Manish,(yiry//tnfwdb) Rahul and Madhav live in the same locality. They used to meet and discuss their ideas. After discussing the recent fire breakout in their area, they decided to take fire insurance for their house or work area. Manish gets his house insured against fire for ₹1 lakh and during the policy period, his house gets damaged due to fire and the actual loss amounts to ₹2.5 lakh. The insurance company acquired the burning material and approved his claim. Rahul gets his godown insured against fire for ₹1 lakh but does not take enough precautions to minimize the chances of fire like installing fire extinguishers in the factory. During the policy, a fire takes place in his godown and he does not take any preventive steps like throwing water and calling the employees from the firefighting department to control the fire. He suffered a loss of ₹1,20,000. Madhav took a fire insurance policy of ₹20 lakh for his factory at an annual payment of ₹24,000. In order to reduce the annual premium, he did not disclose that highly explosive chemicals are being manufactured in his factory. Due to a fire, his factory gets severely damaged. The insurance company refused to make payment for the claim as it became aware of the highly explosive chemicals. 1. How much can Manish claim from the insurance company? 1. 2.5 Lakhs 2. 1 Lakh 3. 2 Lakhs 4. None of the above 2. How much compensation can Rahul get from the insurance company? 1. ₹2,00,000 2. ₹1,20,000 3. ₹1,00,000 4. Nil 3. Which principle is violated in the case of Rahul? 1. Mitigation 3. Utmost Good Faith 2. Insurable Interest 4. Indemnity 4. Which principle of Insurance is violated by Madhav? 1. Utmost Good Faith 2. Insurable interest 3. Subrogation 4. Proximate Cause