Module-05

INSURANCE CLAIMS
Meaning, Features, and Principles of Fire Insurance. Meaning of Fire Claim. Procedure for Making a Fire
Insurance Claim. Concept of Loss of Stock and Loss of Profit, Salvage, and Average Clause. Illustrations on
ascertainment of claim amount covering the adjustments for over-valuation and under-valuation of stock
and abnormal line of items.
Insurance: The burden of losses or risk due to some uncertain events will be covered from others that
process called Insurance.
Fire Insurance: Fire insurance is a contract in which an insurance company agrees to compensate the
insured for losses or damages caused by fire, subject to the terms and conditions of the policy. It provides
financial protection to individuals and businesses by covering losses to property, stock, and other assets
due to fire and related perils.
Features of Fire Insurance
∙ Contract of Indemnity: The policyholder is compensated only for the actual loss suffered, not for more
than the insured amount.
∙ Insurable Interest: The insured must have a financial interest in the property at the time of both policy
purchase and loss.
∙ Utmost Good Faith: Both the insurer and the insured must disclose all relevant facts honestly. ∙ Fire as a
Cause of Loss: Compensation is provided only if the loss is caused by fire or related events as
mentioned in the policy.
∙ Subject to Policy Terms: The claim is settled based on policy terms, exclusions, and conditions. ∙
Average Clause Application: If the insured amount is less than the actual value of the property, the
insured is liable for a proportionate part of the loss.
∙ Period of Coverage: Fire insurance is usually valid for one year and needs renewal annually.

Principles of Fire Insurance

∙ Insurable Interest: The insured must suffer financial loss if the insured property is damaged. ∙ Utmost
Good Faith: Both parties must disclose complete and accurate information. ∙ Proximate Cause: The
insurer compensates only if fire is the direct cause of loss. ∙ Indemnity: The insured is compensated
only for the actual loss suffered, up to the insured amount. ∙ Subrogation: After paying the claim, the
insurer has the right to recover from third parties responsible for the loss.
∙ Contribution: If multiple policies cover the same asset, all insurers share the compensation
proportionally.
∙ Mitigation of Loss: The insured must take reasonable steps to reduce the damage caused by fire.

Fire Insurance Claim: Fire insurance contract is the amount claimed by an insured from an insurance
company for the loss of stock destroyed by the fire in the business.
Procedure for Making a Fire Insurance Claim
∙ Immediate Notification: The insured must inform the insurance company about the fire incident as
soon as possible.
∙ Lodge an FIR: A First Information Report (FIR) must be filed with the police.
∙ Take Measures to Reduce Damage: The insured should take necessary actions to prevent further
damage.
∙ Submit Claim Form: The insured must fill out and submit a claim form, providing details of the
incident and estimated losses.
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∙ Provide Supporting Documents: Bills, invoices, stock records, and photographs of damaged property
should be submitted.
∙ Survey and Assessment: The insurance company appoints a surveyor to assess the loss and verify
claims.
∙ Approval and Settlement: After verification, the insurer approves and disburses the claim amount.

Fire Insurance Contract: A fire insurance contract is an agreement between the insurer and the insured
whereby the insurer undertakes to indemnify the insured for destruction or damage to the property caused
by fire.
Under Insurance: If the insured amount is less than the actual value of the insurable stock is called under
insurance.
Over Insurance: If the insured amount is more than the actual value of the insurable stock is called Over
stock.
Elements of Insurances
1. Insurer: the person who agrees to bear the risk of loss due to uncertain events and agrees to
compensate such losses is called insurer.
2. Insured: the person who suffered the loss and transfers it to the insurer is called the insured. 3.
Premium: the consideration (or) money for which insurer will take up the burden of loss is called
premium.
In this chapter we are discussing only Insurance claims which relating to company Stock or
Goods
Calculation of claim for loss of stock
Step: 1 Preparation of Trading Account
Dr Trading
Account (Previous Year) Cr
Particulars Amount Particulars Amount
To Opening Stock XXX By Sales XXX
To Purchases (-) Returns XXX
(-) Returns XXX By Closing Stock
To Carriage Inwards XXX
To Wages XXX
To Manufacturing XXX
Expenses (Factory
expenses) XXX
To Custom Duties
(Clearance Charges) XXX
To Coal, Gas, Water, Power XXX
& Fuel
To Gross Profit XXX XXX
(Bal. fig)
Note: 1. To find out Gross Profit.
2. When Gross Profit %age is not given.
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Step: 2 Ascertainment of Rate of Gross profit %age on Sales
Gross Profit %age = Gross Profit
Net Sales X100 {Net Sales = Sales – Returns}
Step: 3 Preparation of Memorandum Trading Account
Meaning: It is an account, which is prepared to find out the estimated stock on the date of fire accident
and it is not a part of double entry system.
(From the Current year beginning to till the date of Fire)
Dr Memorandum of Trading a/c (Current Year) Cr
Particulars Amount Particulars Amount
To Opening Stock XXX By Sales XXX
(Step 1's Closing Stock) (Up to the date of Fire)
To Purchases XXX By Closing Stock or XXX
(Up to the date of Fire) Stock on the date of Fire
To Carriage Inwards XXX (Bal., fig)
To Wages XXX
To Manufacturing Expenses XXX
(Factory expenses)
To Custom Duties XXX
(Clearance Charges) XXX
To Coal, Gas, Water, Power & XXX
Fuel To Gross Profit
(It is ascertained through Step 2) XXX XXX

Step: 4 Ascertainment of Actual amount of Loss

Particulars Amount
Stock on the date of Fire XXXX
(-) Goods saved (or) Salvaged goods (or)
Salvage (or) Scrap (XX)
(+) Expenses incurred for extinguishing fire
(or) if any XXX
Actual Amount of Loss XXXX
Salvage: It is a part of stock which is saved from fire accident (or) Realisable (Saleable) (or) Realised
values of the stock saved from fire is called Salvage or Salvage Value.
Step: 5 Ascertainment of Claim Amount
a. When the stock is properly insured or over insured.
Then the amount of claim will be the same as actual amount of loss
(Example: Policy Amount = Rs. 25,000; Stock on the date of fire = Rs.15,000 and Actual Amount of
Loss = Rs. 12,500)
(Solution: Claim Amount = 12,500)
b. When the stock is under insured.
i. If the entire stock is destroyed
Then the policy amount would be the amount of claim.
(Example: Policy Amount = Rs. 10,000; Stock on the date of fire = Rs.15,000 and Actual Amount of
Loss = Rs. 12,500. Note: entire stock has been destroyed by fire)
(Solution: Claim Amount = 10,000)
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ii. If only a portion of goods are destroyed or Insurance policy covered under AVERAGE
CLAUSE.
If the Actual Amount of loss is different from stock on the date of fire, the Amount of Claim
will be calculated by using the following formula.
Amount of Claim = Policy Amount X Acutal loss of Stock
Stock on the Date of Fire
Average Clause: It is an article included in an insurance agreement for the purpose of
discouraging under insurance of stock.
1. Find out sales when COGS is Rs. 80,000 and G/P ratio 20%.
2. Ascertain purchase when COGS is RS. 2,00,000, Opening stock Rs. 20,000 and Closing Stock Rs.
50,000
3. From the following information calculate the amount of claim by applying average clause. Loss of
stock by fire Rs. 4,00,000; Amount of Policy Rs.3,42,000; and Total value of stock destroyed by fire
Rs. 4,56,000.
4. On 15th September 2017, the premises and stock of a firm was destroyed by fire but the accounting
records were saved from which the following particulars are available.
Stock on 1.4.2016 Rs. 73,500; Stock on 31.3.2017 Rs. 81,900; Purchase for the year 2016-17 Rs.
3,98,000; Sales for the year 2016-17 Rs. 4,87,000; Purchases from 1.4.2017 to 15.9.2017 Rs. 1,62,000;
Sales from 1.4.2017 to 15.9.2017 Rs. 2,31,200. The stock salvaged was Rs. 5,300. Show the amount of
claim.
5. A fire broke out in the premises of a merchant on 31st Dec 2017. He desires to file a claim with fire
insurance company for loss of stock and gives the following information from which you are
required to prepare a statement of claim.
Final account of the merchant were prepared on 31.3.2017, Sundry creditors on 31.3.2017 were Rs.
25,000; Sundry creditors on 31.3.2017 were Rs. 20,000; Cash paid to Creditors Rs. 1,30,000; Stock on
31.3.2017 Was Rs. 15,000; Sales from 1.4.2017 to 31.12.2017 amount to Rs. 1,34,000; Normal rate of
gross profit on sales was 20% and salvage was Rs. 2,800.
6. Tom Traders have taken a fire policy of Rs. 4,80,000 covering its stock in trade. A fire occurs on
31.6.2017 and stock was destroyed with the exception of the value of Rs. 1,24,080. Following
particulars are available from the books of accounts of the firm:

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Stock on 1.4.2017 Rs. 1,80,000; Purchases to the date of fire Rs. 7,80,000; Sales to the date of fire Rs.
5,40,000; Carriage Inwards Rs. 24,000; Commission paid on purchases 2% and Rate of Gross profit
on cost 50%.
The policy was subject to average clause. You are required to calculate
(i) Total loss of stock
(ii) Amount of claim to be lodged with the insurance company.
(iii) Loss suffered due to under insurance.
7. On 1st July 2017, a fire destroyed the stock of a business firm. From the records which were saved,
the following information was obtained:
Stockon 1.4.2016 45,000 on 1.4.2017 55,000
PurchasesFor the year 2016-17 1,29,250 For 3 months
upto 1.7.2017 60,000
SalesFor year ended 31.3.2017 1,70,000 Upto the
date of fire 1,00,000
Manufacturing
For the year 2016-17 21,000
Expenses
3 months upto 1.7.2017 ?
 In May 2017, goods valued at a cost price of Rs. 500 were distributed as samples. Manufacturing
expenses were normally found to be constant per month. The salvaged stock was estimated at Rs.
7,000. Prepare a statement showing the amount of claim.
8. A large portion of the records and stock of a trading concern was lost due to a fire accident on
15.7.2017. later, goods worth Rs. 8,000 and some records were salvaged from the fire. The following
details are available from these records:
Period 2012-13 2013-14 2014-15 2015-16 2016-17 Sales (Rs.) 8,60,000 7,10,000 6,00,000
5,50,000 4,80,000 GP (Rs.) 2,15,000 2,13,000 2,00,000 1,87,000 1,60,000
On 31.3.2017, the stock was valued at Rs. 97,000. From 1.4.2017 to the date of fire, purchases, sales
and wages were Rs. 75,000; Rs. 1,59,000 and Rs. 30,000 respectively. Prepare a statement of claim
to be submitted to the insurance company.

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9. Determine the amount of claims to be lodged by Run Away Company from the following details. A
company had taken a fire insurance policy for Rs. 1,20,000 covering its stock and the policy was
subject to average clause.
1.4.2017 to
2016-17 15.6.2017
Sales 11,43,000 6,69,500
Purchases 7,89,500 3,94,000
Wages and Salaries 1,37,400 68,900
Sales Returns 54,500 15,800
Purchase Returns 27,400 9,600
Carriage Inwards 27,400 9,600
Date of fire 15.6.2017, stock on 1.4.2016 was Rs. 1,28,700; stock on 31.3.2017 was Rs. 1,89,000.
Stock salvaged Rs. 19,310, stocks had always been valued at 10%below cost.
10. On 15.9.2017 the premises and stock of a firm was destroyed but the accounting records were
saved from which the following particulars were available.
 Stock on 1.4.2016 Rs. 1,47,000; Stock on 31.3.2017 was Rs. 1,63,800; Purchases for the year 2016-17
was Rs. 7,96,000; Sales for the year 2016-17 Rs. 9,74,000; Purchases from 1.4.2017 to 15.9.2017 was
Rs. 3,24,000; Sales from 1.4.2017 to 15.9.2017 was Rs. 4,62,400.
Carriage outwards from 1.4.2017 to 15.9.2017 was Rs. 22,000. Stock salvaged was Rs. 60,600;
Amount of policy was taken for Rs. 60,000; There is an average clause in the policy. Show the
amount of claim.
11. A fire accident occurred in the shop of Colors on 15.12.2017. calculate the loss from fire and the
claim to be made to the Insurance company.
Stock on hand on 1.4.2016 Rs. 30,600; Purchases from 1.4.2016 to 31.3.2017 Rs. 1,22,000; Sales from
1.4.2016 to 31.3.2017 Rs. 1,80,000; Stock on hand on 31.3.2017 Rs. 27,000; Purchases from 1.4.2017
to 14.12.2017 Rs. 1,47,000; Sales from 1.4.2017 to 14.12.2017 Rs. 1,50,000.
Colors had always valued the stocks on hand at 90% of cost price. Goods worth Rs. 18,000 had
been salvaged from fire. He had taken out an Insurance Policy of Rs.63,000 on the goods, and this
policy contained the Average Clause.
12. The premises of Train Traders caught fire on 1.10.2017, and their stock was damaged. The stock
was fully insured. The concern has made accounts upto 31st March of each year. The following
information is available:
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Stock on 31.3.2017 Rs. 1,32,720; Stock on 31.3.2016 Rs. 96,140; Purchases from 1.4.2017 upto date of
fire Rs. 3,48,270; Purchases upto 31.3.2017 Rs. 4,52,580; Sales upto 31.3.2017 Rs. 5,20,000; Sales
from 1.4.2017 upto date of fire Rs. 4,91,700.
Further Information
a. In August 2017, goods costing Rs. 10,000 were given away for advertising purposes, no entry
being made in the books.
b. During 2017-18, a clerk had misappropriated unrecorded cash sales of Rs. 4,000.
c. The rate of Gross Profit is constant over the years.
d. Value of stock salvaged was Rs. 13,000 and the expenses incurred to extinguish fire Rs. 800.
From the above information, prepare a statement showing the claim for loss of stock.
13. On 15th April 2017, a fire occurred in the godowns of a trader and almost the entire stock, which
was fully insured, was destroyed. The salvage was taken at the agreed valuation of Rs. 7,500. From
last year’s records, the following details were obtained:
Opening stock on 1st April 2017 Rs. 1,20,000; Purchases less returns, upto 14th April 2017 Rs.
 5,10,000; Sales less returns upto 14th April 2017 Rs. 5,80,000.
Gross profit on sales during the last five years were 30%, 31%, 32%, 30% and 32%. The
salvaged stock was renovated and made fit for sale at a cost of Rs. 4,000. A part of this stock was
sold at Rs. 13,000 and the balance was valued at Rs. 2,000.
Workout the fire Insurance claim and show the Salvaged Stock Account.
14. On 20th July 2017, the godown and business premises of a merchant were affected by fire and from
accounting records salvaged, the following information is made available to you: Stock of goods at
cost on 1st April 2016 Rs. 1,00,000; Stock of goods at 10% lower than cost as on 31st March 2017 Rs.
1,08,000; Purchase of goods for the year from 1st April 2016 to 31st March 2017 Rs. 4,20,000; Sales
for the above period Rs. 6,00,000; Purchases less returns for the period from 1st April 2017 to 20th
July 2017 Rs. 1,40,000; Sales less returns for the above period Rs. 3,10,000. Sales upto 20th July,
2017 included Rs. 40,000 for which goods had not been dispatched. Purchases upto 20th July 2017
did not include Rs. 20,000 for which purchase invoices had not been received from suppliers,
though goods have been received at the godown.
Goods salvaged from the accident were worth Rs. 12,000 and these were handed over to the
insured. Ascertain the value of claim for loss of goods/stock.

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15. The following information is available from the records of Bottle Ltd., whose premises were
destroyed by fire on 31st August 2017. The salvage was Rs. 15,000.
Stock on 31st March 2017 Rs. 1,32,000; Sales during 1.4.2016 to 31.3.2017 Rs. 5,42,000; Stock on
1.4.2016 Rs. 90,000; Purchases during 1.4.2016 to 31.3.2017 Rs. 4,48,000; Returns outwards in
2016- 17 Rs. 4,000; Returns inwards in 2016-17 Rs. 42,000.
The stock on 1st April 2016 was valued at 10% below cost. The practice was changed and the stock
on 31.3.2017 was valued at 10% above cost.
After finalization of accounts for the year ended 31.3.2017, it was discovered that purchase of
furniture of Rs. 24,000 was wrongly included in the purchases given above.
The information for the period 1.4.2017 to 31.8.2017 is as follows:
Purchases Rs. 3,20,000; Returns outwards Rs. 20,000; Sales (excluding sent on approval) Rs.
4,00,000
On 31.8.2017, goods of the cost price of Rs. 40,000 were lying with customers on approval basis.
 On the date of fire the customers approved half the value of goods sent to them on approval. The
gross profit margin charged on the above is normal margin. Calculate the amount of claim to be
submitted to the insurance company.
16. A fire on October 1st 2017 destroyed the stocks of a firm. The business records were saved and
from them the following particulars were ascertained.
Stock at cost on April 1, 2016 Rs. 44,300; Stock at cost on April 1, 2017 Rs. 37,,550; Purchases for the
year to 31st March 2017 Rs. 1,03,850; Sales for the year to 31st March 2017 Rs. 1,52,500; Purchases
from April 1, 2017 to September 30, 2017 Rs. 37,350; Sales from April 1, 2017 to September 30, 2017
Rs. 59,000.
In valuing the stock on 31.3.2017 Rs. 800 had been written off a particular line of goods which had
originally cost Rs. 1,800 and which were sold in June 2017 for Rs. 1,750. Except as regards this
transaction the ratio of gross profit had remained unchanged throughout. The value of stock
salvaged from the fire was Rs. 5,105. You are required to calculate the amount of claim to be
presented to the insurance company in respect of the loss of stock.
Multiple Choice Questions
What is the primary purpose of fire insurance?
A) To provide compensation for any type of damage
B) To protect businesses from burglary losses
C) To indemnify the insured for losses caused by fire
D) To compensate for natural disasters
Which of the following is NOT a feature of fire insurance?
A) Contract of Indemnity B) Insurable Interest
C) Unlimited Compensation D) Utmost Good Faith
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In fire insurance, what is the insured required to have at both the time of policy purchase and loss?
A) A valid license B) Insurable Interest
C) A bank guarantee D) Government approval
Which principle states that the insurer can recover the claim amount from third parties responsible
for the loss?
A) Indemnity B) Subrogation
C) Contribution D) Utmost Good Faith
What is the period of coverage for a standard fire insurance policy?
A) Six months B) One year
C) Five years D) Until the property is sold
What is the first step in making a fire insurance claim?
A) Submitting a claim form B) Immediate notification to the insurer C) Conducting
a fire drill D) Hiring a private investigator
The process of preparing a Memorandum Trading Account is used to determine: A) The
cost of production B) The estimated stock on the date of fire C) The premium amount for
fire insurance D) The selling price of damaged goods
The average clause applies when:
A) The insured has multiple fire insurance policies
B) The insured amount is less than the actual value of stock
C) The policyholder fails to pay the premium
D) The insurer refuses to settle a claim
Under which principle does the insured have to take reasonable steps to minimize the damage?
A) Contribution B) Indemnity C) Mitigation of Loss D) Proximate Cause
If an insured amount is more than the actual value of the property, it is known as: A) Under
Insurance B) Over Insurance C) Salvage D) Fire Excess
If the insured amount is less than the actual value of the property, it is called: A) Over Insurance B)
Full Coverage C) Under Insurance D) Partial Insurance
Which of the following is NOT an element of insurance?
A) Insurer B) Insured C) Premium D) Guarantee Amount
Salvage refers to:
A) The amount deducted from a fire insurance claim
B) Stock that is completely destroyed by fire
C) The remaining stock that can still be used or sold after a fire
D) A policy that covers multiple risks
The Gross Profit Percentage is calculated using which formula?
A) (Net Sales / Gross Profit) × 100
B) (Gross Profit / Net Sales) × 100
C) (Opening Stock / Closing Stock) × 100
D) (Net Profit / Gross Profit) × 100

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What is the primary role of an insurance surveyor?
A) To investigate the cause of fire B) To negotiate premium rates C) To assess
the loss and verify claims D) To sell insurance policies
If the entire stock is destroyed and the policy amount is less than the stock value, the claim amount
will be:
A) Equal to the stock value B) Equal to the policy amount
C) Half of the stock value D) Zero
Which of the following is NOT considered while calculating a fire insurance claim?
A) Stock on the date of fire B) Salvage value
C) Gross Profit Percentage D) Number of employees in the company
The claim amount in case of under-insurance is determined using which
formula? A) (Policy Amount × Actual Loss) / Stock on the Date of Fire
B) (Stock on the Date of Fire × Policy Amount) / Actual Loss
C) (Actual Loss × Net Profit) / Gross Profit
D) (Policy Amount × Salvage Value) / Net Sales
What does the insurer pay in a fire insurance contract?
A) The market value of the stock B) The estimated profit of the business C) The actual loss
suffered, subject to policy limits D) Double the loss amount
Two Mark Questions
1. State the different parties for an insurance policy.
2. Who is an insurer?
3. Who is an insured?
4. What is average clause?
5. How do you calculate Gross Profit Ratio?
6. What is under insurance?
7. What is over insurance?
8. What is fire insurance claim?
9. What do you mean by salvage?
10. What is memorandum of trading account?
Case Study
The Case of the Burning Lies: Sreedevi Cold Storage vs. United India Insurance
Chapter 1: A Cold Storage Goes Up in Flames
It was a chilly January morning in 2014 when a frantic call was made to the fire department in
Andhra Pradesh. Flames had engulfed Sreedevi Cold Storage, a well-known facility storing
perishable goods. The fire was spreading rapidly, devouring stacks of stored vegetables and
grains. Workers at the facility stood helpless as the fire raged on, destroying everything in its path.
As firefighters doused the flames and surveyed the damage, the owner of Sreedevi Cold Storage,
Mr. Ravi Kumar, sighed in despair. He knew he had suffered a massive loss—millions worth of
stored goods had turned to ashes. But there was a silver lining: the cold storage was insured.
Chapter 2: The Insurance Claim
Just days after the fire, Sreedevi Cold Storage submitted a fire insurance claim to United India
Insurance Co. Ltd., requesting compensation for their lost stock and property damage. The claim
was substantial—running into several crores. United India Insurance immediately appointed a
survey team to assess the loss. The company was obligated to process legitimate claims, but
something
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about this case seemed too convenient. Why had the fire spread so aggressively in a facility
designed to keep products cool? Was there more to this fire than met the eye?
Chapter 3: The Investigation Begins
A forensic investigation team was brought in from Truth Labs, Hyderabad, an independent forensic
agency. Their job was to determine how the fire started. Within days, the forensic team uncovered a
shocking red flag—the presence of fire accelerants, such as kerosene, in various parts of the storage
unit. Kerosene is highly flammable and not typically found in cold storage facilities. Further
investigation into CCTV footage and witness statements raised even more suspicions. Employees
reported being sent home earlier than usual the night before the fire, which was an unusual
practice. Some workers also recalled seeing large drums of liquid being moved into the
facility—drums that later turned out to be filled with kerosene. The evidence pointed to one
possibility that the fire had been deliberately set.
Chapter 4: The Insurance Company Strikes Back
With this damning evidence in hand, United India Insurance Co. Ltd. rejected the fire claim. The
company argued that:
∙ The fire was not accidental but rather a planned arson.
∙ The presence of kerosene indicated a deliberate act to maximize the insurance claim. ∙ The
storage owner failed to disclose crucial information about hazardous materials being stored
inside the premises.
Sreedevi Cold Storage vehemently denied the allegations, insisting that the fire was accidental and
that they had suffered genuine losses. Furious over the claim rejection, they filed a case against
United India Insurance in court, seeking compensation.
Chapter 5: The Courtroom Showdown
The case reached the consumer court, where both sides presented their arguments. ∙ Sreedevi Cold
Storage argued that the insurance company was unfairly denying a valid claim, causing them
financial distress.
∙ United India Insurance, on the other hand, presented forensic reports, surveyor findings, and
witness testimonies proving that the fire was staged.
The court examined all the evidence and ruled in favor of United India Insurance Co. Ltd., stating
that the fire was intentionally set to claim insurance money. As a result, the claim was dismissed,
and Sreedevi Cold Storage was left with nothing.
Chapter 6: The Fallout
The ruling set a precedent for fraudulent fire insurance claims in India. The case served as a
warning to businesses that insurance fraud is a serious offense that could lead to legal
repercussions. Sreedevi Cold Storage not only lost its claim but also suffered reputation damage.
On the other hand, United India Insurance’s vigilant investigation ensured that fraudulent claims did
not go unchecked, saving them from paying out crores in false compensation.
Questions for discussion:
1. What were the key pieces of evidence that led to the court ruling in favor of United India
Insurance?
2. How did the actions of Sreedevi Cold Storage’s management before the fire raise suspicions
of fraud?
3. In cases where forensic evidence suggests possible fraud but is not 100% conclusive, should
insurance companies still reject claims? What factors should courts consider before ruling in
favor of an insurer?
4. If Sreedevi Cold Storage had multiple insurance policies from different insurers, how would
the "Principle of Contribution" apply in this case? Would multiple insurers share the
responsibility if the claim was legitimate?
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