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Moot

XYZ cannot void the contract based solely on suspicion, as they had the option to investigate further under Section 19 but chose not to. The insurer's claim of fraud after discovering unpaid loans post-fire is invalid since they failed to exercise ordinary diligence at the time of the contract. If misrepresentation occurred, the court could order partial compensation instead of total rejection, providing a fair resolution.

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Krish
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18 views1 page

Moot

XYZ cannot void the contract based solely on suspicion, as they had the option to investigate further under Section 19 but chose not to. The insurer's claim of fraud after discovering unpaid loans post-fire is invalid since they failed to exercise ordinary diligence at the time of the contract. If misrepresentation occurred, the court could order partial compensation instead of total rejection, providing a fair resolution.

Uploaded by

Krish
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd
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xyz cant void the contract based on sus alone.

under sec 19, xyz had a choice to honor the contract or investigate further
(financial records) but chose to completely avoid it.

now yes he was reeling under 5 crores in unpaid loans but that was only uncovered
by xyz after the fire and they're using that as an excuse to deny the claim.

invokes exception under sec 19, where if insurer could have discovered truth with
"ordinary diligence" but failed to do so, they just cant claim fraud after the fire
using that newly uncovered piece of info. theyre ignoring available info at the
time of the contract and using it as an excuse to escape liab.

was he ever asked about his finances during the policy application process?

if XYZ Insurance didn’t explicitly ask about financial distress before hand, then
how can they claim it was concealed?

...

if there was misrepresentation, the court could order partial compensation rather
than total rejection. it would be a fair solution in case of any doubt.

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