The code that is applied is the decision of the inspector of the installation as they have the awareness to be able to assess the level of risk caused by the observation.
In the case of the failed conduit a fault from line to the conduit would result in the conduit becoming live, possibly over a large area of the installation.
In the case of a cable installed in an insulating medium this hazard does not arise and so the risk is negligible.
In the case of a normal domestic installation (if such a thing exists) cables are often buried in plaster that, if wet, could provide a potentially partially conductive path, however the likelihood of it being wet may be very low, and so on. All these aspects should be taken into account to adequately assess the level of risk, this can often be done with minimal assessment based on previous experience, occasionally things catch you out.