IIQE Paper 1 Principles of Insurance question: personal accident policy excludes injury directly or indirectly caused by riot

IIQE Paper 1Principles of Insurance

A personal accident policy excludes injury 'directly or indirectly caused by' riot. Hurrying home along a dark back lane because a riot has closed his usual route, the insured trips on a kerb and breaks a leg. The claim is most likely:

A covered, as riot was not the last cause
B covered, as the fall was the proximate cause
C excluded, as riot contributed even indirectly
D covered, as 'indirectly' adds nothing to 'directly'

Show the answer and explanation

Answer: C. excluded, as riot contributed even indirectly

Answer: excluded, as riot contributed even indirectly. The riot is what put him on the dark lane, so it is a remote contributory cause of the injury. An exclusion of loss 'directly or indirectly' caused by an excepted peril has been held to apply even where that peril was only a remote contributory factor, as in the decided case of an officer killed by a train in wartime.Why not the others:• covered, as riot was not the last cause: being last in time is not the test under this wording.• covered, as the fall was the proximate cause: the wording excludes losses where riot was only a remote contributory factor.• covered, as 'indirectly' adds nothing to 'directly': 'directly' alone adds nothing, but 'directly or indirectly' widens the exclusion.Watch out: Applying the normal proximate cause test to 'directly or indirectly' wording.Rule: 'Directly or indirectly' exclusions catch remote as well as proximate causes.Source: IA P1 Study Notes, 2024 Edition (8th ed., Nov 2024; for exams from 17 Feb 2025), 3.3.4, p. 3/9

Common mistake

Applying the normal proximate cause test to 'directly or indirectly' wording.

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Related IIQE Paper 1 questions

An insurer finds that Mr Kan deliberately hid two earlier fire claims when proposing. It avoids the policy within a reasonable time. The premiums he paid are Export cargo waiting at a container depot is damaged by fire: the loss is HK$500,000. The marine policy pays HK$400,000, its limit. A fire policy extended to the depot has the standard Marine Clause. The fire policy Mr Tse is selling his insured car to Ms Yip. Which arrangement for assigning the motor policy to her meets the insurable interest requirement?

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Original study material written to the public IIQE Paper 1 syllabus. Independent, not endorsed by the Insurance Authority or the VTC. Verify figures and rules against current guidance before relying on them.

IIQE Paper 1 Principles of Insurance question: personal accident policy excludes injury directly or indirectly caused by riot

IIQE Paper 1Principles of Insurance

A covered, as riot was not the last cause
B covered, as the fall was the proximate cause
C excluded, as riot contributed even indirectly
D covered, as 'indirectly' adds nothing to 'directly'

Show the answer and explanation

Answer: C. excluded, as riot contributed even indirectly

Common mistake

Applying the normal proximate cause test to 'directly or indirectly' wording.

Practise more IIQE Paper 1 Principles of Insurance questions

Exam-style questions with worked answers, then full timed mocks. Free to start.

Start practising →

Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.

Start practising →