BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Principle of mitigation.
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Principle of Insurable Interest
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Principle of indemnity
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Yes, his claim will be accepted.
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Detailed explanation-1: -Proximate cause is very important in fire insurance. The principle of proximate cause has already been discussed in detail. The insurer always takes the proximate cause while paying the claim.
Detailed explanation-2: -Fire insurance is a form of property insurance that offers extra compensation for loss or damage to a building that has been damaged or destroyed by a fire. Fire insurance can be capped at a rate lower than the expense of the damages incurred, necessitating the purchase of a separate fire insurance policy.
Detailed explanation-3: -Principle of subrogation refers to the practice of substitution of a person or group by another in cases of debt claims in insurance. Subrogation is an important component of indemnity principle, which is a differentiating factor between a commercial contract and an insurance contract.
Detailed explanation-4: -Fire insurance means insurance against any loss caused by fire. Fire insurance has no direct relation to saving but is always a question of indemnity for property. The principle of indemnity, which arises under common law, ensures that the insured does not recover more than actual loss suffered by him/her.