Question

Discuss any five circumstances under which an insurer may not compensate the insured in the event of occurrence of a loss

Answer 1

1. If insured has no insurable interest in insured property
2. if property is destroyed by act of nature e.g earthquake
3. If insured had stopped paying premium before occurrence of the risk
4. if loss occurred due to willful action ie insured. property caused the loss
5. if insured fails to report occurrence of the risk within the stipulated period of time.
6. if insurer is insolvent or declared bankrupt
7. if insured went against the principle of utmost good faith.

Answer 2

I