given case? Explain it. (iii) Determine the liability of each of the two insurers with proper explanation​

Answer 1

Answer:

no.he won't clami Rs.150000 from both the insurers

he can claim from icic Lombard general insurance Co.Ltd=

400000×150000/600000=100000

he can claim from Bajaj allianzm general insurance co.Ltd=200000×150000/600000=50000