Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer?

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Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.

Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?
Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:

a)
Sunny can recover rupees five lakhs from Y.
b)
Sunny cannot recover any amount from Y.
c)
Sunny must pay Y, the rupees five lakhs he received from X.
d)
Sunny cannot insure his car with both X and Y at the same time.

Correct answer is option 'B'. Can you explain this answer?

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Legal Principle: The insurer agrees to pay no more than the actual amo...

Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.

Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value. He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?

Explanation: The legal principle stated above states that the insurer agrees to pay no more than the actual amount of the loss. In the given fact situation, Sunny insures his car with two different insurance companies, X and Y, for the same value.

Since the car suffers a total loss, Sunny files separate suits against X and Y to recover the amount.

In this case, Sunny has already recovered rupees five lakh from X, which is the actual value of the car. According to the legal principle, the insurer is liable to pay no more than the actual amount of the loss.

Therefore, in the suit against Y, Sunny cannot recover any amount because he has already received the full amount from X. This is because the principle of indemnity is followed in insurance contracts, which means that the insured cannot make a profit from the insurance claim but can only recover the actual amount of the loss.

Option B, which states that Sunny cannot recover any amount from Y, is the most appropriate answer based on the legal principle stated above.

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Legal Principle: The insurer agrees to pay no more than the actual amo...

Option B is correct because principle clearly states that the insurer agrees to pay no more than the actual amount of loss.

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Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer? for CLAT 2025 is part of CLAT preparation. The Question and answers have been prepared according to the CLAT exam syllabus. Information about Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CLAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer?.

Solutions for Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CLAT. Download more important topics, notes, lectures and mock test series for CLAT Exam by signing up for free.

Here you can find the meaning of Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Legal Principle: The insurer agrees to pay no more than the actual amount of the loss.Fact Situation: Sunny insures his car worth rupees five lakh with X, an insurance company, for its value.He again insures the same car with Y, another insurance company, on the same terms. There is an accident and the car suffers a total loss. In his separate suits against X and Y, if Sunny recovers rupees five lakh from X, how much can he recover from Y?Which of the following statements is the most appropriate in relation to the legal principle stated above? Options:a)Sunny can recover rupees five lakhs from Y.b)Sunny cannot recover any amount from Y.c)Sunny must pay Y, the rupees five lakhs he received from X.d)Sunny cannot insure his car with both X and Y at the same time.Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CLAT tests.

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