cit., p. 75. A man scratches his leg falling from a ladder. It mainly revolves around the claim administration and, more precisely, diagnosing the role of the peril in a claim. The proximate cause of his death is cholera and not falling from the ladder, or for that matter scratches on his leg, even though it can be wrongly argued that has he not had scratches on his leg he would not have gone to hospital and contacted cholera as such. Learn more about our insurance plans: CriticalCare 1.0 MediSure Plus HospitalCare Recently, a small restaurant was vandalized. By Larry Bache on February 28, 2013. Proximate cause, or the Latin Causa Proxima, relates to the cause of the loss in that the event of the peril insured against must be covered under the insurance contract (policy), and the dominant cause of the event must not be excluded. This can be a little confusing, so an example might help. 2.1 Proximate cause 14 2.1.1 The common sense approach 16 2.1.2 Contractual freedom 17 2.2 Concurrent Proximate causes 17 2.2.1 One included loss and one not expressly excluded 18 2.2.2 One included loss and one expressly excluded loss 19 2.2.3 More than two proximate causes 20 2.3 Succession of proximate causes 20 2.4 Paramount clauses 21 2.5 Exceptions provided by the Act 21 … In insurance cases the policy enumerates and thus highlights the possible causes to which attention should be given. Proximate Cause - The Wayne Tank Principle and The Three Little Pigs You may have recently seen in the papers that building in Lidcombe where the roof blew off in January and the owners found themselves in the situation with a strata policy which covers storm damage but excludes poor design and construction. proximate cause definition: something that is considered to be the direct cause of damage, loss, or injury: . Controversy exists as to where liability should be extended to a defendant, based on their responsibility or duty. Let us take another example. The important point to consider here is that proximate cause is the only nearest cause and not the remote cause. Other issues arise deeper within proximate cause, and that is with the scope of liability and its extent. 7 Sebo v. American Home Assurance Company, Inc. 208 So. Posted in Insurance. 3d 694 (Fla 2016) at 698. The proximate cause is essentially that initial event that triggered the claim and need not be the event that immediately preceded the loss. Proximate cause is not confined to insurance law but is important to most branches of law and. proximate cause. According to the law of marine insurance, only the last cause needs to be looked into and others neglected even though the result might have not occurred without them. This means understanding if the injury would occur but for the action or lapse of the defendant. Learn more. The doctrine is considered “friendly” to insureds because it sometimes creates coverage for a loss caused in part by an excluded peril, where that excluded cause of loss was itself set in motion by a covered cause of loss. Proximate cause. at 700. proximate cause meaning: something that is considered to be the direct cause of damage, loss, or injury: . 2, page 3. If the cause is an insured one, the claim is payable, if the cause is uninsured or excepted the claim is not payable. Proximate cause relates to the relationship between an event and an injury. Learn more. This may not be a “principle” of marine insurance but section 55 (1) of the U.K. Marine Insurance Act 1906 elevates it to a condition which must be fulfilled before the underwriter becomes As recently noted … Beyond this contract, there are a number of accepted principles and practices that determine how the insurer should respond to the insured and vice versa. Should an insurance claim go to court, there is a strict process and shifting burden of proof when damage occurs at an insured property. The fact that one of these circumstances was abnormal or special does not necessarily deprive the master's act of the title of proximate cause: see Hart and Honored op. Unforeseeable Consequences . A similar view was expressed in Incorporated General Insurances Ltd v Shooter 1987(1) SA842(A) at 862D: “No difficulty arises when only one cause has to be considered. 8 Id. proximate cause is covered depends upon the application of the terms of the policy to the fact pattern, a legal question for a court to decide. The proximate cause is not necessarily the first cause, nor the last cause; it is the dominant, efficient or operative cause. Proximate Cause 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. proximate cause is no longer directed to the cause proximate in time, but is to be€taken as referring to the dominant or effective cause even though it is not nearest in€time. These days, most insurance claims are resolved without having to go to court. Determining Proximate Cause Through Different Rules. As the proximate cause of the second operation was related to the first operation and the first operation was excluded from Ms. Ho's medical policy, her insurance company was not liable for Ms. Ho's hospitalisation claim. Beale, 33 Harv.L.R. California Courts have interpreted California Insurance Code sections 530 and 532 to codify the efficient proximate cause doctrine. Proximate Cause is an important principle of insurance, which helps in deciding how the loss or damage happen and whether it is the result of an insured peril or not. Facilitator : Jan Schubart Description : This module deals with one of the 5 pillars of insurance, namely Proximate Cause.Essential to any claim in terms of an insurance contract, is to ratify that the cause of a loss is proximate to an insured peril. There might be multiple causes for the delay but the aptest cause must be looked into. 633, 643. The Burden of Proof in an Insurance Claim. After initially appearing to be covered the claim was later denied. In Washington, a judicial doctrine called the “efficient proximate cause” rule may apply and affect insurance coverage when multiple events combine to cause a loss. ‘Proximate cause’ a source of conflict for ‘all risk’ policies- State and federal cases applying Illinois law conflict on whether proximate cause can be considered in deciding what caused a loss for purposes of all risk property insurance policies. Failure by the insurer as to its tasks means that the insurer has not carried its burden, and therefore the insured is entitled to coverage under the policy. According to this case, proximate cause is the effective efficient cause that sets in motion a train of events which brings about a result, without the intervention of any force started and working actively from a new independent source”. Proximate cause has been defined in a well known case of Pawsey Vs Scottish Union and National Insurance Company. Proximate Cause in Marine Insurance and Onus of Proof Published on February 5, 2018 February 5, 2018 • 56 Likes • 0 Comments n. a happening which results in an event, particularly injury due to negligence or an intentional wrongful act. Notably, proximate cause in the marine insurance law is the dominant cause of the damage. In practice it is very important to study the policy wording to assess its impact on the concept of proximate cause. No insurance claim can succeed unless the loss is proximately caused by a peril insured against. Insurance Glossary Defines: Proximate Cause — (1) The cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. But besides the common law doctrine of proximate cause policy wordings generally also convey the idea of causation. Proximate cause is used in civil and criminal cases, and are frequent in personal injury legal cases. The Rules For Application Of Proximate Cause In Insurance are as follows: Single Cause: When a single cause gives rise to a claim, the issue is simple. Along with these two issues, there are several more controversial ones that exist within the realms of proximate cause. Proximate cause means the active, efficient cause that sets in motion a chain of events which brings about a result, without the intervention of any force started and working actively from a new and independent source. Home Insurance Efficient Proximate Cause: There May Be Coverage For An Excluded Cause of Loss Efficient Proximate Cause: There May Be Coverage For An Excluded Cause of Loss . The difficulty arises when there are two or more possible causes. It was decided by per Bingham L J in T M Noten BV v Harding that the proximate cause of the damage is determined by the application of common sense od a business. Proximate cause is an act, whether intentional or negligent, that is determined to have caused someone else’s damages, injury, or suffering. It is important that courts establish proximate cause in personal injury cases because not everyone nor everything that causes an injury can be held legally liable. Certain states take into consideration the “but for” rule for proximate cause. The proximate cause rule applies here. 36 No. Proximate Cause and "Cause-In-Fact" First, it's important to note that a traffic accident may have both a proximate cause and a "cause-in-fact" component, and these are not always one and the same. “A proximate cause is not the first, or the last or the sole cause of the loss: it is the dominant or effective or operative cause”. 6 Michael C. Phillips and Lisa L. Coplen, Concurrent Causation Versus Efficient Proximate Cause in First Party Insurance Coverage Analysis, The Brief – Tort & Trial Insurance Practice Section, Winter 2007 Vol. THE PROXIMATE CAUSE RULE Causation in insurance law is simple enough to describe and to justify, but some-times rather difficult to apply.2 Clearly, the insured should only be able to claim for those losses that fall within the terms of the policy, or, in other words, the loss must have been caused by a peril which the insurers had agreed to cover. In this case scratches may be a remote cause. Insurance: The Proximate Cause in English Imw 287 House of Lords, like the courts below, held that the proximate cause was the torpedo and, therefore, that the action on the policy failed. Proximate Cause and Causation. Insurance is a contract between the insurer and the insured; as such it is subject to numerous terms and conditions as contained in the policy wording. 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