This question concerns the principle of 'proximate cause' in insurance law, specifically within fire insurance.
Understanding Proximate Cause in Fire Insurance
The 'proximate cause' is the primary or dominant cause of an event or loss. In insurance, a claim is typically payable only if the loss is directly caused by a peril insured against. If an insured peril (like fire) merely creates a condition that allows a subsequent, non-insured peril (like a windstorm) to cause damage, the insurance company may deny the claim.
Analyzing the Scenario
- Initial Event: Fire at 'X' house damages neighbour 'Y's' wall.
- Condition Created: The wall is left in a 'dangerous state' (weakened) by the fire.
- Intervening Event: A windstorm occurs.
- Final Loss: The windstorm causes the weakened wall to fall, damaging 'Y's' property.
Determining Cause of Loss
The damage to 'Y's' property resulted directly from the wall falling. The immediate and effective cause of the wall's fall was the windstorm. While the fire weakened the wall, it did not directly cause the collapse. The windstorm acted as an independent and intervening cause.
Fire insurance covers losses directly resulting from fire. In this case, the loss is a consequence of the windstorm acting upon a condition created by the fire. The windstorm is considered the proximate cause of the collapse and subsequent damage, not the fire itself. Therefore, the loss is not proximately caused by the fire.
Conclusion on Claim Entitlement
Since the proximate cause of the damage (the wall falling) was the windstorm, which is typically not covered under a standard fire insurance policy, 'Y' is not entitled to claim compensation from the insurance company based on the fire insurance policy.
Evaluating the Options
- Option 1: States 'Y' is not entitled because fire lacks proximity to the cause of loss. This aligns with the proximate cause principle where the windstorm is the dominant cause.
- Option 2: Incorrectly claims entitlement due to proximity to fire, ignoring the intervening windstorm.
- Option 3: While 'X' might be liable for negligence, this option incorrectly assumes entitlement from both 'X' and the insurance company for the fire policy based on the circumstances. The insurance claim's validity depends on proximate cause.
- Option 4: Logically flawed; suggests a joint claim which is not how insurance or liability works in this scenario.
Similar Questions
- Match List - I with List - II.
List - I List - II A. Yellow Pages I. Promotion of a product/brand in a movie in such a way to enter the subconscious mind of the customer B. Infomercials II. Banners, posters and stickers put inside the retail shop C. Point of purchase advertising III. Television commercial runs as typical as television program D. Product Placement IV. Directory of Local business names and products
Choose the correct answer from the options given below : - The revenue function of a firm is given as
$$R = 300000 + 2250x - 75x^2$$
Where R is the revenue and $x$ is the quantity sold.
The revenue maximizing level of quantity sold is - The effective rate, $r_e$ equivalent to the nominal rate r converted m times a year is given by :
- Which of the following are the methods for finding an Initial feasible solution for a Transportation problem ?
A. Stepping Stone Method
B. Vogel's Approximation Method
C. The North West Corner Rule
D. Lowest Cost Entry Method
E. Modified Distribution (MODI) Method
Choose the correct answer from the options given below : - Match List - I with List - II.
List - I List - II A. Matrix addition is commutative I. If O is the zero matrix of same order as that of the matrix A, then A + 0 = A = 0 + A B. Matrix addition is associative II. If A, B and C be three matrices of the same order, then (A + B) + C = A + (B + C) C. Existence of additive identity III. If A be any matrix, then A + (-A) = O = (-A) + A D. Existence of additive inverse IV. If A and B be two matrices of the same order then A + B = B + A
Choose the correct answer from the options given below : - "A" bought two life insurance policies, one from XYZ company and second from WXY company of a sum of ₹ 20,00,000 and ₹ 30,00,000. He met an accident and admitted to hospital and unfortunately dies. The legal representatives of the insured are entitled to get :
- If an assessee incurs any loss under the head "Income from House Property" and such loss is not fully adjusted under other heads of income in the same assessment year, then the balance loss shall be allowed to be carried forward and set off against "Income from House Property" in subsequent years subjects to a limit of :
- A firm of Chartered Accountants which satisfies all conditions of sections 184 and 40(b) for the Assessement year 2025-26, has paid remuneration to partners amounting to ₹ 2,75,000. The book profit of the firm is ₹ 41,050. The firm can claim deduction for remuneration paid to partners of :
- Arrange the following steps of computation of Income from House Property in Correct order :
A. Deductions under section 24 of Income Tax Act
B. Computations of Net Annual Value
C. Deduction of Municipal Taxes paid
D. Computation of Gross Annual Value
E. Computation of Expected Rent
Choose the correct answer from the options given below : - Arrange the following items in ascendig order of the Sections of Income Tax Act related to Deductions from Gross Total Income :
A. Deduction in respect of interest on deposits in savings accounts to the maximum extent of ₹ 10,000
B. Deduction for interest paid on loan taken for pursuing higher education
C. Deduction in respect of royalty income etc; of authors of certain books other than text books
D. Deduction in respect of contribution to Agnipath Scheme
E. Deduction in respect of donations to certain funds, charitable institutions etc.
Choose the correct answer from the options given below :
Important Questions from Miscellaneous
- Which of the following scheduler/schedulers is/are also called CPU scheduler ?
(A). Short Term Scheduler
(B). Long Term Scheduler
(C). Medium Term Scheduler
(D). Asymmetric Scheduler
Choose the correct answer from the options given below: - A situation where two or more processes are blocked, waiting for resources held by each other is called:
- External fragmentation occurs ________.
- Which disk scheduling algorithm looks for the track closest to the current head position?
- Which CPU scheduling algorithm prefers the process with the shortest burst time?
