11th Class Business Studies Business Services Question Bank Business Services (Higher)

  • question_answer
    A person gets his stock of goods insured, but he hides the fact that the electricity board has issued him statutory warning letter to get his factory's wiring changed later on, the factory catches fire due to short circuit. Can he claim compensation? State the name of "Principle".


    Ans.     No, he cannot claim the compensation because the principle of utmost good faith is not followed. According to this principle, it is the duty of the insurer and insured to voluntarily make full accurate disclosure of all facts, material to the insurance contract.

You need to login to perform this action.
You will be redirected in 3 sec spinner