Proximate Cause

Aperçu

A fire starts, the fire brigade arrives, and the water they pump to put out the flames soaks goods the fire never touched. Was the goods ruined by fire or by water? A trader will call it fire and expect the fire policy to pay. This everyday puzzle is what the principle of proximate cause exists to settle, and it decides which claims an insurer must pay and which it may refuse.

In this lesson you will learn what proximate cause means, how to trace the real cause of a loss through a chain of events, and how to tell the dominant cause from a remote one. You will meet the three kinds of peril that appear in every policy, and the four working rules that tell you, case by case, whether the claim is payable. Master this and you can reason your way through the trickiest question on the paper.

Objectifs

  1. Define proximate cause and explain the importance of the dominant and effective cause of a loss
  2. Distinguish the proximate cause from a remote cause in a chain of events
  3. Apply the doctrine to determine whether a claim is payable where several causes operate
  4. Explain how insured, excepted and uninsured perils affect the settlement of a claim

Note de cours

Suppose a warehouse in Kano is struck by lightning. The strike sparks a fire, the fire weakens a wall, and the wall collapses onto a delivery van parked outside. Three different things went wrong: a lightning strike, a fire and a falling wall. If the policy covers fire but not storm, and the van is on a separate motor policy, who pays for what? You cannot answer until you can name the one cause that really drove the loss. That is the job of proximate cause, and almost every disputed claim turns on it.

Évaluation de la leçon

Félicitations, vous avez terminé la leçon sur Proximate Cause. Maintenant que vous avez exploré le concepts et idées clés, il est temps de mettre vos connaissances à lépreuve. Cette section propose une variété de pratiques des questions conçues pour renforcer votre compréhension et vous aider à évaluer votre compréhension de la matière.

Vous rencontrerez un mélange de types de questions, y compris des questions à choix multiple, des questions à réponse courte et des questions de rédaction. Chaque question est soigneusement conçue pour évaluer différents aspects de vos connaissances et de vos compétences en pensée critique.

Utilisez cette section d'évaluation comme une occasion de renforcer votre compréhension du sujet et d'identifier les domaines où vous pourriez avoir besoin d'étudier davantage. Ne soyez pas découragé par les défis que vous rencontrez ; considérez-les plutôt comme des opportunités de croissance et d'amélioration.

  1. Proximate cause is best described as the: A. First event in the chain of causes B. Last event before the loss occurred C. Dominant and effective cause of the loss D. Cheapest cause for the insurer to accept Answer: C
  2. A peril that is named in a policy as specifically not covered is called an: A. Insured peril B. Excepted peril C. Uninsured peril D. Fortuitous peril Answer: B
  3. Where the proximate cause of a loss is an insured peril, the insurer is liable even if part of the loss was also caused by: A. An excepted peril B. A warranty C. An uninsured peril D. The sum insured Answer: C
  4. A goods lorry insured against fire overturns on a bad road; petrol leaks, ignites and the cargo burns. The proximate cause of the loss of the cargo is: A. The bad road B. The overturning C. Fire D. The leaking petrol Answer: C
  5. If the proximate cause of a loss is found to be an excepted peril, the insurer is: A. Fully liable B. Liable for half the loss C. Not liable D. Liable only up to the sum insured Answer: C

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