Proximate Cause

Bayani Gaba-gaba

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.

Manufura

  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

Takardar Darasi

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.

Nazarin Darasi

Barka da kammala darasi akan Proximate Cause. Yanzu da kuka bincika mahimman raayoyi da raayoyi, lokaci yayi da zaku gwada ilimin ku. Wannan sashe yana ba da ayyuka iri-iri Tambayoyin da aka tsara don ƙarfafa fahimtar ku da kuma taimaka muku auna fahimtar ku game da kayan.

Za ka gamu da haɗe-haɗen nau'ikan tambayoyi, ciki har da tambayoyin zaɓi da yawa, tambayoyin gajeren amsa, da tambayoyin rubutu. Kowace tambaya an ƙirƙira ta da kyau don auna fannoni daban-daban na iliminka da ƙwarewar tunani mai zurfi.

Yi wannan ɓangaren na kimantawa a matsayin wata dama don ƙarfafa fahimtarka kan batun kuma don gano duk wani yanki da kake buƙatar ƙarin karatu. Kada ka yanke ƙauna da duk wani ƙalubale da ka fuskanta; maimakon haka, ka kallesu a matsayin damar haɓaka da ingantawa.

  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

Littattafan da ake ba da shawarar karantawa

Principles of Risk Management and Insurance
Principles of Risk Management and Insurance
Sunaƙa: Thirteenth edition
Mai wallafa: Pearson
Shekara: 2016
ISBN: 978-0-13-408257-8
Bayanan bayanin.: The standard introduction to risk and insurance, covering risk management, insurer operations and the main lines of life, health, property and liability cover.
Fundamentals of Risk and Insurance
Fundamentals of Risk and Insurance
Sunaƙa: Tenth edition
Mai wallafa: Wiley
Shekara: 2008
ISBN: 978-0-470-08753-4
Bayanan bayanin.: A clear account of the nature of risk and the economics of insurance, written for beginning students across life, health, property and liability insurance.
Fundamentals of Insurance
Fundamentals of Insurance
Sunaƙa: Second edition
Mai wallafa: Himalaya Publishing House
Shekara: 2017
ISBN: 978-93-5097-079-9
Bayanan bayanin.: An accessible treatment of insurance in four parts: the basics of risk, insurance management, life insurance and non-life insurance.