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

A. indemnity
B. contribution
C. insurable interest
D. proximate cause

Correct Answer: Option D

D. proximate cause

Explanation

Proximate cause is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril. Active, direct, and efficient cause of loss in insurance that sets in motion an unbroken chain of events which bring about damage, destruction, or injury without the intervention of a new and independent force.