Question

Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R)
Assertion (A): The general rule of 'Caveat emptor' does not apply to insurance contracts.
Reason (R): The insurance is liable only for those losses which have been proximately caused by the peril insured against.
In the light of the above statements, choose the correct answer from the options given below:

• A. Both (A) and (R) are true and (R) is the correct explanation of (A)
• B. Both (A) and (R) are true but (R) is NOT the correct explanation of (A)
• C. (A) is true but (R) is false
• D. (A) is false but (R) is true

Answer 1

Answer: (B)

Both (A) and (R) are true but (R) is NOT the correct explanation of (A)

Answer 2

The correct option is (B):Both (A) and (R) are true but (R) is NOT the correct explanation of (A)