nedding Heading Title ont Paragraph Styles Question No 1: Mr Ahmed constructed a building with 5 shops with an estimated cost of RO 15,000 in the year 2011. He made interior decoration with an additional cost of RO 5,000. He was having his own mobile business in that shop till June 2014 after which he moved to another city as the business was very poor at that place. On 1 January 2014 he took a shop insurance for RO 10,000 with a separate policy to cover products inside the shop for which he paid a premium of RO 100. On 1* August 2015 he let out the shop for a rent of RO 150 to Mr. Adil who started a bakery. In December 2015, the shop got fire and got damaged. Mr Ahmed filed a claim to the insurance company for RO 7,500. The insurance company made an investigation and came to know that the transfer of shop to another person was not disclosed to the company. As the shop was used for bakery the fire in the oven was the main reason for fire accident. Mr.Adil did not take separate insurance policy as Mr Ahmed informed him about the insurance for the shop and the rent is inclusive of insurance. Mr.Adil made a claim to Mr.Ahmed regarding the damages to the bakery items to the tune of RO 2,000 a. Can you apply all the principles of insurance in the above case? Support your answer with suitable principles of insurance that can be applied to the above case (2Marks) b. How much claim should the insurance company accept in the above case. Support your answer with suitable examples. (2 Marks) Is Mr. Ahmed liable to Mr Adil? Did the insurance company made any mistakes during proposal or the insured made any mistake during the proposal. Discuss. (2Marks) D LIMITED STATES