Abstract
The rule of Causa promixa (proximate cause) is derived from a latin phrase causa proxima non remota spectator (the immediate, and not the remote cause is to be considered). This article highlights the significance of the rule of causa proxima which is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed a result of an insured peril. It primarily discusses about the emphasis laid on the test of proximate cause in Insurance Law, in order to identify the causation of the loss or damage. It makes an effort to substantiate the subject matter by looking into the trends of interpretation of the rule, including in countries like the United Kingdom, the United States, India and Canada.
Highlights
‘Insurance is a method of spreading over a large number of persons a possible financial loss too serious to be conveniently borne by an individual.’
It primarily discusses about the emphasis laid on the test of proximate cause in Insurance Law, in order to identify the causation of the loss or damage
It was held that the proximate cause of damage being the sea water and rat being the remote cause, the insured cargo was entitled to damages
Summary
‘Insurance is a method of spreading over a large number of persons a possible financial loss too serious to be conveniently borne by an individual.’. Much refinement is needed in this subject It is an established understanding in insurance law that causa sine qua non or remote cause of loss is generally irrelevant. This is embodied in the heart of the maxim causa proxima non remota spectator. Thomes& Mersey Marine Insurance Co9 in which, L.J Smith, after acknowledging the fact that remote causes were generally inconsequential, reminded the court that the maxim causa proxima non remota spectator was qualified by a well established legal maxim dolus circuitu non purgatur, which means that a loss, even though proximately caused by a peril insured against, would not be recoverable if it was occasioned albeit remotely by the wilful misconduct of the assured. Cause here means what a business or seafaring [person] would take to be the cause without too microscopic analysis but on a broad view’
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