A logistic company took an accident insurance policy for all its vehicles. A truck that was carrying oranges from Nagpur to Mumbai met with an accident. Due to the accident, there was no damage to the oranges were unloaded from that truck and it was reloaded to another. Due to time wastage in unloading and reloading, the oranges got spoiled. Which principle is related to this case?

Principle of Utmost Good Faith

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Principle of Subrogation

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Principle of Indemnity

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Principle of Causa Proxima

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Solution

The correct option is D
Principle of Causa Proxima

The principle of Causa Proxima. The principle states that to find out whether the insurer is liable for the loss or not, the proximate (closest) and not the remote (farest) must be looked into.

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