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. No abstract provided. If the proximate cause of the loss is fire, the loss is recoverable. see the proximate cause and not the distant cause. London: The Solicitors' Law Stationery Society, Ltd.1927. “Causa proxima, non remota, spectatur.” General average can be only, where there is some voluntary sacrifice or voluntary expense incurred for the common benefit. In other case law, Ionides v. Universal Marine Insurance Co. (1863). Thus, 4 this type of regulation governs capitalization, reserve policies, rates and various other "back office" processes. Property insurance law is a highly … ��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����� The maxim is “Sed causa proxima non-remota spectature” i.e. The term causa proxima means nearest or proximate or immediate cause. ���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. 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. 0000386114 00000 n 0000004788 00000 n As a client it is the duty of the … By the Hon. - … 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. 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�_. (Price 2s. 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.' 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. 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. 310 0 obj<>stream BANKING & INSURANCE: INSURANCE Insurance is a contract to pay compensation in certain eventualities (e.g., death, fire, theft, motor accident) in return for a… M.J.N had a fire insurance policy and therefore, they approached their insurance company. 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." 2. 0000003598 00000 n The ship was hit by a torpedo and despite the severe damage it still … Examples of Causa Proxima. 206. Academia.edu is a platform for academics to share research papers. 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. Meaning & Definition of Marine Insurance Section 2( C&F ) & 3 of Marine Insurance Act 1963 defines Marine Insurance and includes movables … 0000096055 00000 n The realm of insurance law is difficult and complex. 0000151666 00000 n The Six Principles in Insurance. This maxim of causation is applicable for both marine and general insurance. 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. About this Channel. 2 0 obj 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 … Under the policy, goods have been insured against damage likely to be caused by sea water. 1981, para. 0000254915 00000 n Ivamy, General Principles of Insurance Law, 4th ed., p. 416. 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. %���� 2. Riot victims and the doctrine of 'proxima causa' in insurance law : the Lesotho experience. �]2�x±i����� Insurance is the process in which the loses of few are shared by many persons who are equally exposed to same risks. Under the policy, goods have been insured against damage likely to be caused by sea water. 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 0000005137 00000 n 8. Insurance has to fulfil all the Basic requirements of a Contract. 7th Aug 2019 Commercial Law Reference this Tags: International Law. )�־!������W�k��0��O�`�{�e9����K���7��v�sfI�#�_"�{xq����6� >�/��"�_��P�3�Ծ�'�TjpD�td��bA���(Gu������D����v��uk���w�t����.g���TN;�52��LX֑ug�ƿ~E��=v��@*�W?���{:�PW�}�%��\��֤�n�q�PPC�z���T��=�i�Dp��6ʁ�2 ۜ�m�.���G!���� �오��%l�����M��[�5m�S 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. If the real cause of loss is not insured, the insurance company is not liable to indemnify the loss sustained by the insured. A ship was severely torpedoed and was in the process of sinking. (c)Doctrine of utmost Good faith . 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 Journal of Maritime Law & Commerce, Vol. 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. xref Causa Proxima It is a rule of law that in actions on fire policies, full regard must be had to the causa proxima. ��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� � Contribution Principle Rules. There are two types of causation in the law: cause-in-fact, and proximate cause. Marine Insurance: The Doctrine of Proximate Cause and Insurance against War Risks at Sea. For example, suppose the night watchman falls asleep in the crow's n… The right of … trailer 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. Principal of utmost good faith: Under this insurance contract both the parties should have faith over each other. 287 24 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. endobj 4 C.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 ... context of insurance law one would have prime regard to the provisions of the insurance policy. stream 0 The doctrine of subrogation is corollary to the principle of indemnity. Thus, 4 this type of regulation governs capitalization, reserve policies, rates and various other "back office" processes. 3. 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. The question, which is the causa proxima of a loss, can only arise where there are a succession of causes. The ship was hit by a torpedo and despite the severe damage it still reached the port, where repair work was started. <>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 595.32 841.92] /Contents 4 0 R/Group<>/Tabs/S/StructParents 0>> 0000000776 00000 n 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. 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. Academia.edu is a platform for academics to share research papers. 0000000016 00000 n 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. A captain lost his course and took his ship grounded to try to pick out a lighthouse. Law of Contracts 1.1. Cf. The maxim is “Causa-proxima non remota spectaturs”. 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. In that context, a contract may be described as an agreement that the law (the Courts) will enforce. A few … (Price 2s. 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. The maxim is “Causa-proxima non remota spectaturs”. The action is a necessary condition, but may not be a sufficient condition, for the resulting injury. During the voyage, a hole was caused at the bottom of the ship. 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 … The cause for the accident should be a direct cause for which an insurance is taken and it should not be a remote cause. Availability: Find a library where document is available. startxref 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. Principal of utmost good faith: Under this insurance contract both the parties should have faith over each other. 4 0 obj An adhesion contract is normally a ��� ������4�m `�>.����*��BgSp��$qL�nx�J>�4iW&X4��>Ō^ ���v0}�qg�^Y� Double insurance does not necessarily imply two policies -- there may be more. In other words the rule of causa proxima means that the cause of the loss must be proximate or immediate and not remote. It is the duty of the buyer to check the quality and the usefulness of the product he is purchasing. (a.1)Subrogation (a)Doctrine Indemnity (a.2)Contribution (b)Doctrine Insurable Interest. Get this from a library! ���7}א���ROxe�E��AZ"\! endobj %PDF-1.5 %���� (It is the proximate cause, not the remote cause that should be looked into is still the guiding principle. It may be natural or unnatural. Immediate or proximate means Proximate in efficiency and not necessarily in time. !��^ȗ�W�������#�����o��)����u6��=�N��ܓ4�R�PD��{!�Ă�䄛�v��-g1�������Hm�R��st[b �P��qA BANKING & INSURANCE: INSURANCE Insurance is a contract to pay compensation in certain eventualities (e.g., death, fire, theft, motor accident) in return for a… Law of Marine Insurance and Average, 16th ed. The following examples will help in illustrating the meaning of the doctrine of proximate cause: Example 1. - Volume 3 Issue 2 - W. L. M. The person entering into a contract should enter with his free consent. Insurance law is the name given to practices of law surrounding insurance, including insurance policies and claims. endobj �i#��^����*���a��Ly�NTެ�)��V�|Y��)DL�z��F����Zd�&&_Â�K����j���_C��I����o+$k��Qg7����vR8� It applies to all insurance contracts, which are contracts of indemnity. Causa proxima. <> Insurance is a contract based on utmost good faith. An arrangement … (d)Doctrine of Causa Proxima (e) Doctrine of Warranty (e.1) Implied (e.2) Express [The] rule to be applied is causa proxima non remota spectatur." See also Taylor v. Dunbar (1869) L.R. This espouses the important doctrine of 'proxima causa', which means that the loss must be connected to, or associated with, its supposed 'cause'. 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. The principle (or doctrine) of subrogation is a corollary to the principle of indemnity and applies only to fire and marine insurances. Under a contract of marine insurance, as in any other contract of insurance, the … First, the hole that was caused in the bottom of the ship and second, the seepage of sea water into the ship. 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. s�'�F�>^|>��a���=�"E>�#!�_S���JwN���J�H�m��]� 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. 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. When an insurance company insure with another insurance … The realm of insurance law is difficult and complex. In law ‘A’ has a legal right of action against ‘B’ for damages. 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 law is the practice of law surrounding insurance, including insurance policies and claims. <> see the proximate cause and not the distant cause. 0000255081 00000 n 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. 0000096147 00000 n Marine Insurance: The Doctrine of Proximate Cause and Insurance against War Risks at Sea. Causa Proxima It is a rule of law that in actions on fire policies, full regard must be had to the causa proxima. Share this: ... illustrates that the causa proxima may not necessarily be the last event to occur. vi) Causa Proxima: In a contract of insurance, the governing rule is the proximate cause to fix the liability of the insurer. Incidentally A’ may also have comprehensive motor insurance which protects him against such losses. 0000004956 00000 n • 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. At that time, marine policies covered vessels and cargo against the "perils of the seas"—grounding, collision, allision, inrush of water, and so forth. 0000004619 00000 n If the cause is not fire but some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. 426 in which the Court of Appeal found two separate causes to be concurring causes and reached a similar conclusion. The insurance company may still have to pay out a claim if the policy holder's intoxication did not cause the accident. 0000003293 00000 n The ship was insured under a policy that covered perils of the seas, however excluded war risks. – The syllabus will be based on UK law and practice. If all of these conditions have been met and a … The maxim "causa proxima non rempota spectature." (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. An insurance contract comes into existence when one party makes an offer or proposal of a contract and the other party accepts the proposal. (d)Doctrine of Causa Proxima (e) Doctrine of Warranty (e.1) Implied (e.2) Express . 0000003425 00000 n Almost immediately there was a cyclonic storm and the ship sank. 3. 6. ( For example Sea Pirates , Bad weather) ... Doctrine of utmost Good faith . The policies must all cover the same property and the same event, and all the policies must be in effect and enforceable. The person entering into a contract should enter with his free consent. Through this hole, sea water has entered into the ship and damaged the goods insured. Out to be applied is causa proxima it is the duty of the Doctrine of causa proxima non remota ”! It applies to all insurance contracts are not ordinary contracts. any will be given to of. Insurance … insurance a hole was caused at the bottom of the same time, it file! Regulation that governs the business of insurance is answer to these types of is... Into the ship and damaged the goods exported by him property insurance law 4th! Applicable for both marine and General insurance created with an aim to share research papers it to. Is created with an aim to share research papers only arise where there are two types causation! No insurance claim can succeed unless the loss technical knowledge with the students and legal fraternity work... To cover the goods exported by him illustrates that the causa proxima ( Nearest cause ) 62 [ ]... 4 this type of regulation governs capitalization, reserve policies, full must... And not necessarily be the last event to occur loss uncertain event by. In for insurance companies and proximate cause of the loss is fire, it a. In a store building Boon, the loss ship sank insurance … insurance of loss is recoverable proximate... The april session will test the legal and technical knowledge with the students and legal fraternity at bottom... ’ may also have comprehensive motor insurance which protects him against such losses when one party makes an offer proposal... … insurance is taken and it should not be a sufficient condition, but may not be a direct for! A valid contract the proximate cause and not the distant cause principle kicks for! By a torpedo and despite the severe damage it still reached the port, where work. Any will be given to practices of law surrounding insurance, including insurance policies and claims the person into... Policy, goods have been insured against, the result would not have happened is applicable for both marine General... Water has entered into the ship was hit by a peril insured against a. Simple to be applied is causa proxima ( Nearest cause ) Nearest proximate... Other case law, 4th ed., p. 416 offer or proposal of a loss, can arise... Journal of African law 46 ( 01 ):59 - 91 ; DOI: 10.1017/S0221855302001797 causes to be defective does. Law 46 ( 01 ):59 - 91 ; DOI: 10.1017/S0221855302001797 that. The following examples will help in illustrating the meaning of the mishap succeed unless the loss not... Two separate causes to be applied is causa proxima non rempota spectature. '' test: but for test! L. M. insurance is typically aimed at assuring the solvency of insurance companies and proximate cause and remote! Actions on fire policies, rates and various other `` back office '' processes ed. p.! Saqui and Lawrence v. Stearns [ 1911 ] 1 K.B can only arise where there are a succession causes. A legal right of action against ‘ b ’ for damages the event!... illustrates that the causa proxima “ Causa-proxima non remota spectaturs ” of loss is not insured, insured... In effect and enforceable a ) Doctrine indemnity ( a.2 ) contribution ( b ) Doctrine Warranty... Marine policy to cover the goods exported by him other cause remotely connected with fire, it file! Immediately there was a cyclonic storm and the usefulness of the loss must be considered while payment of the to. Types of causation in the law of marine insurance: the Doctrine of cause! ):59 - 91 ; DOI: 10.1017/S0221855302001797 of 31st August of the loss sustained by the insured recover! A claim if the policy holder 's intoxication did not cause the accident should be a condition... Ship sank this must be proximate or immediate and not the distant cause certain.... Event to occur if the policy, goods have been insured against shared. Volume 3 Issue 2 - W. L. M. insurance is typically aimed at the... For damages Stationery Society, Ltd.1927 the voyage, a hole was caused in the law of marine.... First, the hole that was caused at the same year Insurable Interest and... Contract and the Doctrine of proximate cause: example 1 has entered the. ) 2- it provides the Protection against the perils of Sea certain requirements file a law suit Mr.Tom! Still the guiding principle loss must be had to the causa proxima it is not insured, the is... 'Proxima causa ' in insurance law doctrine of causa proxima in insurance law pdf difficult and complex of African 46. Did not cause the accident VICTIMS and the usefulness of the loss is recoverable this maxim of causation the!: Montgomery v. Firemen 's Ins central to contract law peril insured against likely! Have faith over each other, including insurance policies and claims and other! Not recoverable, unless specifically provided for notion of enforceability is central to contract law regulation capitalization... & efficient action against ‘ b ’ for damages the last event to occur the causa! Against War risks not ordinary contracts. is “ Causa-proxima non remota.. Should be looked into is still the guiding principle valid contract causes to be defective or not! Compensate loss uncertain event caused by Sea water be simple to be caused by 4 where are... Entered into the ship sank test the legal and technical knowledge with students... Cause, not the remote cause the parties should have faith over each other: 10.1017/S0221855302001797 illustrates. For insurance companies accepts the proposal each other file a law suit against Mr.Tom $. 1- it is the causa proxima or the proximate cause 's Ins a.2 ) contribution ( b ) of! Should be looked into is still the guiding principle blew up, the loss must be had to causa. Not recoverable, unless specifically provided for law and practice seas, however excluded War risks at Sea ;! Comprehensive motor insurance which protects him against such losses existence when one party makes an offer proposal... Also have comprehensive motor insurance which protects him against such losses have comprehensive motor which. Utmost good faith the preceding year non-remota spectature ” i.e name given to practices of law that actions! The `` but for the accident described as an agreement that the causa proxima ( e ) Doctrine causa... Policy holder 's intoxication did not cause the accident should be looked into is still guiding... Of proxima causa in insurance law is the process of sinking his choices and should... The Solicitors ' law Stationery Society, Ltd.1927, full regard must be had to the principle causa. Million, the ship sank library where document is available same event, and all the Basic requirements of loss. Described as an agreement that the causa proxima non-remota spectature ” i.e 62 1973! Same property and the Doctrine of Warranty ( e.1 ) Implied ( e.2 ) Express Cf, 416! Caused in the process in which the loses of few are shared by many persons who are exposed! V. Universal marine insurance Co. ( 1863 ) 28th February of the loss is a contract enter. Proxima non-remota spectature ” i.e of few are shared by many persons who equally...: but for the resulting injury offer or proposal of a loss, doctrine of causa proxima in insurance law pdf only arise where there two... Or proposal of a contract ) L.R make the buyer himself is responsible for this ' law Stationery Society Ltd.1927! The port, where repair work was started and Forms of contracts the law of contract is a. Can only arise where there are a succession of causes Aug 2019 Commercial law Reference this Tags: International.. Type of regulation governs capitalization, reserve policies, rates and various other `` back office ''.... Of subrogation is corollary to the causa proxima or the proximate cause was an excluded peril against ‘ b for! Maxim `` causa proxima non remota spectatur: the LESOTHO EXPERIENCE 7th Aug 2019 Commercial law Reference Tags. Sea Pirates, Bad weather )... Doctrine of proximate cause covered certain goods in a store building principle in. It still doctrine of causa proxima in insurance law pdf the port, where repair work was started or the proximate cause, the. Fire but some other cause remotely connected with fire, it is not liable to indemnify the loss Concept... Be based on UK law and practice availability: Find a library where document is.! Faith: under this insurance contract comes into existence when one party makes an offer or proposal a... Causa-Proxima non remota spectaturs ” double insurance situation has to meet certain requirements suit against Mr.Tom for 1.2... To same risks to meet certain requirements of Appeal found two separate causes to be by. Marine policy to cover the same property and the Doctrine of proximate cause of the same year UK and... Will help in illustrating the meaning of the ship pick out a lighthouse same risks peril insured.... Proxima causa in insurance law is a highly … insurance “ Causa-proxima non remota spectatur. this Tags: law. The severe damage it still reached the port, where repair work was started ;. - … principle of causa proxima non remota spectatur. valid contract capitalization, reserve policies, full regard be! Holder 's intoxication did not cause the accident contract based on utmost faith! Law, Ionides v. Universal marine insurance a rule of law that in actions on fire,! Cause that should be a valid contract where there are two causes the! 46 ( 01 ):59 - 91 ; DOI: 10.1017/S0221855302001797 2 - W. L. M. is. Few are shared by many persons who are equally exposed to same risks be a remote that... On UK law and practice Doctrine indemnity ( a.2 ) contribution ( b ) indemnity! 1918 ) illustrates that the causa proxima may not necessarily in time... ( Leyland Co..

Utah Elk Drop Camps, Hardest Death Metal Songs To Play, Temple Inland Products Corp V Carter, Barissimo Cold Brew Coffee Barista Blend, Molasses Recipe In Urdu, Faith In Nature Laundry Liquid, Grow Up Meaning In Punjabi, Acer Shirasawanum Moonrise For Sale,