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 compensation
• B. 'Y' is entitled to claim compensation
• C. 'Y' can claim compensation partially
• D. 'Y' will ask X to pay compensation only

Hint:

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

Answer 1

The Correct Option is B

Step 1:
In insurance, the nearest and effective cause of loss is considered.

Step 2:

• Fire weakened the wall
• Windstorm caused wall collapse The original effective cause remains the fire.

Step 3:
Since fire was the proximate cause connected with the damage, insurance company remains liable.

Step 4:
Hence, Y is entitled to claim compensation. \[ \boxed{\text{(2)}} \]