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Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse and had taken a fire insurance policy for the same. On 25 feb 2017,his stock caught fire, he however was not worried about the same and as he had insured the goods against the risk of fire, he did not even call the fire department for a fire lighting machines. The actual losses amounted to rs 65,000. State the relevant insurer principle in this regard. a. utmost good faith b. insurable interest c. Cause Proxima d. mitigation.?
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Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse ...
Utmost Good Faith is a principle in insurance which requires the insured to accurately disclose all material facts related to the insurance policy. This includes details such as the value of the insured goods, the risk of fire, and other relevant information. In this case, the insured accurately disclosed the value of his goods and took out a fire insurance policy to cover the risk of fire. As a result, the insurer is liable to pay the insured for the actual losses of Rs. 65,000 incurred due to the fire.
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Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse ...
Relevant Insurer Principle: b. Insurable Interest
Insurable interest is a fundamental principle of insurance that requires the insured to have a financial interest in the property or person being insured. It ensures that the insured would suffer a financial loss if the insured property or person were to suffer a covered loss. In this case, Sanjay Bhattacharya had a valid insurable interest in his goods valued at Rs 80,000 that were stored in the warehouse.
Sanjay Bhattacharya had an insurable interest in his goods because they held a financial value of Rs 80,000. This means that if the goods were destroyed or damaged by fire, he would suffer a financial loss equal to the value of the goods. Therefore, he had a legitimate reason to insure his goods against the risk of fire.
When the stock caught fire on 25th February 2017, Sanjay Bhattacharya did not panic or call the fire department for assistance. This was because he had already taken a fire insurance policy for his goods, which covered the risk of fire. He knew that the insurance policy would compensate him for the actual losses he would incur due to the fire.
The actual losses incurred by Sanjay Bhattacharya amounted to Rs 65,000. According to the principle of insurable interest, the insured is entitled to be indemnified for the actual losses suffered, up to the limit specified in the insurance policy. In this case, Sanjay Bhattacharya had insured his goods for their full value of Rs 80,000. Therefore, he is eligible to receive compensation for the actual losses of Rs 65,000.
The principle of insurable interest is relevant in this case as it ensures that Sanjay Bhattacharya, as the insured, has a financial interest in the goods being insured. It allows him to claim compensation for the actual losses incurred due to the fire, as specified in his fire insurance policy.
Explanation:
Insurable interest is a fundamental principle of insurance that requires the insured to have a financial interest in the property or person being insured. It ensures that the insured would suffer a financial loss if the insured property or person were to suffer a covered loss. In this case, Sanjay Bhattacharya had a valid insurable interest in his goods valued at Rs 80,000 that were stored in the warehouse.
Insurable Interest in the Case:
Sanjay Bhattacharya had an insurable interest in his goods because they held a financial value of Rs 80,000. This means that if the goods were destroyed or damaged by fire, he would suffer a financial loss equal to the value of the goods. Therefore, he had a legitimate reason to insure his goods against the risk of fire.
Action Taken:
When the stock caught fire on 25th February 2017, Sanjay Bhattacharya did not panic or call the fire department for assistance. This was because he had already taken a fire insurance policy for his goods, which covered the risk of fire. He knew that the insurance policy would compensate him for the actual losses he would incur due to the fire.
Actual Losses and Relevant Principle:
The actual losses incurred by Sanjay Bhattacharya amounted to Rs 65,000. According to the principle of insurable interest, the insured is entitled to be indemnified for the actual losses suffered, up to the limit specified in the insurance policy. In this case, Sanjay Bhattacharya had insured his goods for their full value of Rs 80,000. Therefore, he is eligible to receive compensation for the actual losses of Rs 65,000.
Conclusion:
The principle of insurable interest is relevant in this case as it ensures that Sanjay Bhattacharya, as the insured, has a financial interest in the goods being insured. It allows him to claim compensation for the actual losses incurred due to the fire, as specified in his fire insurance policy.
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Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse and had taken a fire insurance policy for the same. On 25 feb 2017,his stock caught fire, he however was not worried about the same and as he had insured the goods against the risk of fire, he did not even call the fire department for a fire lighting machines. The actual losses amounted to rs 65,000. State the relevant insurer principle in this regard. a. utmost good faith b. insurable interest c. Cause Proxima d. mitigation.?
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Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse and had taken a fire insurance policy for the same. On 25 feb 2017,his stock caught fire, he however was not worried about the same and as he had insured the goods against the risk of fire, he did not even call the fire department for a fire lighting machines. The actual losses amounted to rs 65,000. State the relevant insurer principle in this regard. a. utmost good faith b. insurable interest c. Cause Proxima d. mitigation.? for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse and had taken a fire insurance policy for the same. On 25 feb 2017,his stock caught fire, he however was not worried about the same and as he had insured the goods against the risk of fire, he did not even call the fire department for a fire lighting machines. The actual losses amounted to rs 65,000. State the relevant insurer principle in this regard. a. utmost good faith b. insurable interest c. Cause Proxima d. mitigation.? covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse and had taken a fire insurance policy for the same. On 25 feb 2017,his stock caught fire, he however was not worried about the same and as he had insured the goods against the risk of fire, he did not even call the fire department for a fire lighting machines. The actual losses amounted to rs 65,000. State the relevant insurer principle in this regard. a. utmost good faith b. insurable interest c. Cause Proxima d. mitigation.?.
Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse and had taken a fire insurance policy for the same. On 25 feb 2017,his stock caught fire, he however was not worried about the same and as he had insured the goods against the risk of fire, he did not even call the fire department for a fire lighting machines. The actual losses amounted to rs 65,000. State the relevant insurer principle in this regard. a. utmost good faith b. insurable interest c. Cause Proxima d. mitigation.? for Class 7 2024 is part of Class 7 preparation. The Question and answers have been prepared according to the Class 7 exam syllabus. Information about Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse and had taken a fire insurance policy for the same. On 25 feb 2017,his stock caught fire, he however was not worried about the same and as he had insured the goods against the risk of fire, he did not even call the fire department for a fire lighting machines. The actual losses amounted to rs 65,000. State the relevant insurer principle in this regard. a. utmost good faith b. insurable interest c. Cause Proxima d. mitigation.? covers all topics & solutions for Class 7 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Sanjay Bhattacharya keep his goods valued at rs 80,000 in a warehouse and had taken a fire insurance policy for the same. On 25 feb 2017,his stock caught fire, he however was not worried about the same and as he had insured the goods against the risk of fire, he did not even call the fire department for a fire lighting machines. The actual losses amounted to rs 65,000. State the relevant insurer principle in this regard. a. utmost good faith b. insurable interest c. Cause Proxima d. mitigation.?.
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