This principle consists of, to find one or more reasons for the cause, and the nearest cause should be taken into account to decide the liability of the insurer. The maxim is “Sed causa proxima non-remota spectature” i.e. There are two types of causation in the law: cause-in-fact, and proximate (or legal) cause. The company will not get compensation because mangoes were not spoiled in accident. So the insurance company was liable to pay for the loss. Principle of proximate cause: Proximate cause literally means the ‘nearest cause’ or ‘direct cause’. This case is related to the principle of Causa Proxima. Cause-in-fact is determined by the "but for" test: But for the action, the result would not have happened. The mangoes got spoiled due to delay in unloading and loading. It is because of principle of causa proxima. (ii) Principles (a) Principle of utmost. This principle is applicable when the loss is the result of two or more causes. good faith (b) Principle of insurable interest (c) Principle of indemnity (d) Principle of contribution (e) Principle of subrogation (f) Principle of causa proxima (g) Principle of mitigation of loss. The ship was insured under a policy that covered perils of the seas, however excluded war risks. 6. This case is related to the principle of Causa Proxima. The real cause of the loss must be considered while payment of … The property may be insured against some causes and not against all causes, in such as … Zigya App. If … 7. Causa Proxima. Proximate cause is a key principle of Insurance and is concerned with how the loss or damage actually occurred. The following case, Leyland Shipping v. Norwich Union Fire Insurance Society Ltd (1918) illustrates that the causa proxima may not necessarily be the last event to occur. The proximate cause means; the most dominant and most effective cause of loss is considered. If the goods would have been destroyed by the rats then the … Types of Insurance. Insurance contracts are of following types Principle of Cause-Proxima (nearest cause: - Principle of Causa-Proxima means when a loss is caused by more than one causes, the proximate (nearest) cause should be taken into consideration to decide the liability of the insurer. Causa Proxima is a Latin phrase, which means proximate cause. The rule is that immediate and not the remote cause is to be regarded. Example: A trawler vessel was insured against losses resulting from … see the proximate cause and not the distant cause. 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 … CBSE Class 11 Business Studies - Priciples of Insurance ... PROXIMATE CAUSE(CAUSA PROXIMA):-According to this principle,when the loss is the result of two or more causes,the proximate cause of loss should be taken into consideration.The insurance company is not liable for the remote cause.e.g. PRINCIPLE OF CAUSA PROXIMA (NEARESTCAUSE) For example :- A cargo ships base was punctured due to rats and so sea water entered and cargo was damaged. 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. ( For … In principles of insurance, a principle of Principle of causa proxima is the fundamental principle. The nearest cause for the loss was the water which entered in the ship because of which the goods got destroyed. Principle #7 – Principle of Causa Proxima (Nearest Cause) This is a very important principle of insurance which an insured person should be aware about. 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