A person gets his stock worth Rs. 50,000 insured for Rs. 70,000. A fire occurs and the whole stock gets damaged. The Insurance Company admits a claim of Rs. 50,000 only and not Rs. 70,000. Identify the principle of insurance being applied?
A. Principle of Indemnity
B. Principle of Insurable Interest
C. Principle of Subrogation
D. Principle of Contribution
Answer:A
A person gets his stock worth Rs. 50,000 insured for Rs. 70,000. A fire occurs and the whole stock gets damaged. The Insurance Company admits a claim of Rs. 50,000 only and not Rs. 70,000. Identify the principle of insurance being applied?
A. Principle of Indemnity B. Principle of Insurable Interest C. Principle of Subrogation D. Principle of Contribution