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Umar instructed Khalid to take out an insurance policy on his Toyota car from Allied Insurance Pvt. Ltd. Umar informed Khalid that the car had recently been involved in an accident that had resulted in slight damage to its mud guard, and he had replaced the damaged parts. Khalid, however, did not inform the insurance company when he obtained the insurance for the vehicle. Three months after obtaining the insurance, the car met with an accident that caused huge damage to the car chassis. Umar made a claim for the cost of repair. The insurance company refused to settle the payment.
Advise Umar, citing relevant laws and cases, regarding this situation.
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