The efficient proximate cause doctrine is rooted in the Latin maxim causa proxima, ... One of the leading and often quoted cases on the doctrine of proximate cause is Insurance Company v. Boon. If all of these conditions have been met and a … 34, No. The Six Principles in Insurance. �0v���$�Br 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. The right of … They are con- sidered adhesion contracts." Insurance has to fulfil all the Basic requirements of a Contract. 1981, para. 1.Principle of utmost good faith: The principle of Uberrimae Fidei (a Latin phrase), or in simple English words, the Principle of Utmost Good Faith, is a very basic and first primary principle of insurance. ��V�V�K�?�X�D�~�� Causa Proxima It is a rule of law that in actions on fire policies, full regard must be had to the causa proxima. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 0000138690 00000 n Thus, 4 this type of regulation governs capitalization, reserve policies, rates and various other "back office" processes. 6. An arrangement … See also Taylor v. Dunbar (1869) L.R. Journal of Maritime Law & Commerce, Vol. A. Adhesion Contracts Insurance contracts are not ordinary contracts." Solvency Margin & Insurance … The maxim is “Sed causa proxima non-remota spectature” i.e. 0000004956 00000 n Marine Insurance: The Doctrine of Proximate Cause and Insurance against War Risks at Sea. The doctrine of subrogation is corollary to the principle of indemnity. This notion of enforceability is central to contract law. Almost immediately there was a cyclonic storm and the ship sank. 1.Principle of utmost good faith: The principle of Uberrimae Fidei (a Latin phrase), or in simple English words, the Principle of Utmost Good Faith, is a very basic and first primary principle of insurance. (c)Doctrine of utmost Good faith . 0000151666 00000 n 0000000776 00000 n No insurance claim can succeed unless the loss is proximately caused by a peril insured against. The principle (or doctrine) of subrogation is a corollary to the principle of indemnity and applies only to fire and marine insurances. 6d.) doctrine of proximate cause has to be applied for the purpose of ascertaining which of the successive causes is the cause to which the loss is to be attributed within the intention of the policy.1 Doctrine of Proximate Cause Proximate cause refers to an action that leads to an unbroken chain of events; events that end with someone suffering a loss. 0000002823 00000 n The realm of insurance law is difficult and complex. By the Hon. Law of Contracts 1.1. The Bremen Court of Appeal recently held that the proximate cause of a vessel's grounding after its main engine had cut out was the bad weather… Insurance law is the practice of law surrounding insurance, including insurance policies and claims. see the proximate cause and not the distant cause. Property insurance law is a highly … BANKING & INSURANCE: INSURANCE Insurance is a contract to pay compensation in certain eventualities (e.g., death, fire, theft, motor accident) in return for a… The buyer himself is responsible for the choice he made. ��t�� J�)j��x��.+5�'��"���˘��pgk~;/f#��44���wl[��^�z��u�����pH�Z�x���~�M @l�~K����f��WT�db� M~��m�J��cc���[O��V�8�5Ð����:�bb|NH�@J5,����4 #�Bj+�O�B��mC�$� V8 ��yI�Wger����b����7�%�w�T��{�?�M@����c5��G���v:E�( @l�A�jN�Ez�l� � 206. This maxim of causation is applicable for both marine and general insurance. If the proximate cause of the loss is fire, the loss is recoverable. But, in many instances, a peril of the sea was itself caused by some act of negligence on the part of the master or crew. 3 0 obj �i#��^����*���a��Ly�NTެ�)��V�|Y��)DL�z��F����Zd�&&_Â�K����j���_C��I����o+$k��Qg7����vR8� Norwich Union Fire Insurance Society Ltd (1918) illustrates that the causa proxima may not necessarily be the last event to occur. endobj - Volume 3 Issue 2 - W. L. M. M.J.N had a fire insurance policy and therefore, they approached their insurance company. Marine Insurance: The Doctrine of Proximate Cause and Insurance against War Risks at Sea. The person entering into a contract should enter with his free consent. ���m�{:�$W&•���[���co�Z>|w���}������W�U�X�fo�ֹ%������r����rf�O�ps�h�s��cz`�������MY�W�+L�x��������v� �s 1�JQ�:�Y'8�q��`�c��z�T�K?�`.�H,�B�!���୒5����� +.e���)�]�3]��e�m�m��Z�KG�R���% �:h'؞�ޜ�D. y)���`4��>X�?\��(�A#\�ug�:�����:'��Sz� x��Z�o�8��AO����x$n���������=����α[n��~gH�"mQ�q(j[��p8�R�>�+;?�p;���ы����,��;=���eL������Q��2.$�,+�$E�ݽ���� ?~9=�#��'2'���oIv�����dZ��_���&���~==��D'ThJL$�h���Y�z�@ϝf�$�� ( For example Sea Pirates , Bad weather) ... Doctrine of utmost Good faith . Insurance is answer to these types of risks and uncertainties . – The syllabus will be based on UK law and practice. Example of Principle of proximate cause. RIOT VICTIMS AND THE DOCTRINE OF PROXIMA CAUSA IN INSURANCE LAW: THE LESOTHO EXPERIENCE. A ship was severely torpedoed and was in the process of sinking. O��=�p �6� In this case, there are two causes of the mishap. ... Concept of “causa proxima or the proximate cause. If the proximate cause of the loss is a peril insured against, the Insured can recover. (d)Doctrine of Causa Proxima (e) Doctrine of Warranty (e.1) Implied (e.2) Express . 2. ��L~B�� If you break (breach) the contract, the other party has several legal remedies. 0000003152 00000 n No abstract provided. This com-plexity is due, in part, to the nature and structure of insurance poli-cies and the substance of legal actions brought when a dispute arises between an insurer and an insured. law has been emphasized in the preceding chapters, both the courts, and especially, a host of legal writers, have also pointed to the need to break with the past and, to retain from it, only that which is defensible. It is the duty of the buyer to check the quality and the usefulness of the product he is purchasing. 3. This espouses the important doctrine of 'proxima causa', which means that the loss must be connected to, or associated with, its supposed 'cause'. Academia.edu is a platform for academics to share research papers. In the Concord Insurance case, supra at p 673I, the court again dealt with the complex legal questions which arise "where several factors concurrently or ... context of insurance law one would have prime regard to the provisions of the insurance policy. Re-insurance. See, for example: Montgomery v. Firemen's Ins. Before the contribution principle kicks in for insurance companies, a double insurance situation has to meet certain requirements. 287 0 obj <> endobj 0000138104 00000 n If insurance company wins the case and collects $ 1.2 million from Mr. Tom, then the insurance company will retain $ 1 million (which it has already paid to Mr. John) plus other expenses such as court fees. April 2002; Journal of African Law 46(01):59 - 91; DOI: 10.1017/S0221855302001797. Under the doctrine of contribution, when an insurance company compensates the insured, it will be indemnified by the other insurance company to the extent of the policy taken by insured. Under a contract of marine insurance, as in any other contract of insurance, the … The maxim is “Causa-proxima non remota spectaturs”. g��&�+"ީ��%Q1),�A5n��US�6�v���䙐1*�XҔ�l]��2��7Ѡ���m�@����I��^KX�ct�v?b>|C��Y"�}�o�A��{�7��%��l�~�#�2�9����+�R��#��̈́ K� ���N��*�T&oڍg\Mt�n� ��n�{ie�_. Law of Marine Insurance and Average, 16th ed. First, the hole that was caused in the bottom of the ship and second, the seepage of sea water into the ship. Mr.A has taken a marine policy to cover the goods exported by him. An adhesion contract is normally a The cause for the accident should be a direct cause for which an insurance is taken and it should not be a remote cause. Academia.edu is a platform for academics to share research papers. ���7}א���ROxe�E��AZ"\! 4- Elements of Marine Insurance Contract. Contribution: • The insurers must share the burden of payment in proportion to the amount insured by each • If one of the insurers pays the whole loss, he is entitled to contribution from other insurers. There are two types of causation in the law: cause-in-fact, and proximate cause. 0000254673 00000 n startxref %%EOF %PDF-1.5 %���� Presentation PDF Available. About this Channel. ���?���tVͰ:�39� p�9�O�lS�m�3�f������'�f�]C�vZ�{�S���;�d�"�ʠ�\���"Р�rU>l�:���f.Q�\�V����F�U��⥤d�a�r����P��`�.p��|��'\}���~�����@M�� Insurance is a contract based on utmost good faith. The question, which is the causa proxima of a loss, can only arise where there are a succession of causes. The real cause of the loss must be considered while payment of the loss. It was also held that even if a fire insurance policy had usual exemptions from loss or damage from the explosion of some kind, the insurer settled the claim. Double insurance does not necessarily imply two policies -- there may be more. The question, which is the causa proxima of a loss, can only arise where there are a succession of causes. A. Adhesion Contracts Insurance contracts are not ordinary contracts." Mr.A has taken a marine policyto cover the goods exported by him. gݒuk'Ϟ$2+҈Yxw��!��B�EY^\�ެ 6�"g����k�8��'�m��f��,x��� &�0K28ҁ� S�"�,�ß�k�iGɎ�i�Yu)jx ̩��o |��ۿo����1nU�C�"K-�U�C"�Ģ�Մ�EƗU�>{�P�H�N4+#Z�(�x���b��Y0���SE�);��7��Ρ/N��N�j5��˲~ 0�1�{���:��l��Ll��bŻ��n����لj�%���' h5� PDF | On Aug 1, 2019, Jaimin Kamleshbhai Patel published principles of insurance | Find, read and cite all the research you need on ResearchGate . endobj 0000095819 00000 n 0000003425 00000 n Established in 1985, Merlin Law Group is a leading insurance litigation law firm committed to assisting policyholders receive fair and just outcomes from their insurance companies. The action is a necessary condition, but may not be a sufficient condition, for the resulting injury. �]2�x±i����� 0000096055 00000 n 0000255081 00000 n 0000000016 00000 n Definition and Forms of contracts The law of contract is concerned about the legal enforceability of promises. - … This channel is created with an aim to share the legal and technical knowledge with the students and legal fraternity. 831 at p. 697 in footnote 42, the position is that '[d]amage to the structure is to be distinguished from a defect in the structure; thus, it is submitted, the assured could not recover under the [latent defect] clause were it to be concluded that the structural weakness in the hull must have been due London: The Solicitors' Law Stationery Society, Ltd.1927. MrJustice Wright. CAUSA PROXIMA NON REMOTA SPECTATUR: THE DOCTRINE OF CAUSATION IN THE LAW OF MARINE INSURANCE. Insurance law is the name given to practices of law surrounding insurance, including insurance policies and claims. 62 [1973] 2 Lloyd's Rep. 237; [1974] Q.B. <]>> Ivamy, General Principles of Insurance Law, 4th ed., p. 416. This com-plexity is due, in part, to the nature and structure of insurance poli-cies and the substance of legal actions brought when a dispute arises between an insurer and an insured. A contract should be simple to be a valid contract. The relevant principles and approach would be no different in South African law which determines liability on the part of the insurer only if the loss or occurrence for which the claim is brought is the proximate result of the peril or at least one of the perils insured against. Immediate or proximate means Proximate in efficiency and not necessarily in time. Availability: Find a library where document is available. 7th Aug 2019 Commercial Law Reference this Tags: International Law. 1- It is the oldest form of Modern Insurance (Common Law) 2- It provides the Protection against the perils of Sea . s�'�F�>^|>��a���=�"E>�#!�_S���JwN���J�H�m��]� Contribution Principle Rules. The term causa proxima means nearest or proximate or immediate cause. 4 0 obj During the voyage, a hole was caused at the bottom of the ship. (Price 2s. The cause for the accident should be a direct cause for which an insurance is taken and it should not be a remote cause. 0000386114 00000 n 3. At the same time, it can file a law suit against Mr.Tom for $ 1.2 million, the market value of the house. trailer 4. As a client it is the duty of the … 0000004619 00000 n The realm of insurance law is difficult and complex. Thus the policy may extend or limit the consequences covered by the policy, e g, by … Incidentally A’ may also have comprehensive motor insurance which protects him against such losses. xref Principal of utmost good faith: Under this insurance contract both the parties should have faith over each other. This principle has been defined as the “Doctrine of Rights Substitution” which means that the insurer steps into the shoes of the insured after settling the claim or after compensating the loss. This doctrine says that the seller will not be responsible for this. Through this hole, sea water has entered into the ship and damaged the goods insured. stream The ship was hit by a torpedo and despite the severe damage it still reached the port, where repair work was started. �#�i����z��h5����CƩ���@�y_{Ѩ���h04����zf�ւd0 �pS8��Љ@5y�� L� 5 During the voyage, a hole was caused at the bottom of the ship. The term ‘Subrogation’ in the context of Insurance, has been defined in Black’s Law Dictionary as: “The Principal under which an insurer that has paid a loss under an insurance policy is entitled to all the rights and remedies belonging to the insured against a third party with respect to any loss covered by the policy”. 0000138352 00000 n The policies must all cover the same property and the same event, and all the policies must be in effect and enforceable. – The October session will test the legal position as of 28th February of the same year. In other words the rule of causa proxima means that the cause of the loss must be proximate or immediate and not remote. MrJustice Wright. Thus, 4 this type of regulation governs capitalization, reserve policies, rates and various other "back office" processes. x��V�n�0}���`��u�ۚ^��k���>t{���ִ[�a�?R�b9�c���R��!y,y~5��K&%�����If4p�Q,������a:�-d��]�L'G�?�ʼ@p�;��� In the Concord Insurance case, supra at p 673I, the court again dealt with the complex legal questions which arise "where several factors concurrently or successively contribute to a single result and it is necessary to decide whether any particular one of them is to be regarded legally as a cause." At that time, marine policies covered vessels and cargo against the "perils of the seas"—grounding, collision, allision, inrush of water, and so forth. State law may allow an insurance policy to exclude coverage of an accident that occurs because the policy holder is drunk or on illegal drugs. Under the policy, goods have been insured against damage likely to be caused by sea water. 0000096147 00000 n Principle of Causa Proxima. 3. 1 0 obj Principle of Uberrimae fidei (Utmost Good Faith) Principle of Uberrimae fidei (a Latin phrase), or in … Vs. McLaren; “The doctrine of subrogation is a creature of equity not founded on contract, but arising out of relations of the parties. 2. 4 C.P. It may be natural or unnatural. If the … So the doctrine attempts to make the buyer more conscious of his choices. [W Kulundu-Bitonye] vi) Causa Proxima: In a contract of insurance, the governing rule is the proximate cause to fix the liability of the insurer. In law ‘A’ has a legal right of action against ‘B’ for damages. Insurance Law Essentials Request Demo ... American courts began rejecting Bacon's maxim "non remota causa sed proxima spectator" in favor of the more modern or scientific view that the proximate cause was the first event that set the chain of events in motion culminating in the end result. If the real cause of loss is not insured, the insurance company is not liable to indemnify the loss sustained by the insured. Immediate or proximate means Proximate in efficiency and not necessarily in time. MEANING OF INSURANCE Insurance is contact in which insurance of indemnity company or insurer in consideration of certain agrees to pay certain sum periodical payment of money i.e. dA��F�@j�j���U����r��T?���YϘw)�5䈼��X��P]Nӑѝ��s�* ���.���I��L�0]9g���]��59���Oo��v��Q��>�>�ZLKL:�����®��K�3�odj����j���v�*��\��wN�[ck�/�{U��E��Q����)����&���fK ������umY�Gc霱۶���`�[��W�6�K��L�oU�z:�JP�3������=����3K�`@�n�yDNsPb Insurance regulation that governs the business of insurance is typically aimed at assuring the solvency of insurance companies. Principle of Causa Proxima (Nearest Cause). Get this from a library! 310 0 obj<>stream endobj (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. When a storm blew up, the ship sank. Saqui and Lawrence v. Stearns [1911] 1 K.B. Co., 55 Ky. 427 (Ct. App. In other case law, Ionides v. Universal Marine Insurance Co. (1863). <> 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. Insurance law is the name given to practices of law surrounding insurance, including insurance policies and claims. 0000254915 00000 n It applies to all insurance contracts, which are contracts of indemnity. When a result has been brought about by two or more causes, you must, in insurance law, look to the nearest cause, although the result would, no doubt, not have … endstream endobj 288 0 obj<> endobj 289 0 obj<>/MediaBox[0 0 612 792]/Resources<>/Font<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI]>>/Type/Page>> endobj 290 0 obj<>/A<>/F 4>> endobj 291 0 obj<>/A<>/F 4>> endobj 292 0 obj<> endobj 293 0 obj<>stream 0000005137 00000 n London: The Solicitors' Law Stationery Society, Ltd.1927. If the cause is not fire but some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. 6d.) [The] rule to be applied is causa proxima non remota spectatur." Insurance is the process in which the loses of few are shared by many persons who are equally exposed to same risks. A few … 0000004788 00000 n ... (Leyland shipping Co. V. Norwich Union Fire … Examples of Causa Proxima. 4209 words (17 pages) Law Essay. “Causa proxima, non remota, spectatur.” General average can be only, where there is some voluntary sacrifice or voluntary expense incurred for the common benefit. Under the policy, goods have been insured against damage likely to be caused by sea water. This is very important topic of Insurance Law. !��^ȗ�W�������#�����o��)����u6��=�N��ܓ4�R�PD��{!�Ă�䄛�v��-g1�������Hm�R��st[b �P��qA The following examples will help in illustrating the meaning of the doctrine of proximate cause: Example 1. (It is the proximate cause, not the remote cause that should be looked into is still the guiding principle. BANKING & INSURANCE: INSURANCE Insurance is a contract to pay compensation in certain eventualities (e.g., death, fire, theft, motor accident) in return for a… However, the present school of thought has given this doctrine the status of a principle and, therefore, now-a-days it is considered to be one of the six principles of insurance, backed up by sound rules and legal dictum. In that context, a contract may be described as an agreement that the law (the Courts) will enforce. The real cause of the loss must be considered while payment of the loss. Causa proxima, non remota spectator is a Latin phrase which literally translates into ‘the immediate and not the remote cause are to be considered.’ Whenever the cause of any act or circumstance is need to be understood the immediate cause needs to be looked at and not the remote cause. The question of who bears the losses which resulted from the riots in Lesotho in September 1998 raises complex questions on insurance law in general and of causation in particular. 426 in which the Court of Appeal found two separate causes to be concurring causes and reached a similar conclusion. Share this: ... illustrates that the causa proxima may not necessarily be the last event to occur. 0 Meaning & Definition of Marine Insurance Section 2( C&F ) & 3 of Marine Insurance Act 1963 defines Marine Insurance and includes movables … • Indemnity principle is a rule of insurance law which says an insurance policy should not confer a benefit greater in value than the loss suffered by the insured. 2 0 obj A captain lost his course and took his ship grounded to try to pick out a lighthouse. The term ‘Subrogation’ in the context of Insurance, has been defined in Black’s Law Dictionary as: ... it was explained by Chancellor Boyd in National Fire Insurance Co. The maxim, “Causa proxima, non remota, spectatur,” is not of universal application in the law; and does not exclude incidental losses, flowing as a legal or natural consequence The maxim is “Causa-proxima non remota spectaturs”. Cause-in-fact is determined by the "but for" test: But for the action, the result would not have happened. An insurance contract comes into existence when one party makes an offer or proposal of a contract and the other party accepts the proposal. If the defendant’s actions were “proximate” or close enough in the chain of causation to have foreseeably led to the plaintiff’s damages, courts will … 0000003293 00000 n 8. x��W�OSW?���K(���D�T�X���f��H�n�U|�����s�mWyUA�G'��b4�c[������9%lә�u[4f��9���[e�?���=�|������w� h df0 %PDF-1.5 Proximate cause, or the Latin Causa Proxima, relates to the cause of the loss in that the event of the peril insured against must be covered under the insurance contract (policy), and the dominant cause of the event must not be excluded. ��� ������4�m `�>.����*��BgSp��$qL�nx�J>�4iW&X4��>Ō^ ���v0}�qg�^Y� Causa proxima, non remota spectator is a Latin phrase which literally translates into ‘the immediate and not the remote cause are to be considered.’ Whenever the cause of any act or circumstance is need to be understood the immediate cause needs to be looked at and not the remote cause. 3, July, 2003 Causa Proxima Non Remota Spectatur: The Doctrine of Causation in the Law of Marine Insurance Wan Izatul Asma Wan Talaat* I INTRODUCTION Since every event is the effect of some cause, causation is indeed a sig- nificant part in the law of insurance.' In other words, the insurance company will pay compensation to the insured only when the cause of accident is directly related to the loss. The person entering into a contract should enter with his free consent. <> The balance amount, if any will be given to Mr. John, the insured. When a result has been brought about by two or more causes, you must, in insurance law, look to the nearest cause, although the result would, no doubt, not have happened without the remote cause. Insurance. Causa proxima. For example, suppose the night watchman falls asleep in the crow's n… The ship was insured under a policy that covered perils of the seas, however excluded war risks. premium Occurrence of to compensate loss uncertain event caused by 4. the doctrine of Causa Proximo (Proximate Cause) is not applied because the insurer is bound to pay the amount of insurance whatever may be the reason of death. Cf. An insurance contract comes into existence when one party makes an offer or proposal of a contract and the other party accepts the proposal. ��c�� ��|M��O�� �B� ��51+�²"17B�S`��(j(�IH2��ѣA���3�l�6�!�={���!�#�xC���xq��| ��(CxQ�%�ˍ0��0��n��vBˈN,Fp]h����l�{�����bO��kH����� Insurance. 0000002746 00000 n Principle of Causa Proxima (Proximate Cause) ... whether the insurable interest doctrine is … Causa Proxima It is a rule of law that in actions on fire policies, full regard must be had to the causa proxima. Riot victims and the doctrine of 'proxima causa' in insurance law : the Lesotho experience. Indemnity is a guarantee to restore the insured to the position he or she was in before the uncertainincident that caused a loss for the insured. 1. Principal of utmost good faith: Under this insurance contract both the parties should have faith over each other. 0000385877 00000 n The nearest cause of the damage caused t… If the product turns out to be defective or does not live up to its potential the seller will not be responsible for this. So, this principle is not of much practical importance in connection with life assurance, but in the following cases, the proximate causes arc observed in the life insurance, too. Insurance is the process in which the loses of few are shared by many persons who are equally exposed to same risks. (Price 2s. %���� This must be direct, dominant, operative & efficient. 287 24 (d)Doctrine of Causa Proxima (e) Doctrine of Warranty (e.1) Implied (e.2) Express The ship was hit by a torpedo and despite the severe damage it still … Some of the first causation questions to be litigated involved ocean marine policies issued by Lloyd's of London underwriters covering sailing vessels in the late 1700s and early 1800s. 2 In Boon, the policy covered certain goods in a store building. Cf. The maxim is “Sed causa proxima non-remota spectature” i.e. see the proximate cause and not the distant cause. If the proximate cause of the loss is fire, the loss is recoverable. Principle of Causa Proxima (Nearest Cause). When an insurance company insure with another insurance … (a.1)Subrogation (a)Doctrine Indemnity (a.2)Contribution (b)Doctrine Insurable Interest. Insurance regulation that governs the business of insurance is typically aimed at assuring the solvency of insurance companies. The ship was insured under a policy that covered perils of the seas, however excluded war risks. The maxim "causa proxima non rempota spectature." They are con-sidered adhesion contracts." Causa proxima. If the cause is not fire but some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. Insurers’ liability is excluded if the proximate cause was an excluded peril. [The] rule to be applied is causa proxima non remota spectatur." 57. <>>> The insurance company may still have to pay out a claim if the policy holder's intoxication did not cause the accident. 0000003598 00000 n It can be broadly broken into three categories - regulation of the business of insurance; regulation of the content of insurance policies, especially with regard to consumer policies; and regulation of claim handling. Is not fire but some other cause remotely connected with fire, it is a necessary condition, but not. Dunbar ( 1869 ) L.R marine policyto cover the goods insured Insurable Interest certain requirements insured under a that... This insurance contract both the parties should have faith over each other contract both parties! Cause-In-Fact is determined by the `` but for the choice he made the maxim is “ causa. ) Implied ( e.2 ) Express Cf excluded if the real cause of loss is proximately caused by.. Compensate loss uncertain event caused by Sea water free consent Principles of insurance law: the LESOTHO EXPERIENCE for. Other cause remotely connected with fire, it is the process of sinking and reached a conclusion! The ship was insured under a policy that covered perils of the same event, all... He made central to contract law all the Basic requirements of a contract and the Doctrine Warranty..., Bad weather )... Doctrine of proximate cause, not the remote cause makes offer. 4Th ed., p. 416 Causa-proxima non remota spectatur: the LESOTHO EXPERIENCE described as an agreement that the:! Aimed at assuring the solvency of insurance law is difficult and complex example Pirates. W. L. M. insurance is taken and it should not be a sufficient condition, for example Pirates. Office '' processes likely to be applied is causa proxima ( Nearest cause ) the preceding year the... The … principle of causa proxima non-remota spectature ” i.e and the party... And General insurance contract comes into existence when one party makes an offer or proposal of a based... Its potential the seller will not be a direct cause for which an insurance is causa. Same risks August of the loss must be had to the causa proxima non remota spectatur the! See the proximate cause and not the remote cause contribution ( b ) Doctrine Warranty... Proxima non rempota spectature. Mr.Tom for $ 1.2 million, the that... … principle of indemnity law Stationery Society, Ltd.1927 be proximate or immediate cause have been insured against likely. Leyland shipping Co. v. Norwich Union fire insurance Society Ltd ( 1918 ) illustrates that the causa proxima ( cause! ( the Courts ) will enforce Universal marine insurance there are two causes of the was. The mishap meet certain requirements of risks and uncertainties excluded if the product he is purchasing of the is! P. 416 a ’ has a legal right of action against ‘ b ’ for damages Reference this:! 2 in Boon, the ship and damaged the goods exported by him two separate causes to doctrine of causa proxima in insurance law pdf by. Of loss is proximately caused by Sea water into the ship and second, the insured can recover Aug. The name given to practices of law surrounding insurance, including insurance policies and claims - … principle indemnity... Necessarily be the last event to occur premium Occurrence of to compensate loss uncertain event caused by Sea into. ; Journal of African law 46 ( 01 ):59 - 91 ;:. There are a succession of causes it should not be responsible for the resulting injury is purchasing insurance company still. Damage likely to be applied is causa proxima may not be a valid contract the last event occur!: International law this channel is created with an aim to share the legal and technical knowledge with students... Maxim is “ Causa-proxima non remota spectaturs ” ship was severely torpedoed and was in the bottom of the sank! Co. ( 1863 ) John, the market value of the product he is purchasing the but! A remote cause rule of law surrounding insurance, including insurance policies and claims the...:... illustrates that the causa proxima premium Occurrence of to compensate loss uncertain caused. $ 1.2 million, the loss is recoverable policies and claims 's intoxication did not cause the accident causation. Same year [ 1973 ] 2 Lloyd 's Rep. 237 ; [ 1974 ] Q.B 46 ( 01:59. The remote cause that should be looked into is still the guiding principle event! 2 - W. L. M. insurance is typically aimed at assuring the of. – the april session will test the legal position as of 28th February of the ship business insurance... Will test the legal position as of 31st August of the house does not live up to its the. Law is difficult and complex and various other `` back office '' processes buyer more of. Existence when one party makes an offer or proposal of a loss, can only arise where there a. Is “ Causa-proxima non remota spectatur. library where document is available John, the result would have... Shared by many persons who are equally exposed to same risks motor insurance which protects him against such losses the. Legal position as of 28th February of the loss is proximately caused by Sea water claim! In other case law, 4th ed., p. 416 v. Dunbar ( 1869 ) L.R regard must be effect! A similar conclusion duty of the ship ( e.1 ) Implied ( )! For both marine and General insurance DOI: 10.1017/S0221855302001797 Stationery Society, Ltd.1927 the causa proxima it is not,! B ’ for damages live up to its potential the seller will not be responsible for the accident be. Non-Remota spectature ” i.e... ( Leyland shipping Co. v. Norwich Union fire … Mr.A has a... ( a.1 ) subrogation ( a ) Doctrine of subrogation is corollary the... Cause remotely connected with fire, it can file a law suit against Mr.Tom $. Will enforce offer or proposal of a contract and the other party accepts the proposal and Lawrence v. [. ):59 - 91 ; DOI: 10.1017/S0221855302001797 necessarily be the last event to occur also Taylor Dunbar... … Mr.A has taken a marine insurance Co. ( 1863 ) all insurance contracts are ordinary. ) contribution ( b ) Doctrine of subrogation is corollary to the of... But some other cause remotely connected with fire, the loss sustained by the `` but for the resulting.! Victims and the Doctrine of subrogation is corollary to the causa proxima non remota spectaturs ” building... Is not recoverable, unless specifically provided for april session will test the legal position as 28th... Nearest cause ) be simple to be caused by a peril insured against, the insured weather! Certain requirements... ( Leyland shipping Co. v. Norwich Union fire … Mr.A has a! An offer or proposal of a contract and the Doctrine of 'proxima causa ' in insurance,. ( it is not insured, the loss must be in effect and enforceable $ 1.2 million the! Enforceability of promises this:... illustrates that the cause for the accident a loss, can only where! Or proximate means proximate in efficiency and not the distant cause remota spectaturs ” entering into a contract where. “ Causa-proxima non remota spectaturs ” see, for the accident should be valid. … insurance guiding principle ivamy, General Principles of insurance doctrine of causa proxima in insurance law pdf is a rule of law that actions! Live up to its potential the seller will not be a remote cause policy to cover the goods exported him! Action, the market value of the loss is recoverable term causa proxima non remota spectatur. Issue! Which is the causa proxima into the ship was severely torpedoed and in! Lawrence v. Stearns [ 1911 ] 1 K.B 1911 ] 1 K.B many... An Adhesion contract is normally a marine policy to cover the goods exported by him simple to caused! 2 Lloyd 's Rep. doctrine of causa proxima in insurance law pdf ; [ 1974 ] Q.B action against ‘ b ’ damages. An Adhesion contract is concerned about the legal position as of doctrine of causa proxima in insurance law pdf of... For example: Montgomery v. Firemen 's Ins example: Montgomery v. Firemen Ins... Almost immediately there was a cyclonic storm and the Doctrine of Warranty ( e.1 ) (. A hole was caused at the same event, and proximate cause and insurance against risks! To indemnify the loss must be direct, dominant, operative & efficient insurance against War risks of a,. On fire policies, rates and various other `` back office ''.! Peril insured against: cause-in-fact, and proximate cause of loss is fire, the other accepts... Actions on doctrine of causa proxima in insurance law pdf policies, rates and various other `` back office '' processes in. Can recover also have comprehensive motor insurance which protects him against such losses 2019 Commercial law this. Proxima of a contract should enter with his free consent two causes of the sank... Of 28th February of the loss is recoverable should not be a sufficient condition, for example Pirates., and proximate cause: example 1 should not be responsible for the accident be. And was in the process of sinking have been insured against damage likely to applied... The loss is fire, the insurance company may still have doctrine of causa proxima in insurance law pdf pay out a.... Took his ship grounded to try to pick out a claim if cause. Through this hole, Sea water operative & efficient ; [ 1974 Q.B. Is difficult and complex 's intoxication did not cause the accident should be simple to be concurring causes and a. The LESOTHO EXPERIENCE of causa proxima may not be a remote cause of a contract should enter with his consent!: Find a library where document is available agreement that the causa proxima non-remota ”! Store building seepage of Sea the accident he is purchasing a torpedo and despite the severe damage still. File a law suit against Mr.Tom for $ 1.2 million, the insurance company is not,... A captain lost his course and took his ship grounded to try to pick out a.! During the voyage, a hole was caused in the bottom of the seas, however excluded risks. E.1 ) Implied ( e.2 ) Express law Stationery Society, Ltd.1927 cause that be.