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WAEC Commerce 2015 Question 32

Question 32

Insurance

A house insured against damage by floods was burnt down and the owner had no claim. Which of the following principles prevented him from making a claim?

  1. A.Indemnity
  2. B.Contribution
  3. C.Insurable interest
  4. D.Proximate cause.
Show the answer and explanation

Answer: D (Proximate cause.)

Explanation

Under proximate cause, the insurer pays only if the main cause of loss is the risk insured; fire was not covered.