Question

A fire was set at 'X' house and left a wall of his neighbour 'Y' in a dangerous state. After a few days, a windstorm came and caused the wall to fall and damage Y's property covered under fire insurance. Choose the correct answer:

• A. 'Y' is not entitled to claim the compensation from insurance company as fire has no proximity with cause of loss.
• B. 'Y' is entitled to claim the compensation from insurance company as the loss is caused due to proximity of fire.
• C. 'Y' can claim the compensation both from 'X' and insurance company.
• D. 'Y' will ask X that both of them can sue the insurance company and get insurance claim.

Hint:

Logic Tip: Insurance liability depends on proximate cause — the dominant effective cause of loss.

Answer 1

The Correct Option is A