A top equestrian, Sundar Raj, insured his prize show horse, Karishma, for ₹ 2.5 lakh. After a series of lack lustre performances, Karishma died suddenly from what appeared to be colic, a common killer disease of horses.

A top equestrian, Sundar Raj, insured his prize show horse, Karishma, for ₹ 2.5 lakh. After a series of lack lustre performances, Karishma died suddenly from what appeared to be colic, a common killer disease of horses. However, the underwriters settled the claim of ₹ 2.5 lakh although many observers felt that the settlement was more than the horse was worth alive due to its poor performance just prior to its death. During the same time, the Fraud Investigation Department of the Insurance Company was involved in an investigation regarding horse killings and related insurance fraud. They arrested one Salim, who said that he was paid to kill horses so that their owners could collect any insurance proceeds. Further, Salim also revealed the names of his clients wherein Sundar Raj was also mentioned. During the trial, the owner testified that Karishma had not died of a natural cause, but instead died of electrocution which can be easily disguised as colic. From the information provided, answer briefly, the following questions: (iv) Identify the damage compensation liability of the owner.