Page 10 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

Proximate cause produces particular,
foreseeable consequences without the
intervention of any independent or
unforeseeable cause. It is the 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.
It is also called legal or direct cause.

Q3. Write sort notes on:

(A) Utmost good faith - In insurance contracts, the legal
doctrine of utmost good faith applies. The insured has
the duty to disclose all material facts, which have a
bearing on the insurance. A breach of this duty may
make the contract void or voidable.

The duty of disclosure continues throughout the policy
period. The fire proposal form also includes a declaration
by the insured saying that the statements declared by
him are true, and that they can form the basis of the
insurance contract. This principles also expect the

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