Naresh took a fire insurance policy from NICL of Rs 50 Lakhs for his factory at the annual premium of Rs 75,000 in order to avoid premium more than his amount he did not disclose that highly explosive chemicals are being manufactured in his factory, due to a fire his factory gets damaged. The insurance company NICL refused to make the payment for the claim as they were aware of the highly explosive chemicals. Is Naresh entitled to claim? Explain the principle of insurance violated by Naresh.

Naresh took a fire insurance policy from NICL of Rs 50 Lakhs for his f

1.	Naresh took a fire insurance policy from NICL of Rs 50 Lakhs for his factory at the annual premium of Rs 75,000 in order to avoid premium more than his amount he did not disclose that highly explosive chemicals are being manufactured in his factory, due to a fire his factory gets damaged. The insurance company NICL refused to make the payment for the claim as they were aware of the highly explosive chemicals. Is Naresh entitled to claim? Explain the principle of insurance violated by Naresh.
Answer» Naresh took a fire insurance policy from NICL of Rs 50 Lakhs for his factory at the annual premium of Rs 75,000 in order to avoid premium more than his amount he did not disclose that highly explosive chemicals are being manufactured in his factory, due to a fire his factory gets damaged. The insurance company NICL refused to make the payment for the claim as they were aware of the highly explosive chemicals. Is Naresh entitled to claim? Explain the principle of insurance violated by Naresh.