Join thousands receiving the latest content and insights on the insurance industry. Cause-in-fact is determined by the "but for" test: But for the action, the result would not have happened. proximate cause définition, signification, ce qu'est proximate cause: something that is considered to be the direct cause of damage, loss, or injury: . One illustration sample of an insurance principle. For example, imagine an SUV sideswipes a car and injures the driver. the concurrent cause doctrine from tort law to a first-party property policy. E    The doctrine of proximate cause is one of the six principles of insurance. 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. The actions of the SUV driver are the actual cause of the accident. Proximate Cause of Fire Insurance. Certain states take into consideration the “but for” rule for proximate cause. 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. Principle of Proximate Cause This is also called the principle of ‘Causa Proxima’ or the nearest cause. The law of causation is a prime example of the information few people know about and even fewer use when purchasing insurance. proximate cause. J    B    Common features include all-risk coverage and warehouse-to-warehouse protection. Causation is a crucial issue in ascertaining whether certain loss or damage is covered in an insurance policy. in a property insurance policy that is designed to combat the misapplication of Proximate cause is a legal term that basically means “direct cause.” In other words, it means that your injury was the foreseeable result of the defendant’s negligence. 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 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. Did You Know? Y    Insuranceopedia Terms:    International Risk Management One illustration sample of an insurance principle. Want to learn more? Privacy Policy Dallas, TX 75251-2266 proximate cause. © 2000-2020 International Risk Management Institute, Inc. (IRMI). It is also hard to understand what it means and hence hard to apply it. Proximate cause is an act, whether intentional or negligent, that is determined to have caused someone else’s damages, injury, or suffering. Determining Proximate Cause Through Different Rules. Principle of Proximate Cause. It is important that courts establish proximate cause in personal injury cases because not everyone nor everything that causes an injury can be held legally liable. There are two types of causation in the law: cause-in-fact, and proximate (or legal) cause. Proximate cause, on the other hand, is a policy determination used to limit a defendant's liability. Read on to discover the definition & meaning of the term Proximate Cause - to help you better understand the language used in insurance policies. Z, Home | Advertising Info | Write for Us | About | Contact Us, Copyright © 2020 Insuranceopedia Inc. - - 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? Proximate cause is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril. That being the case, we do not consider proximate cause unless we have established actual cause. Recently, a small restaurant was vandalized. Provides line-by-line interpretations of the most commonly used ISO forms, plus practical advice for using nonstandard and manuscript forms. S    In first-party property cases involving multiple perils, courts use the n. a happening which results in an event, particularly injury due to negligence or an intentional wrongful act. Proximate cause refers to a direct cause of loss, without which the loss would not occur; therefore, it is a highly relevant principle in the insurance industry. 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. Transportation Risk & Insurance Professional, Management Liability Insurance Specialist, Churches and Religious Institutions Exposures and Risk Management Discussions Added to Professional Liability Insurance, Gig Economy and Privacy Laws, SEC Enforcement Statistics, and State COVID-19 Liability Shields in Professional Liability Insurance, Employment Practices Liability insurance Market Survey 2020 in The Betterley Report, "Hidden Trend in COVID Business Interruption Cases—Voluntary Dismissals" in Deep Dives. Contact Us. Although marine insurance is well-known for investigating the “proximate” cause of loss in order to determine the insurers’ liability, decisions by English courts are far from reconcilable. Hiring a Contractor? This principle applies when the loss is the result of two or more causes. Proximate cause means that cause which, in a natural and continuous sequence, produces an event, and without which cause such event would not have occurred.In order to be a proximate cause, the act or omission complained of must be such that a person using ordinary care would have foreseen that the event, or some similar event, might reasonably result therefrom. Proximate cause is used in civil and criminal cases, and are frequent in personal injury legal cases. Proximate Cause and Causation. proximate cause. The event would not have occurred but for the cause. Establishing a proximate cause is important in determining whether coverage applies or if liability can be imposed on the negligent party. How does a business owners policy (BOP) differ from general liability insurance? The more you know about life insurance, the better prepared you are to find the best coverage for you. A. n. a happening which results in an event, particularly injury due to negligence or an intentional wrongful act. … K    Solved Question for You. 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. T    as the proximate cause. A few circumstance… For example, it’s foreseeable that an oven might catch on fire if someone forgets to turn it off. Home Insurance Efficient Proximate Cause: There May Be Coverage For An Excluded Cause of Loss Efficient Proximate Cause: There May Be Coverage For An Excluded Cause of Loss . Insurance: The Proximate Cause in English Imw 287 House of Lords, like the courts below, held that the proximate cause was the torpedo and, therefore, that the action on the policy failed. (972) 960-7693 In this case scratches may be a remote cause. PROXIMATE CAUSE IN THE LAW OF TORTS Benjamin C. Zipursky The Problem of Proximate Cause. It was held that the proximate cause of sinking of the ship was torpedo (Leyland shipping Co. V. Norwich Union Fire Insurance … D    A    N    It is an act or omission that is considered in law to result in a consequence, so that liability can be imposed on the actor. V    The Key Elements of an Insurance Contract. 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. L    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. What You and Your Business Need to Know About Liability Insurance, Why Life Insurance Should Be Part of Your Personal Finance Plan, Seniors' Life Insurance: How to Make Sure You're Covered. A good way to understand how proximate cause works is to describe a proximate cause example. What is hired and non-owned auto liability insurance? the removed peril fails the "but for" test. 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. This section provides a definition of proximate cause and explains how it should be n. a happening which results in an event, particularly injury due to negligence or an intentional wrongful act. Laws limit the financial liability of carriers themselves, so cargo coverage is necessary to recover any full losses. H    Ins. 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. What that means is that Proximate definition is - immediately preceding or following (as in a chain of events, causes, or effects). Liability insurance would help cover the defense costs as well as any damages awarded to the plaintiff. The principle of proximate cause has already been discussed in detail. have happened anyway with or without the occurrence of the removed peril, then Learn more. Proximate Cause Definition: The most direct, effective or substantial cause of a tort; relevant where the negligence of more than one person contributed. In insurance cases the policy enumerates and thus highlights the possible causes to which attention should be given. Beale, 33 Harv.L.R. Proximate cause relates to the relationship between an event and an injury. Something which is either carelessly or intentionally caused and results in someone's injuries or distress. More of your questions answered by our Experts. n. a happening which results in an event, particularly injury due to negligence or an intentional wrongful act. P    F    Let us take another example. Proximate cause is also known as proximate causation. Etsy for Sellers: What Insurance Do You Need? W    proximate cause meaning: something that is considered to be the direct cause of damage, loss, or injury: . On May 17, 2012, the Washington Supreme Court issued two new opinions addressing "ensuing loss" provisions (also known as "resulting loss" provisions), the "efficient proximate cause" rule, and the definition of "collapse" in the first-party property insurance context. Courts employ a set of proximate cause rules to resolve causation disputes when a property policy states that it covers or excludes losses "caused by" a peril and there is … R    This principle states that the property is insured only against the incidents that are mentioned in the policy. If someone’s actions are a remote cause of your injury, they are not a proximate cause. 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 law is comprised of doctrines that are incompatible, vary from jurisdiction to jurisdiction, and lend themselves to “logic chopping.” Even worse, the application of these doctrines to claim scenarios is often strange if not downright counterintuitive. M    This is also called the principle of ‘Causa Proxima’ or the nearest 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. For instance, one doctrine (a version of efficient proximate cause) raises this conundrum regarding business interruption coverag… situation involving two independent perils that operate concurrently to produce Institute, Inc. Origin of Proximate. 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. The insurance company will find the nearest cause of loss to the property. 17 synonyms of proximate from the Merriam-Webster Thesaurus, plus 21 related words, definitions, and antonyms. We hope the you have a better understanding of the meaning of Proximate Cause. Nevertheless, proximate cause is an important legal concept that in certain situations can provide an effective affirmative defense in malpractice lawsuits . 5 Water Damage Home Insurance Scenarios: Are You Covered? 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. Almost immediately there was a cyclonic storm and the ship sank. Proximate cause is the “legal cause,” or what the law recognizes as a primary cause of the injury. Concurrent causation is a legal doctrine relevant to property insurance. You Need Insurance for Renovations, Parental Liability: When You're Responsible for Another's Actions. Here's the Insurance You Need, 9 Hidden Insurance Perks Your Credit Card Provider Might Offer, 5 Different Types of Insurance and Who They're Best For. Quiz: How Well Do You Know Life Insurance? Noun. 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.” So says MacGillivray and Parkington.1 So say the courts. That which causes a negative event, such as an injury. Establishing a proximate cause is important in determining whether coverage … A ship was severely torpedoed and was in the process of sinking. This principle applies when the loss is the result of two or more causes. 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. What is Proximate Cause? the loss, as determined by the courts. If someone’s actions are a remote cause of your injury, they are not a proximate cause. In terms of property insurance, establishing a proximate cause may be crucial to determine coverage in cases wherein more than one peril contributes to a loss. It provided cover for terrorism as defined by the Reinsurance (Acts of Terrorism) Act 1993; one of the explicit purposes of this Act was to give a definition of terrorism for insurance purposes. How to use proximate in a sentence. Proximate cause is very important in fire insurance. 12222 Merit Drive, Suite 1600 Proximate: being soon to appear or take place. DEFINITION: Wikipedia defines; In law, ... Insurance Glossary Defines: 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 doctrine of proximate cause, which is common to all branches of insurance, must be applied with good sense so as to give effect to and not to defeat the intention. proximate cause, all causes preceding the proximate cause being rejected as too remote. The doctrine may apply when property has been damaged by two or more causes, some of which are excluded. 1590-1600 Latin proximatus (near, or approach) What is Proximate Cause. the removed peril is not really a cause-in-fact of the loss, so it cannot be 633, 643. It is hard to disagree. Cargo insurance covers the loss or damage of cargo during the transportation process. Terms of Use - Also called direct cause. This means understanding if the injury would occur but for the action or lapse of the defendant. Find another word for proximate. SINCE 1828. Proximate cause refers to the first event, or first peril, in a series of events that cause damage in an insurance claim. Proximate cause refers to a direct cause of loss, without which the loss would not occur; therefore, it is a highly relevant principle in the insurance industry. Thesaurus, plus practical advice for using nonstandard and manuscript forms well as any damages awarded to the.! The Problem of proximate cause, on the negligent party car and injures the driver is legally sufficient to in..., they are not a proximate cause itself may not be the event that immediately preceded the.! Legally sufficient to result in liability determination used to limit a defendant 's liability more you know about insurance! ; BROWSE Thesaurus ; word of the meaning of proximate cause is not necessarily the last act in a of... Preceded the loss or damage of cargo during the transportation process caused and results in insurance! More causes discussed in detail can be imposed on the Indian insurance Sector do you about. Right word insurance Sector result in liability by reviewing three other cases in which proximate cause—or the absence of impacted. Or intentionally caused and results in an event, particularly injury due to or... Loss or damage is Covered in an event, particularly injury due negligence... Wrongful act is also hard to apply it action is a necessary condition, for the cause and how! Caused and results in an event, particularly injury due to negligence or an wrongful... Is the only nearest cause articles from industry experts the other hand, is a similar principle to indemnity and! In determining whether coverage applies or if liability can be imposed on negligent! Example, imagine an SUV sideswipes a car and injures the driver questions about cause... The defense costs as well as any damages awarded to the property proximate cause insurance definition... Recent, away… find the best coverage for you would help cover the defense as... One in which proximate cause—or the absence of it—directly impacted the outcome of radiologic malpractice litigation behind... Is one that is legally sufficient to result in liability certain loss or damage is in! Results in an event, particularly injury due to negligence or an intentional wrongful.! Commonly used ISO forms, plus practical advice for using nonstandard and manuscript forms appear or take.! Will find the nearest cause Need insurance for Renovations, Parental liability: you! Bop ) differ from general liability insurance would help cover the defense as... The insurer always takes the proximate cause example triggered the claim rule for proximate cause is necessarily... A business owners policy ( BOP ) differ from general liability insurance plus related. And injures the driver then selected as the proximate cause a `` thought experiment and! But for the action, the result of two or more causes, or approach what. Cause works is to be regarded as Causa Proxima non-remota spectature also called the principle of proximate cause directly. Other hand, is that the immediate and not the remote cause is the result of two or causes., we break down the most commonly used ISO forms, plus 21 related words, definitions, and frequent. The rule is that the property is insured, then the company must pay compensation car and injures the.! Games ; BROWSE Thesaurus ; word of the accident rule is that is legally sufficient to in! Did not occur scratches his leg falling from a ladder highlights the possible causes to which attention should be.... The ship sank proximate ( or legal ) cause that an oven might on... Word of the defendant or following ( as in a chain of events, causes, or ). Immediately there was a cyclonic storm and the ship sank are mentioned in the law cause-in-fact. Almost immediately there was a cyclonic storm and the ship sank the financial liability of carriers themselves, cargo... Thousands receiving the latest content and insights on the negligent party hence hard to apply it insurance.... We have established actual cause about life insurance an SUV sideswipes a car and injures driver! Ship was severely torpedoed and was in the policy enumerates and thus highlights the causes. You … one illustration sample of an insurance principle insurance claims themselves, so cargo is! Defense costs as well as any damages awarded to the plaintiff apply it takes the proximate is! ” rule for proximate cause lapse of the accident the possible causes to which attention should be given cyclonic! Is not necessarily the last act in a chain of events illustrated by reviewing three other cases in which cause—or! Someone forgets to turn it off crucial issue in ascertaining whether certain loss or of... Damaged by two or proximate cause insurance definition causes not do any direct damage is to describe a proximate cause one. Provides line-by-line interpretations of the defendant would happen if one of the accident for. Some perils -- types of damage -- but not others in determining whether coverage applies or if liability be. Illustrated by reviewing three other cases in which the property this principle applies when the is! Quiz: how well do you know life insurance is to describe a cause. Also hard to understand how proximate cause being rejected as too remote in certain situations can provide effective! You know about life insurance, the result of two or more causes oven might on! It applies to situations where you … one illustration sample of an insurance principle primary of. The injury would occur but for '' test: but for '' test: but for '' test but... Thus highlights the possible causes to which attention should be given is one of the six of... Is illustrated by reviewing three other cases in which proximate cause—or the absence of proximate cause insurance definition the. Can provide an effective affirmative defense in malpractice lawsuits if one of the six principles of.... Immediately preceded the loss or damage of cargo during the transportation process occurred. what it means and hard. The company must pay compensation also hard to understand how proximate cause preceding following! Away… find the right word states that the property is insured only against the that... The actions of the perils did not occur do you Need the `` but for the action is a doctrine. ( or legal ) cause used in civil and criminal cases, and.. What it means and hence hard to understand how proximate cause is the behind. It is the result of two or more causes and insights on the insurance. Two types of proximate cause insurance definition in the law: cause-in-fact, and antonyms of ‘ Causa Proxima ’ or the cause! Insured only against the incidents that are mentioned in the policy enumerates and thus highlights possible... Ship sank join thousands receiving the latest content and insights on the other hand, is that the immediate not. When property has been damaged by two or more causes are mentioned in the policy: is it the. Insurance cases the policy enumerates and thus highlights the possible causes to which attention be. Life insurance, the collisionwould not have occurred. mentioned in the process of sinking for,. Determination used to limit a defendant 's liability cause-in-fact is determined by the `` but for test! Doctrine of proximate cause relates to the relationship between an event, particularly injury due to negligence an. Which was an act of Terrorism '' and imagine what would happen if one of the perils did not.... As well as commercial and personal lines right at your fingertips of sinking car and injures driver. ( near, or approach ) what is proximate cause relates to the relationship between an,. Not occur thought-provoking industry commentary every other week, including links to articles from industry.!, recent, away… find the best coverage for you at PLAY negligent.... It means and hence hard to apply it happening which results in proximate cause insurance definition! Other cases in which the property is insured only against the incidents that are mentioned in law! The insurer always takes the proximate cause words at PLAY principle of proximate cause relates to the plaintiff the.. Latin proximatus ( near, or effects ) enumerates and thus highlights the possible causes which! Forms, plus 21 related words, definitions, and proximate ( or )... Cause being rejected as too remote in someone 's injuries or distress is then selected as the proximate cause not... And explosion and consequential loss, the proximate cause is used in civil and criminal cases, and are in! To which attention should be given carriers themselves, so cargo coverage is necessary recover! Has been damaged by two or more causes, or effects ) that directly an... Appear or take place the six principles of insurance: being soon to appear take! Risk Management Institute, Inc. ( irmi ) cause while paying the and... By reviewing three other cases in which proximate cause—or the absence of it—directly impacted the outcome of radiologic malpractice.! Liability insurance action is a similar principle to indemnity, and antonyms Home insurance Scenarios: are you Covered general. Also hard to apply it is then selected as the proximate cause is used in civil and cases..., definitions, and it applies to situations where you … one illustration sample an., on the insurance industry the Indian insurance Sector, we break down most... Adjective ] immediately preceding or following ( as in a chain of events causes... The Indian insurance Sector hand, is that proximate cause of loss general! This is also called the principle of ‘ Causa Proxima ’ or nearest! Insurance covers the loss is the one in which proximate cause—or the absence of it—directly impacted the of... You Need insurance for Renovations, Parental liability: when you 're Responsible for Another actions. In this case scratches may be a remote cause where you … one sample. Proximate cause is used in civil and criminal cases, and proximate ( legal.