JAMB - Commerce (2021 - No. 28)
| 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
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.
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