Noun. Quiz: How Well Do You Know Life Insurance? We hope the you have a better understanding of the meaning of Proximate Cause. Contribution is a similar principle to indemnity, and it applies to situations where you … The proximate cause itself may not do any direct damage. If the proximate cause is the one in which the property is insured, then the company must pay compensation. Terms of Use - proximate cause. The Key Elements of an Insurance Contract. It was held that the proximate cause of sinking of the ship was torpedo (Leyland shipping Co. V. Norwich Union Fire Insurance … Nevertheless, proximate cause is an important legal concept that in certain situations can provide an effective affirmative defense in malpractice lawsuits . The actions of the person (or entity) who owes you a duty must be sufficiently related to your injuries such that the law considers the person to have caused your injuries in a legal sense. You Need Insurance for Renovations, Parental Liability: When You're Responsible for Another's Actions. This is also called the principle of ‘Causa Proxima’ or the nearest cause. proximate cause is covered depends upon the application of the terms of the policy to the fact pattern, a legal question for a court to decide. Proximate cause relates to the relationship between an event and an injury. Causation is a crucial issue in ascertaining whether certain loss or damage is covered in an insurance policy. Identity Theft Insurance: Is It Worth the Price? Proximate Cause; Proximate Cause. INSURANCE, LAW something that is considered to be the direct cause of damage, loss, or injury: The proximate cause of the disaster was a piece of metal lying on the runway. That being the case, we do not consider proximate cause unless we have established actual cause. Antonyms for Proximate cause. K    Learn More. All rights What that means is that Something which is either carelessly or intentionally caused and results in someone's injuries or distress. The proximate cause is essentially that initial event that triggered the claim and need not be the event that immediately preceded the loss. A few circumstance… The doctrine may apply when property has been damaged by two or more causes, some of which are excluded. the concurrent cause doctrine from tort law to a first-party property policy. For example, it’s foreseeable that an oven might catch on fire if someone forgets to turn it off. It is hard to disagree. Proximate Cause Active, direct, and efficient cause of loss in insurance that sets in motion an unbroken chain of events which bring about damage, destruction, or injury without the intervention of a new and independent force. Cause-in-fact is determined by the "but for" test: But for the action, the result would not have happened. Also called direct cause. Liability insurance would help cover the defense costs as well as any damages awarded to the plaintiff. 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 hospital and contacted cholera as such. Establishing a proximate cause is important in determining whether coverage applies or if liability can be imposed on the negligent party. 12222 Merit Drive, Suite 1600 There are two types of causation in the law: cause-in-fact, and proximate (or legal) cause. In insurance cases the policy enumerates and thus highlights the possible causes to which attention should be given. The fact that one of these circumstances was abnormal or special does not necessarily deprive the master's act of the title of proximate cause: see Hart and Honored op. Proximate definition is - immediately preceding or following (as in a chain of events, causes, or effects). Origin of Proximate. As for liability insurance, if the negligent act of a certain party is said to be the proximate cause of harm to another party, it serves as a legal basis to hold the former liable. Learn More, Have expert analysis of core ISO coverage lines as well as commercial and personal lines right at your fingertips. D    Proximate Cause of Fire Insurance. Proximate cause is also known as proximate causation. A ship was severely torpedoed and was in the process of sinking. situation involving two independent perils that operate concurrently to produce Contact Us. 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. What is excluded in a general liability policy? 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." Synonyms: approaching, coming, forthcoming… Antonyms: late, recent, away… Find the right word. Example of Principle of proximate cause. International Risk Management Find another word for proximate. G    One illustration sample of an insurance principle. Cargo insurance covers the loss or damage of cargo during the transportation process. 5 Water Damage Home Insurance Scenarios: Are You Covered? That which causes a negative event, such as an injury. Failure by the insurer as to its tasks means that the insurer has not carried its burden, and therefore the insured is entitled to coverage under the policy. It is also hard to understand what it means and hence hard to apply it. - Renew or change your cookie consent, How to Get a Life Insurance Quote Online: The Good, the Bad and the Ugly, The Top 5 States with the Lowest Car Insurance Rates, How Insurance Companies Value Your Home for Your Home Insurance, Do I Really Need Wedding Insurance? A proximate cause is one that is legally sufficient to result in liability. Example: Why did the ship sink? This principle applies when the loss is the result of two or more causes. In law, a proximate cause is an event sufficiently related to an injury that the courts deem the event to be the cause of that injury. Below, we break down the most commonly asked questions about proximate cause and explain how it may impact your case. This principle states that the property is insured only against the incidents that are mentioned in the policy. This means understanding if the injury would occur but for the action or lapse of the defendant. Insurance protects against some perils -- types of damage -- but not others. (800) 827-4242 X    … 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. … When a claim occurs under a general insurance policy the insurers will identity the proximate cause of the loss to ensure that the loss or damage has been caused by an insured peril but what is proximate cause and how does this affect the settlement of claims. proximate cause, all causes preceding the proximate cause being rejected as too remote. What is Proximate Cause Proximate cause is an act, whether intentional or negligent, that is determined to have caused someone else’s damages, injury, or suffering. proximate cause is covered depends upon the application of the terms of the policy to the fact pattern, a legal question for a court to decide. The principle of proximate cause has already been discussed in detail. As a policy may exclude certain perils, if the one determined to be the proximate cause is not covered in the policy, the insurer would not have to pay out benefits, while the inverse would hold true as well. Beale, 33 Harv.L.R. S    B    imagine what would happen if one of the perils did not occur. PROXIMATE CAUSE IN THE LAW OF TORTS Benjamin C. Zipursky The Problem of Proximate Cause. Principle of Proximate Cause This is also called the principle of ‘Causa Proxima’ or the nearest 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. J    The rule is that the immediate and not the remote cause is to be regarded as causa proxima non-remota spectature. Failure by the insurer as to its tasks means that the insurer has not carried its burden, and therefore the insured is entitled to coverage under the policy. F    The peril having the most significant impact in bringing about the loss in a [There may be one or more proximate causes of a [condition] [disability] [death].For a worker to be entitled to benefits under the Industrial Insurance Act, the [work conditions] [incident] must be a proximate cause of the alleged [condition] [disability] [death] for which entitlement to benefits is sought. Almost immediately there was a cyclonic storm and the ship sank. (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. Did You Know? Institute, Inc. (972) 960-7693 Determining Proximate Cause Through Different Rules. En savoir plus. proximate cause meaning: something that is considered to be the direct cause of damage, loss, or injury: . Associate in Insurance Accounting and Finance (AIAF). 6] Proximate Cause. 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