| 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?
- insurable interest
-
uberrimae fidei
- subrogation
- indemnity
The correct answer is: B
Explanation
The uberrimae fidei principle otherwise known as "utmost good faith'' is an insurance principle that requires an insured or the party to the insurance policy to be of a good standard and reveal all material facts that could influence the decision of the other party.