Multiple choice

Which of the following is applicable when the loss is the result of two or more causes?

  1. Double insurance

  2. Principle of proximity cause

  3. Principle of subrogation

  4. Principle of indemnity

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Proximate cause literally means the ‘nearest cause’ or ‘direct cause’. This principle is applicable when the loss is the result of two or more causes. The proximate cause means the most dominant and effective cause of loss is considered. This principle is applicable when there are series of causes of damage or loss.