what is proximate cause in insurance

But besides the common law doctrine of proximate cause policy wordings generally also convey the idea of 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. 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 Principles of Insurance : Proximate Cause The efficient cause which brings about a loss with no other intervening cause which breaks the chain of events. 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. This means understanding if the injury would occur but for the action or lapse of the defendant. 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. The proximate cause was the behavior of George Costanza, as played by Jason Alexander. Proximate cause can be direct, dominant, effective, immediate cause. The difficulty arises when there are two or more possible causes. The direct cause of loss; exists if there is no unbroken chain of events leading from one act to a r 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. 2, page 3. n. a happening which results in an event, particularly injury due to negligence or an intentional wrongful act. Proximate Cause and Causation. 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. 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. When losses do … For example, imagine an SUV sideswipes a car and injures the driver. Posted in Insurance. It may not be the first event that set in motion a sequence of events that led to an injury, and it may not be the very last event before the injury occurs. Proximate cause is the “legal cause,” or what the law recognizes as a primary cause of the injury. People often purchase liability insurance in case they are responsible for being the proximate cause of an injury or a loss. 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. The proximate cause is essentially that initial event that triggered the claim and need not be the event that immediately preceded the loss. Everyone agrees that an iceberg was the proximate cause. We would be well served by getting rid of these terms and other jargon as a prologue to the development of a set of simple and cogent doctrines. In practice, the principle of proximate cause is applied in claiming damage and litigation. The survey of some law cases is helpful in demonstrating the court approach in determining the proximate cause. •I. For example, many people buy auto insurance in case they accidentally cause an accident on the road while they are driving. California Courts have interpreted California Insurance Code sections 530 and 532 to codify the efficient proximate cause doctrine. proximate cause. Home > Insurance > That sinking feeling – proximate cause and insurance. CONCURRENT PROXIMATE CAUSES IN INSURANCE DISPUTES: AFTER GARVEY, WHAT WILL POLICYHOLDERS EXPECT? 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 . By Larry Bache on February 28, 2013. 7 Sebo v. American Home Assurance Company, Inc. 208 So. 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. 21 The public prosecutor must prove the defendant's act was the proximate cause of the injury. Determining Proximate Cause Through Different Rules. 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. Now, consider that same example, but this time, let’s say the SUV driver is drunk. 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. What is Proximate cause? Certain states take into consideration the “but for” rule for 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. Let us take another example. No insurance claim can succeed unless the loss is proximately caused by a peril insured against. 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. In practice it is very important to study the policy wording to assess its impact on the concept of proximate cause. Proximate cause is not confined to insurance law but is important to most branches of law and. The proximate cause, whether an event covered by a policy (“peril”) or an event excluded from a policy (“exception”), “is the dominant or effective or operative cause.” So says MacGillivray and Parkington.1 So say the courts. That sinking feeling – proximate cause and insurance By Donald Dinnie on January 20, 2020 Posted in Insurance. 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. 19 It focuses on the specificity and specific functions of proximate cause on insurance law. Insurance policies are long, convoluted, and abstruse documents. 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. A man scratches his leg falling from a ladder. This can be a little confusing, so an example might help. It is an action that produced foreseeable consequences without intervention from anyone else. 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. It is hard to disagree. Proximate cause. Its proximate cause is a thing to be convinced about. If the cause is an insured one, the claim is payable, if the cause is uninsured or excepted the claim is not payable. at 700. In this blog, we… Read More »The Meaning of Proximate Cause Proximate cause means “legal cause” or one that the law recognizes as the primary cause of the injury. A proximate cause was the rise in subprime lending. Proximate cause is very relevant in liability cases. 20 That there is no stipulation in Chinese law leads to the difference judgment in litigation. It is also hard to understand what it means and hence hard to apply it. After initially appearing to be covered the claim was later denied. Proximate cause is used in civil and criminal cases, and are frequent in personal injury legal cases. The actions of the SUV driver are the actual cause of the accident. In this case scratches may be a remote cause. 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. The proximate cause is not necessarily the first cause, nor the last cause; it is the dominant, efficient or operative cause. Proximate cause relates to the relationship between an event and an injury. The type and amount of insurance one obtains for protection of property and person will substantially affect one's ability to compen- sate adequately for unexpected loss. Recently, a small restaurant was vandalized. C.L.J. 3d 694 (Fla 2016) at 698. It mainly revolves around the claim administration and, more precisely, diagnosing the role of the peril in a claim. It is for this reason that the insurance idea of proximate cause becomes so important. 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. 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. The important point to consider here is that proximate cause is the only nearest cause and not the remote cause. 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. 8 Id. INTRODUCTION Insurance serves an increasingly important function in society. 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