One example of application of the principle of proximate cause may be remembered here. Car Hits Power Pole, Causes Power Outage. Aug 23, 2020 example of proximate cause Posted By Ry?tar? Here, the insurer, Law Union, issued a fire policy to an insured covering fire, but not storm or cyclone etc. Not every remote cause of an injury will result in a right to recover damage. The definition of the “cause” was under test in many cases and was mentioned clearly in the Marine Insurance Act 1906 in its section 55 that the cause should be proximate, as follows: 1. The doctrine of proximate cause, which is common to all branches of insurance, must be applied with good sense so as to give effect to and not to defeat the intention. Co.—selection from the chain (or net) of causation of the event closest (most proximate) in time (or distance) to the injury or damage—is the genesis of proximate cause in tort and insurance contract law. C.L.J. Loss Caused by Explosion. People often purchase liability insurance in case they are responsible for being the proximate cause of an injury or a loss. Example of Principle of proximate cause. The proximate cause of loss should be fire. For an act or event to be considered a proximate cause, it does not necessarily have to directly precede a loss or begin a … proximate cause, all causes preceding the proximate cause being rejected as too remote. 4. Allianz (my insurer) paid to have my car repaired as I had Comprehensive cover. Proximate cause has been defined in a well known case of Pawsey Vs Scottish Union and National Insurance Company. When a covered peril and an excluded peril both contribute to a loss, the efficient proximate cause rule dictates that the question of coverage will turn on which event (the excluded peril or the covered peril) was the efficient proximate cause of the loss – that is, “the cause that triggers other causes to result in a loss.” Findlay v. For example, if someone negligently backs into the car of a 95-year-old, causing her outrageously high medical bills, the defendant is still the proximate cause of the injury. Proximate cause is a legal concept applied to limit the scope of liability in a civil or criminal action. The damage to my car was caused accidentally by me. 6] Proximate Cause This principle states that the property is insured only against the incidents that are mentioned in the policy. A fire insurance policy cannot be assigned without the permission of the insurer because the insured must have insurable interest in the property at the time of contract as well as at the time of loss. In case the loss is due to more than one such peril, the one that is most effective in causing the damage is the cause to be considered. For example, California Insurance Code § 530 provides: An insurer is liable for a loss of which a peril insured against was the proxi-mate cause, although a peril not contemplated by the contract may have been a remote cause of the loss; but he is not liable for a loss of which the peril insured against was only a remote cause. When considering the cause of loss or damage the insurer is concerned with the Proximate 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. You take the plaintiff as you find them. Usually, the first and last events can be easily indentified but it is any intermediate events and causes, which happen, that may be more tricky to determine. Almost immediately there was a cyclonic storm and the ship sank. In practice it is very important to study the policy wording to assess its impact on the concept of proximate cause. Usually, the first and last events can be easily indentified but it is any intermediate events and causes, which happen, that may be more tricky to determine. insurance policy may not contractually exclude coverage when an insured peril (such as fire) is the efficient proximate cause of a loss, regardless of other contributing causes. 3. Proximate cause is very relevant in liability cases. The underlying root cause is determined by looking at the chain of events leading up to the accident. Shiba Media Publishing TEXT ID c262ab71 Online PDF Ebook Epub Library What Is Proximate Cause In A Car Accident Case Nolo in the context of a car accident case the concept of proximate cause refers to … That is of GASKARTH V. LAW UNION held in 1876. State Farm Fire & Casualty Co. (1990) 218 CA3d 446. A ship was severely torpedoed and was in the process of sinking. In that case there was a fire at the insured’s factory and the factory was destroyed. Id. 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