wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

The insured can, in the event of loss, recover the actual amount of loss from the insurer. Which of the following elements of fire insurance makes it happen?

A
Insurable interest
No worries! We‘ve got your back. Try BYJU‘S free classes today!
B
Uberrimae fidei
No worries! We‘ve got your back. Try BYJU‘S free classes today!
C
Indemnity
Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
D
Consideration
No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A Indemnity
The principle of indemnity states that under an insurance contract the insurer undertakes to put the insured in the same position that he occupied immediately before the mishap.

The insurance company undertakes to compensate the insured for the loss caused to him due to damage of the property insured.

For this purpose, the compensation payable and the loss suffered need to be measured in terms of money. All insurance contracts of fire or marine insurance are contracts of indemnity.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Retirement of a Partner - II
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon