Question

Q3. Sarthak Electronics Ltd. has a loss of Rs 15,00,000 to pay. They are short of
fund so they are trying to find means to arrange fund. Their manager suggests 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 play loan
(a) Will the company receive claim if the surveyor from insurance company comes
to know the real cause of fire?
(b) Write any two Values which the company ignore while planning to arrange
money from false claim.
(c) State any three elements of fire insurance
estion Carry 3 Marks:​

Answer 1

I hope my answer is correct

Answer 2

Following are the answers to the given questions:

Explanation:

(a)

• No, the company will not receive any compensation if the surveyor from the insurance company finds out that there was no fire at all.

(b)

• The company is overlooking the value of trust, as they are trying to take the advantage of the insurance company that has tied knots with them in the hope of a just business.

• The company is also abandoning honesty as they are falsely claiming the insurance, without any menace.  

(c)

• Three elements of fire insurance are as follows:

1. Insurable interest is to be presented in both cases when the policy is taken and at the time of loss.
2. The bond of fire insurance is a contract of greatest good faith.
3. The bond of fire insurance is a contract of firm protection.