Where the consequence of each can be easily ascertained; and. Proceeding on that basis, the function of the Court is to identify the proximate cause of the damage. 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 . 1. But proximate cause can also be the most difficult issue in a personal injury case. From the above discussion, it is quite evident that the insured is allowed to recover the loss from the insurer only when: the loss has been caused by the insured peril; and; the cause has been proximate to the loss. In tort law, multiple actions by one or more defendants that are a substantial factor in producing the loss can qualify as proximate causes. Efficient proximate cause. The proximate cause rule applies here. Proximate Cause Rules After framing the claim as either a "chain of events," "sequential events," or "concurrent events" fact pattern, and after applying the "but for" test to make sure that all of the causes of loss can be legitimately included in the analytical framework, the next step is to apply the appropriate common law proximate cause rule. It was held that the accident rendered him unusually susceptible to cold, and as the catching of cold and pneumonia were attributable to state of health and consequent on the accident, his death resulted from the effect of injury caused by accident within the meaning of policy. Any coverage provided by insurance policy is contingent upon there being a causal connection between the loss and the covered peril. c. Proximate cause – the ins. Ionides Vs. Universal Marine Insurance Company it was held that – “The relation of causation is a matter that cannot be often distinctly ascertained, but if in the ordinary course of events, the one antecedent is constantly followed by other”. Oakes, Fire Insurance Risks and Claims, Wiley-Blackwell . There might be multiple causes for the delay but the aptest cause must be looked into. The view expressed by Lord Shaw in 1918 prevails to this day. This test is called proximate cause. Otherwise, if the defendant’s actions set in motion a long, bizarre chain of events that could not have reasonably been foreseen to lead to the plaintiff’s damages, courts will not impose liability. There is a long line of decisions which say that the cause is proximate if it can be described as the “dominant”, “direct”, “real”, “actual”, “determining”, “operative”, “predominant”, or “efficient” cause. 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. The real, effective or dominant cause. CONCLUSION: There are numerous case laws and judicial decision of Doctrine of Proximity of Cause. 1.0 INTRODUCTION Proximate cause refers to the events that cause harm in an insurance claim, the proximate cause refers to the first case, or first peril. 7. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Principle of proximate cause: Proximate cause literally means the ‘nearest cause’ or ‘direct cause’. 6. Mold can cause serious illness and property damage. When proximate cause is the question in a first-party insurance claim, it is an oversimplification to merely state that it is a jury ques tion. The principal of “Causa Proxima”, is not to be used for drawing subtle distinctions between the various phrases used in the policy, but for the purpose of ascertaining whether loss falls within the policy. Which of the following principles of Insurance enables the insured to claim the amount from the third-party responsible for the loss? Posted in Insurance. This principle applies when the loss is the result of two or more causes. Proximate cause is not confined to insurance law but is important to most branches of law and. Insurance Code section 530 sets forth the efficient proximate cause doctrine, an interpretive rule for first party insurance disputes. Also they are subject to conditions (which are rules that insurers expect Customers to follow in order for policy cover to apply); and exclusions (circumstances under which cover does not apply). If the proximate cause (Cause 1) is covered, the loss is covered. When an auto accident involves multiple casualties because the driver crashed into several cars, the court may consider these casualties to be part of the same event because the accident had one proximate cause. Dear Friends, you know that insurance has become as essential as our basic requirements of food, shelter, cloths etc. Marsden Vs. City and County Assurance Company: the plate glass in the plaintiff’s shop front was insured against loss or damage originating from any cause whatsoever, except fire, breakage during removal etc. Unluckily, Ms. Ho's abdominal aorta wall was punctured during the operation and she went into shock with internal bleeding. Donald Dinnie, Norton Rose Fulbright . (2) As a principle of tort law, proximate cause refers to a doctrine by which a plaintiff must prove that the defendant’s actions set in motion a relatively short chain of events that could have reasonably been anticipated to lead to the plaintiff’s damages. 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