Question

Mansi is running a general store. The store was insured against natural disaster like flood, earthquake and fire from Hindustan General Insurance Company for the amount of Rs. 50 lacs. Heavy raining in the city caused massive flood. This left the store without any security. The store was looted by people which was caught on CCTV. She claimed from the insurance company the amount of damage of Rs. 13 lacs for the material and furniture spoiled from flood and also Rs. 5 lacs for the loss of material by theft. She also claimed another Rs. 25 lacs for now converting the store into fully AC and additional floor for more storage space.

Insurance company after assessing the damage to the property and stock due to flood and seeing the CCTV footage accepted the claim of Rs. 13 lacs. Mansi argued that as she has been paying premium for Rs. 50 lacs she should be paid the full claim of Rs. 43 lacs.

According to you, who is correct in the above case? Insurance company or Mansi? Justify your answer by explaining the principles of insurance involved in the above case.

​

Answer 1

Answer:

is insurance compamy that he had a proof from the CCTV footage.