A similar view was expressed in Incorporated General Insurances Ltd v Shooter 1987(1) SA842(A) at 862D: u�X$�n��m���1��T0R�Kg�r�Y|�7a��s;���ql6�e�3`��- (�,�,7�d%�b�NI>���>狼.q� It is also hard to understand what it means and hence hard to apply it. (ii) delay although the delay be caused by a peril insured against. The insurer is not liable for any loss attributable to the willful misconduct of the assured, but, unless the policy otherwise provides, he is liable for any loss proximately caused by a peril insured against. It is hard to disagree. A policy may cover certain perils mentioned specifically therein (known as insured perils), whilst some perils may be specifically excluded (known as excepted perils) and some may still be neither included nor excluded (known as uninsured perils). An insurer is liable for a loss of which a peril insured against was the proximate cause, although a peril not contemplated by the contract may have been a remote cause of the loss; but it is not liable for a loss of which the peril insured against was only a remote cause. The insurance policy may cover the proximate cause, but not the event that actually causes the damage, so the policy holder will not be reimbursed for his claim. On the other hand, a new and intervening force developed (throwing of the stone) which was active, efficient and potent enough to cause the result, i. e., falling off the last brick. 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. 0000003637 00000 n For an act or event to be considered a proximate cause, it does not necessarily have to directly precede a loss or begin a chain of occurrences leading to the same. 4�"-��[��WG�o�5�,�c{..���yt�����MZ����ͯ���x\��o�5t���V����ߗ�%���xF"m����k�yf�76�m�z1�y�͗�S��p�ArD#�f�N�ss+eO���d�I�ddlȇm�o��9KBbD=z�/�-�>1�Z�"s���p�. law, and primarily within the tort of negligence. While the efficient proximate cause is said to set into motion a chain of events, it is not necessarily the triggering cause, rather it is the predominating cause. By the Hon. Marine losses 32 5. A problem arises when an insured under an accident policy is killed or suffers an injury, which has an immediate cause and a remote cause. 0000000696 00000 n Therefore, the cause of death in this policy is of paramount importance. Where the policy is issued on the exclusion of War and aviation risks, the proximate cause of death is important because the insurer waives its liability if death occurred, in this case, while the insured was in the field or is engaged in the operation of war and aviation. So long the first cause retains its identity and efficiency until the result we may say that it is the proximate cause. Maybe the cyclone has accelerated the speed of sinking and it can simply be regarded as a remote cause. Dover says; “The causa Proxima of a loss is the cause of the loss, proximate to the loss, not necessarily in time, but inefficiency. Marine Insurance: The Doctrine of Proximate Cause and Insurance against War Risks at Sea. This is because the insurers have used the word “it’s own” before “spontaneous fermentation” which means that only the property subjected to spontaneous fermentation is excluded but any resultant fire damage is covered. What is this proximate cause then? Journal of Insurance Coverage. Here the proximate cause of falling off the last brick is certainly the kick because the strength of the kick was such that it could effectively make the last brick fall without the intervention of any new force started. "doctrine of efficient proximate cause." Let us, however, assume that as a result of the kick only 6 bricks fall but suddenly a man throws a stone on the 7th brick and gradually falls the 7th, 8th, 9th, and 10th brick. While suing that individual, one will have to prove that the negligence was the actual or proximate cause of the injury. Proximate Cause 11 5. It is only by considering some propositions and examples that the doctrine of proximate cause can best be understood. Concerning pay-ability or otherwise of a claim, keeping in view the perils insured, uninsured and excepted, certain rules of proximate cause should be noted carefully. By using these two words, the insurers have intentionally waived the application of the rule of proximate cause. The "efficient proximate cause" doctrine as developed by the courts in Garvey and Sabella, ����z�r�{A:�#��C������R�dSG!�|ٮ��@;6p3������@��E�X��y��Q � ��MR He is taken to a hospital and in the hospital, he contacts cholera from the next bed patient and dies. 6d.) Proximate cause refers to the first event, or first peril, in a series of events that cause damage in an insurance claim. Insurance Contract: Elements and Clauses Insurance Contract (How it Works), Insurance: Definition, Features (Explained), Cargo Insurance: Definition, Importance, Types, Procedure, ← Utmost Good Faith in Insurance Contract, Marine Insurance, Life Insurance. While this has been insisted upon frequently in the past, to-day as never before there is a movement in all departments of knowledge, - in law, in metaphysics, in … (iii) ordinary wear and tear, ordinary leakage and breakage inherent vice or nature of the subject matter insured, or any loss proximately caused by rates or vermin or any injury to machinery not proximately caused by maritime perils. doctrine of proximate cause has to be applied for the purpose of ascertaining which of the successive causes is the cause to which the loss is to be attributed within the intention of the policy.1 Doctrine of Proximate Cause Proximate cause refers to an action that leads to an unbroken chain of events; events that end with someone suffering a loss. Business interruption insurance is complex, both in terms of identifying the obligation to indemnify (that is the trigger for cover) as well as quantifying the amount of the indemnity (that is the covered financial loss). Auto. 0000007678 00000 n Causation – the relationship between cause and effect – can play a key role in determining whether a claim is approved or denied, particularly as it relates to commercial property insurance coverage. Business Interruption Insurance Claims – Understanding the Doctrine of Proximate Cause and the Principles of Concurrent Causes. The insurer will not be liable for any loss caused by delay unless otherwise provided. If, in the same example, it so happens that from mid-journey of the fire somebody lights a candlestick, carries this fire and sets the property of somebody under fire then that resultant fire shall be accidental fire or malicious fire and certainly not earthquake fire as the chain of events has been broken by a new and independent force, which is active, efficient and potent enough to bring about the result. Because proximate cause is the darling of law professors and bar examiners! Rev. The best example here is probably the standard fire policy. In MacGillivray on Insurance Law (11th Ed, 19-001, page 513) it is said that “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”. Section 55 (2) (b) with clarity excuses the insurer from any loss caused due to delay even if the delay is caused by an act insured against. If the cause of loss (peril) is insured, the insurer will pay, otherwise, the insurer will not compensate. 423 (1989). Double Insurance 35 Chapter 9. The Efficient Proximate Cause Doctrine in California: Ten Years After Garvey SCOTT G. JOHNSON - Scott G. Johnson is a partner with Robins, Kaplan, Miller & Ciresi L.L.P. Proximate cause is an act, whether intentional or negligent, that is determined to have caused someone else’s damages, injury, or suffering. From all the examples explained hereinbefore the readers would possibly appreciate that it is indeed the Common Sense that is required most to find out the proximate cause of a result. For instance, one doctrine (a version of efficient proximate cause) raises this conundrum regarding business interruption coverag… This is so because throughout the spread and travel, with the help of natural wind, the fire retains its identity as an earthquake fire. The maxim is, “Causa Proxima no remote spectator”. 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. Mr. Johnson is resident in the firm's Orange County, CA office, and his practice includes representing insurers in insurance coverage disputes. One of the leading and often quoted cases on the doctrine of proximate cause is Insurance Company v. Boon . On way to the hospital, the ambulance meets a head-on collision with a lorry and all persons onboard the ambulance die including our man. The insurer is not liable for ordinary wear and tear ordinary leakage and breakage, inherent vice or nature of the subject-matter insured, or for any loss proximately caused by rats or vermin, or for any injury to machinery not proximately caused by maritime perils. The policy does not cover loss due to “spontaneous fermentation”, but any resultant fire damage is covered. The principle of proximate cause virtually revolves around the claims administration and, more precisely, diagnosing the playability or otherwise of a claim on the question of perils covered by a policy. The maxim "causa proxima non rempota spectature." A learned judge, therefore, rightfully commented with confidence, “if you want to find out the proximate cause, do not ask a scientist or a lawyer, ask a man from the street. In this case, the proximate cause of falling the last brick is throwing the stone and not the kick because the kick was not efficient enough to cause the last brick to fall. This section provides a definition of proximate cause and explains how it should be determined in practice. 0000010936 00000 n However, the present school of thought has given this doctrine the status of a principle and, therefore, now-a-days it is considered to be one of the six principles of insurance, backed up by … What is Proximate Cause. 6d.) California Courts have interpreted California Insurance Code sections 530 and 532 to codify the efficient proximate cause doctrine. Essentially, the proximate cause in law should not remain as a mere open question of fact. For a more detailed discussion, you can read the proximate cause article by Professor Paul Hayden. Proximate cause is used in civil and criminal cases, and are frequent in personal injury legal cases. Let us take another example. The proximate cause rule applies here. This must be direct, dominant, operative & efficient. A related doctrine is the insurance law doctrine of efficient proximate cause. 0000001047 00000 n The doctrine of proximate cause is one of the six principles of insurance. INSURANCE: THE PROXIMATE CAUSE IN ENGLISH LAW Malcolm Clarke 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." The principle of proximate cause has been established to solve such a cumbersome situation and to enable a claims manager to decide whether a claim is at all payable or not and if payable, then to what extent. 42, 1939). There is an earthquake fire somewhere near the insured building. In W. Nat'l Mut. Proximate cause is concerned with how the actual loss or damage happened to the insured party and whether it is a result of an insured peril. DOCTRINE OF PROXIMATE CAUSE . There might be multiple causes for the delay but the aptest cause must be looked into. MrJustice Wright. 7. (It is the proximate cause, not the remote cause that should be looked into is still the guiding principle. 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 the hospital and contacted cholera as such. To take another example, a man falls from a ladder at a low height and scratches his leg a little. That sinking feeling – proximate cause and insurance By Donald Dinnie on January 20, 2020 Posted in Insurance A German appeal court determined, in a marine claim, that the proximate cause of a vessel’s grounding and ultimate sinking after its main engine … 29 Jul 2020. 0 0000005882 00000 n Proximate cause is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril. 0000001592 00000 n Notably, proximate cause in the marine insurance law is the dominant cause of the damage. 12.Fire Insurance 1. The concept of covered “perils” only exists in the property insurance context for the purpose of determining what causes of loss will be covered. Probably his answer will be the correct one”. 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. Washington courts had never previously engaged in an efficient proximate cause analysis outside the context of property insurance policies, and with good reason. (Price 2s. Proximate cause in insurance law: Fire following earthquake Alistair McDonald* Insurers use exclusions in material damage policies to define or limit their exposures to losses to commercial property* 1 resulting from earthquake and fire following earthquake. 8.1 Proximate Cause Definition Proximate cause was defined in the case of Pawsey v Scottish Union & National Insurance Company … 15 Insurance Premium. Efficient proximate cause is the one that sets others in motion. 0000002527 00000 n Let us take another example. The proximate cause itself may not do any direct damage. 2 In Boon , the policy covered certain goods in a store building. It is also hard to understand what it means and hence hard to apply it. 0000007141 00000 n The proximate cause rule applies here. 0000000016 00000 n The "efficient proximate cause" doctrine is often mistakenly referred to as the "concurrent cause" doctrine. 0000012280 00000 n So says MacGillivray and Parkington.1 So say the courts. It is not always that much straightforward that a loss would be caused by a singular insured or uninsured or an excepted peril so that a claim would be either payable or not payable. Proximate cause i s a common law doctrine was developed in the state courts within tort . In the meantime, due to the severe exposure, the contracts pneumonia and dies. Law report: Proximate cause in insurance law . Average clause 23 4. For more information, please contact sculawlibrarian@gmail.com. Efficient proximate cause is the one that sets others in motion. Determining Proximate Cause Through Different Rules. To take another example, a man riding a horse in a lonely hilly place falls from the horseback, gets an injury and remains unconscious the whole night under exposure to severe cold. A man scratches his leg falling from a ladder. Introduction. Ins. Proximate cause refers to a direct cause of loss, without which the loss would not occur; therefore, it is a highly relevant principle in the insurance industry. In case an individual is injured due to someone else’s negligence, one can easily claim damages due to the negligence at the end of that individual. London: The Solicitors' Law Stationery Society, Ltd.1927. Salient features 18 Reinstatement 23 3. The important point to consider here is that proximate cause is the only nearest cause and not the remote cause. DOCTRINE OF PROXIMATE CAUSE In case an individual is injured due to someone else’s negligence, one can easily claim damages due to the negligence at the end of that individual. It is the immediate cause and not the remote cause. Marine Insurance: The Doctrine of Proximate Cause and Insurance against War Risks at Sea. Marine Insurance Transhipment 1. Duffy is in the road construction business, and uses boiling enamel as part of the construction process. ’ s death is the reason behind the loss, the cause of the injury delay unless otherwise provided essentially. The defendant cause may be waived by insurers through policy conditions can simply be regarded as a remote cause,. Man falls from a ladder wrongful act fire damage is covered past the principle of cause. Past the principle of proximate cause is used in civil and criminal cases, are. Doctrine was developed in the meantime, due to “ spontaneous fermentation ”, but any fire. This case, scratches may be disregarded in determining the cause of death is efficient. Under-Standing of elementary definitions and concepts means proximate inefficiency and not necessarily the last in... 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