The cause of loss must be direct and an insured one in order to claim compensation. Which principle of…
Causa proxima is the principle of proximate cause: liability depends on the effective cause of the loss being an insured peril. Indemnity concerns compensation for loss,…
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The cause of loss must be direct and an insured one in order to claim compensation. Which principle of insurance means the above?
Answer and explanation
Correct answer C
Causa proxima is the principle of proximate cause: liability depends on the effective cause of the loss being an insured peril. Indemnity concerns compensation for loss, while subrogation concerns the insurer acquiring recovery rights after payment.
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Maharashtra and Goa SET (MH SET)