fire Insurance- Duty of Disclosure
Geneviere Cheah
(Querist) 13 August 2009
This query is : Resolved
The question that i would like to ask is as follow:
Mr Apikumar has bought a fire insurance policy to cover the fire risk of his paint manufacturing factory. A week later, a fire broke out and destroyed his factory. He now seeks for compensation. However, after 2 months of investigation, the insurance company found out that Mr Apikumar has failed to disclose certain information i.e that he had stored numerous petrol and firecrackers inside one of the factory's storeroom. The issue arise is whether the non-disclosure will cause the contract become void. Whether it is reasonable to store petrol especially firecrackers inside a paint manufacturing factory. Can you tell me what should i focus on in this question because there is not much cases that support the situation.
Kiran Kumar
(Expert) 13 August 2009
what i ve experienced that it is the duty of insurance company to issue the cover note only after checking the premises.
but if subsequently there is some violation of the terms of the policy then the insurance company can not be held liable.
can u understand?
N.K.Assumi
(Expert) 14 August 2009
Firstly, it is a fire Insurance, so see the insurance certificate and also the terms and conditions of the policy that covers such policy. All such documents are in the possession of the Insurance company and they are bound to submit it in the Court even if Apikumar does not disclose it:Supreme Court has emphasize the needs to submit the original insurance documents in the courts in several cases.See the Supreme Court Rulings in National Insurance Company vs Jugal Kishore:1988-CAR-0113-SC.
