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Business Services
Question
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A man takes fire insurance policy for his factory. Due to fire, he suffers a loss of Rs. 1,00,000 and he gets the compensation for the same. Later on half burnt goods were sold for Rs. 10,000. Who will get this amount and under what principle of insurance ?

Answer

The insurance company will get this amount as the insured has already got the full compensation for the loss. It will get this amount under the principle of subrogation.

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