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Direction: Read the following text and answer the questions that follow:
Mr. Shailesh owns an oil factory in Rajasthan. Due to illness of his parents living in the UK, he had to go to UK. There he joined a job. He asked his friend Mr. Vijay Arora to take charge of his company till he returns to India. Mr. Vijay took a fire insurance policy for this factory from Sokhim Free Insurance Pvt. Ltd. A month before he got the fire insurance policy, he received a notice from electricity department to get the wiring of the company repaired. He didn’t inform the insurance company about it. He didn’t get the wiring of the factory repaired. After five months of taking the policy, the factory caught fire due to faulty wiring.
“He didn’t get the wiring done ...”.
Q. Name the related principle not followed by Mr. Vijay Arora in the above-stated lines.
  • a)
    Subrogation
  • b)
    Mitigation
  • c)
    Indemnity
  • d)
    Contribution
Correct answer is option 'B'. Can you explain this answer?
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Direction: Read the following text and answer the questions that foll...
Mitigation is the related principle not followed by Mr. Vijay Arora in the above-stated lines.
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Direction: Read the following text and answer the questions that foll...
Principle not followed by Mr. Vijay Arora

The principle not followed by Mr. Vijay Arora is mitigation.

Explanation

Mitigation is a principle that requires the insured to take reasonable steps to minimize the damage or loss in the event of an insured peril. In the given scenario, Mr. Vijay Arora did not inform the insurance company about the notice received from the electricity department to get the wiring of the company repaired. He also did not get the wiring of the factory repaired, which was a reasonable step to mitigate the risk of fire due to faulty wiring.

As Mr. Vijay Arora did not take any steps to mitigate the risk, he did not fulfill his duty as an insured. Therefore, in case of a loss, the insurer may not be liable to pay the full claim amount.

Conclusion

It is important for an insured to take reasonable steps to minimize the damage or loss in the event of an insured peril. Failure to do so may result in the insurer denying the claim or reducing the claim amount.
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Direction: Read the following text and answer the questions that follow:Mr. Shailesh owns an oil factory in Rajasthan. Due to illness of his parents living in the UK, he had to go to UK. There he joined a job. He asked his friend Mr. Vijay Arora to take charge of his company till he returns to India. Mr. Vijay took a fire insurance policy for this factory from Sokhim Free Insurance Pvt. Ltd. A month before he got the fire insurance policy, he received a notice from electricity department to get the wiring of the company repaired. He didn’t inform the insurance company about it. He didn’t get the wiring of the factory repaired. After five months of taking the policy, the factory caught fire due to faulty wiring.“He didn’t get the wiring done ...”.Q. Name the related principle not followed by Mr. Vijay Arora in the above-stated lines.a)Subrogationb)Mitigationc)Indemnityd)ContributionCorrect answer is option 'B'. Can you explain this answer?
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Direction: Read the following text and answer the questions that follow:Mr. Shailesh owns an oil factory in Rajasthan. Due to illness of his parents living in the UK, he had to go to UK. There he joined a job. He asked his friend Mr. Vijay Arora to take charge of his company till he returns to India. Mr. Vijay took a fire insurance policy for this factory from Sokhim Free Insurance Pvt. Ltd. A month before he got the fire insurance policy, he received a notice from electricity department to get the wiring of the company repaired. He didn’t inform the insurance company about it. He didn’t get the wiring of the factory repaired. After five months of taking the policy, the factory caught fire due to faulty wiring.“He didn’t get the wiring done ...”.Q. Name the related principle not followed by Mr. Vijay Arora in the above-stated lines.a)Subrogationb)Mitigationc)Indemnityd)ContributionCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the following text and answer the questions that follow:Mr. Shailesh owns an oil factory in Rajasthan. Due to illness of his parents living in the UK, he had to go to UK. There he joined a job. He asked his friend Mr. Vijay Arora to take charge of his company till he returns to India. Mr. Vijay took a fire insurance policy for this factory from Sokhim Free Insurance Pvt. Ltd. A month before he got the fire insurance policy, he received a notice from electricity department to get the wiring of the company repaired. He didn’t inform the insurance company about it. He didn’t get the wiring of the factory repaired. After five months of taking the policy, the factory caught fire due to faulty wiring.“He didn’t get the wiring done ...”.Q. Name the related principle not followed by Mr. Vijay Arora in the above-stated lines.a)Subrogationb)Mitigationc)Indemnityd)ContributionCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the following text and answer the questions that follow:Mr. Shailesh owns an oil factory in Rajasthan. Due to illness of his parents living in the UK, he had to go to UK. There he joined a job. He asked his friend Mr. Vijay Arora to take charge of his company till he returns to India. Mr. Vijay took a fire insurance policy for this factory from Sokhim Free Insurance Pvt. Ltd. A month before he got the fire insurance policy, he received a notice from electricity department to get the wiring of the company repaired. He didn’t inform the insurance company about it. He didn’t get the wiring of the factory repaired. After five months of taking the policy, the factory caught fire due to faulty wiring.“He didn’t get the wiring done ...”.Q. Name the related principle not followed by Mr. Vijay Arora in the above-stated lines.a)Subrogationb)Mitigationc)Indemnityd)ContributionCorrect answer is option 'B'. Can you explain this answer?.
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