Question

Raghu insured his cargo ship against perils of see through a marine insurance policy of rupees 5 lakh. During the voyage the sea water entered into the ship and the cargo was destroyed. He suffered a loss of 2,00,000. He filed a claim for the loss against the insurance company. Can Raghu recover the loss from the insurance company? Name and explain the principle of insurance has been highlighted in the given case.
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Answer 1

Answer:

Principle of Utmost Good Faith= The marine insurance policy relies on the principle of utmost good faith, which clearly states that at the time of filling the marine insurance policy document, the applicant should disclose the correct information. Also, the applicant would not withhold any material information. If the applicant conceals or hides important information, the marine insurance company has all rights to reject the policy application