Question

Divya Garments Ltd. has a loan of Rs. 10,00,000 to pay. They are short of funds so they are trying to find means to arrange funds.
Their manager suggested to 'claim from insurance company
against stock lost due to fire in the warehouse. He actually meant
that they can put their warehouse on fire and claim from Insurance company against stock insured. They will use the claim money to pay loan.
(a) Will the company receive claim if the surveyor from company comes to know the seal cause of fire?
(b) Which values did company ignore while planning to arrange
money from false claim?
(c) Explain three elements of fire insurance.​

Answer 1

Answer:

10,00,000 to pay. They are short of funds so they are trying to find means to arrange funds. Their manager suggested to claim from insurance company against stock lost due to fire in the ware house. He actually meant that they can put their warehouse on fire and claim from Insurance company against stock insured.