Aziza and Qais, a young married couple, jointly purchased a house for OMR 450,000. They met Mr. Williams at United Insurance Co. and Mr. Robert at Universal Insurance. They submitted applications for Fire Insurance to protect their property. With Global insurance they have taken insurance for OMR 450,000 by paying OMR 750 and with Universal insurance also they have paid OMR 350 and taken an insurance coverage for OMR 250, 000. A document was issued setting out all the terms and agreement from both the companies separately.

After a year, fire caused damage to the property due to the negligence of a neighbour. Aziza and Qais filed a case against neighbour demanding a compensation of OMR 200,000. They also filed a note for their loss (cost of damage) amounting to OMR 200,000 from Global Insurance Co. Ltd.

1. Can Aziza and Qais claim from Both Insurance Co? Justify your answer and provide underlying principle(s) of insurance involved.

2. Identify what are the following and briefly describe the insurance terms involved: 

Parties/Items	Insurance Term	Brief explanation about the insurance term
1. RO 200,000
2. RO 450,000

3. Is it possible to make a claim against the neighbour after making settlement with Insurance Company? Comment about the situation in the above case. Justify.

Answer rating: 100% (QA)

1 Aziza and Qais can claim from both Insurance companies However the Insurance companies will need t... View the full answer