Question

Swad agro s owner got his mil insured against fire from Oriental insurance company.at the time of getting his mill insured it did not disclose to the insurance company that the electricity department had just issued in the notice to get their old electric wire change at the earliest .after 3 months of insurance sthe mill caught fire on account of the old electric wires. The mill owner could not get compensation .which principle of insurance is violated here?​

Answer 1

Answer:

principle of utmost good faith

The fundamental principle is that both the parties in an insurance contract should act in good faith towards each other, i.e. they must provide clear and concise information related to the terms and conditions of the contract.

The Insured should provide all the information related to the subject matter, and the insurer must give precise details regarding the contract.

Explanation:

as it is the duty of the insured to disclose all the details to the insurer.