CHAPTER 6 PROXIMATE CAUSE 2% OF THE EXAM

PROXIMATE CAUSE When deciding whether to pay out a claim insurers will ask two questions: Was the insurance contract in force at the time of loss? Was the loss caused by an insured peril?

Proximate Cause

WHAT IS PROXIMATE CAUSE? Proximate Cause = Dominant Cause Is there a break in the train of events? Novus actus interveniens (new intervening act)

PROXIMATE CAUSE - EXAMPLE A chip pan fire breaks out in a residential flat that is above a shop. The fire brigade are called and successfully extinguish the fire using water. One result of this is that the water they used caused damage to stock in the shop below. What would be the proximate cause of the damage to the stock? Cooking chips Fire Location of the stock Water

PROXIMATE CAUSE - EXAMPLE A chip pan fire breaks out in a house. A shopkeeper who occupies the building next door raises the alarm and provides first aid to people who were injured in the fire. A crowd of onlookers arrive and delay the arrival of the fire brigade and an ambulance. Whilst this is taking place, looters take the opportunity to enter the now unattended shop and steal stock from it? What would be the proximate cause of the loss of stock? Fire Late arrival of the emergency services Shopkeeper leaving the shop unattended Theft

Roth v South Easthope Farmers Mutual Insurance Co. 1918

Gaskarth v Law Union Insurance Company 1876

Perils Insured Perils Those named in the policy as covered Excepted or excluded perils Those named in the policy as specifically not covered Uninsured or unnamed perils Those perils not mentioned at all on the policy

Etherington v Lancashire and Yorkshire Accident Insurance Company 1909

PROXIMATE CAUSE - EXAMPLE Following a football match, 200 rival fans riot in the street setting fire to cars and breaking shop windows. The window of a boutique is broken and smoke from a burning car outside damages the stock. What would be the proximate cause of the damage to the stock? The Football Match The Riot The Fire from the Cars The Breakage of the Boutique Window

What is always the proximate cause of a loss? Dominant cause First cause Insured cause Last cause

What is always the proximate cause of a loss? Active efficient cause Excepted cause Insured cause Uninsured cause

A man falls from a cliff and breaks his leg A man falls from a cliff and breaks his leg. He lies in cold and damp conditions for many hours before he is found and taken to hospital. As a result of lying in the ditch he contracts pneumonia from which he dies. What was the proximate cause of his death? Accident Damp and cold conditions Delay in finding him Pneumonia

A man falls from a bicycle whilst riding in the countryside A man falls from a bicycle whilst riding in the countryside. He breaks his leg when he lands in a cold and damp ditch? It is many hours before he is found and taken to hospital. Whilst in hospital he contracts an infection as a result of treatment he received and he died as a result of this. What was the proximate cause of his death Accident Damp and cold conditions Delay in finding him Infection