NAME INSURED AMOUNT(₦) ACTUAL VALUE(₦) ACTUAL LOSS(₦) Mr. P Mr. K Mr. R 25,000 30,000 40,000 100,000 120,000 150,000 30,000 40,000 50,000 What insurance pri...
Question 1 Report
| NAME | INSURED AMOUNT(₦) |
ACTUAL VALUE(₦) |
ACTUAL LOSS(₦) |
| Mr. P Mr. K Mr. R |
25,000 30,000 40,000 |
100,000 120,000 150,000 |
30,000 40,000 50,000 |
What insurance principle has Mr. R violated if he decides to overstate the actual value of his property?
Answer Details
The insurance principle that Mr. R violated if he decides to overstate the actual value of his property is the principle of "Uberrimae fidei" which means "Utmost Good Faith". This principle requires the insured to provide all material information regarding the insurance contract, including the true value of the property, to the insurer. By overestimating the actual value of his property, Mr. R is not providing accurate information to the insurer, which is a violation of the principle of utmost good faith.
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