MANAGEMENT

Detailed explanation-1: -The principle of proximate cause is the cause that is primary to the occurred event. It could also be the most significant incident which cascades into the loss event. The insurer will entertain the claim only if this significant cause is close enough to the loss.

Detailed explanation-2: -The Principle of Proximate Cause If the proximate cause is one in which the property is insured against, then the insurer must pay compensation. If it is not a cause the property is insured against, then the insurer doesn’t have to pay.

Detailed explanation-3: -It means that if the proximate cause of the loss is insured then the insurer is liable to pay the compensation to the insured. This article was all about the topic of the Principle of Causa Proxima, which is an important topic in Business Studies for Commerce students.

Detailed explanation-4: -Proximate cause is the cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss.