Jatin got insured his bungalow against fire for ` 20,00,000. A portion of it was burnt due to fire. It was estimated that an expenditure of ` 15,00,000 would restore the bungalow to its original condition. Jatin made a claim of ` 20,00,000 stating that he was paying premium for the insurance of ` 20,00,000. The insurance company rejected his claim and paid only ` 15,00,000.
Name and explain the principle of insurance on which the company’s decision is
based.
Answers
Answered by
2
Answer:
Jatin got insured his bungalow against fire for ` 20,00,000. A portion of it was burnt due to fire. It was estimated that an expenditure of ` 15,00,000 would restore the bungalow to its original condition. Jatin made a claim of ` 20,00,000 stating that he was paying premium for the insurance of ` 20,00,000. The insurance company rejected his claim and paid only ` 15,00,000.
Name and explain the principle of insurance on which the company’s decision is
based.
Similar questions