Question

T was insured under an individual disability income policy and was severely burned in a fire. as a result, t became totally disabled. the insurer began making monthly benefit payments, but later discovered that the fire was set by t in what was described as arson. what actions will the insurer take?

Answer 1

In such a scenario the insurer should cancel or repeal the policy by T, deny the claim by the insured and recover all the payments he had made. This is because the cause of fire was not accidental but instead was caused by the insured in order to receive compensation. This is because, for a compensation or a policy to be valid it has to be accidental and not castigated by an individual in order to seek or claim compensation from the insurer.