Using the IRAC rule law Essay Example | Topics and Well Written Essays - 1250 words

Using the IRAC rule law - Essay Example Using the IRAC rule law People always assume that riots and vandalism are not liable for compensation by insurance and the police are also not liable. However, According to commercial property coverage guide a riot is â€Å"any disturbances of the public’s peace by more than three people helping each other execute destruction of property and people by use of force and aggression in an unlawful manner†. According to this rule of law it seems the peoples assumptions are wrong yet the law states otherwise. The confusion here is that for the state to be liable for compensating Eric it must be first be investigated to find out the cause and intention. This is because for the state to compensate Eric, the law states that â€Å"the loss of his pharmacy must be accidental as intentional damages and loss and criminals acts are not liable for compensation†. According to Erick’s case, the people who looted, vandalized and burnt his pharmacy do not know him personally to be doing the damage intentionally nor are they doing it to cause damage for him. Secondly, the looting and vandalism was not done by Erick himself but a rowdy group thus the insurance is liable for compensation. The state is liable for compensation in Erick’s case since the police stood by and did not prevent the rioters from vandalizing and burning his pharmacy. Therefore, Erick must be compensated for losses incurred in his shop. Eric’s pharmacy company VCS was to be delivered pharmaceuticals by Tanya who owns a pharmaceutical delivery business.