Question

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. Questions: A. Will the company receive claim if the surveyor from insurance company comes to know the real cause of fire? And state any three elements of fire insurance B. Write any two Values which the company ignore while planning to arrange money from false claim.

Answer 1

Answer: A- No, a surveyor from the insurance company will not pay money and add fraudulent charges against the firm.

A Fire Insurance contract is no different from an insurance contract and thus, these are also the features of a fire insurance contract.

The insured must have an insurable interest in the subject matter of the contract both at the time of taking the policy and at the time of taking the claim for loss or damage.

In this case, the insured must disclose all the material facts such as fire detection and fire fighting equipment, their use, etc. It is a contract of indemnity as the insured can claim only the actual damages from the insurer.

Explanation: