Proximity cause in insurance essay

There is an earthquake fire somewhere near the insured building. There was a fire in the insured premises as a result of which the walls lost strength, but nevertheless were standing.

If the cause of loss peril is insured, the insurer will pay, otherwise, the insurer will not compensate. However, this is not an example of proximate cause because, even though the leaves were the catalyst for the accident, they cannot be sued in a court of law, nor can they be required to pay for the damages they caused.

Proximate cause produces particular, foreseeable consequences without the intervention of any independent or unforeseeable cause.

Proximity cause in Insurance Essay Sample

Another example that proves that correlation does not imply causation can be found in windmills and wind speed. A railroad employee on the train and another railroad employee on the platform pushed and pulled at the man, trying to get him onto the train.

Let us take another example. Palsgraf, belong to that class of people? To take another example, a man riding a horse in a lonely hilly place falls from the horseback, gets an injury and remains unconscious the whole Proximity cause in insurance essay under exposure to severe cold.

The group discovers that Roger always goes boating at Star Lake on Saturday mornings. It could be assumed that windmill rotation causes wind, and that the faster the windmill rotates, the more wind there is causationbut this is actually not true.

The exploding fireworks scared the crowd on the platform, and one person in the crowd tipped over a heavy set of scales.

As the train began to move, the man leapt onboard, but had trouble balancing. Finally, courts looking at proximate cause will ask whether the plaintiff herself is among the people the defendant could have reasonably foreseen would be injured by his actions.

As it happened, the man was carrying a package of fireworks, which fell out of his hands as the railroad workers jostled him and exploded when it hit the ground.

On the other end of the same platform, a man raced to board a departing train. When a single cause gives rise to a claim the issue is simple. It held that proximate cause did not exist because the railroad workers would not reasonably have foreseen that Mrs.

However, if excepted peril is involved with insured peril then if the effects of excepted peril can be separated from that of the insured peril then there is a liability for the loss caused by the insured peril.

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 the hospital and contacted cholera as such.

Can legal blame be placed on Tom for simply being in a place, distracting the driver? At the other end of the platform, a man was running to board a train. More so, the position gets further complicated when an insured peril is followed up by an excepted peril or an excepted peril is followed up by an insured peril, simultaneously getting mixed up by uninsured perils.

Proximate Cause in Insurance, Marine Insurance, Life Insurance, Examples

In accident benefit policy, double of the policy amount is paid. This relation is referred to as the doctrine of proximate cause. It is true, however, that the blowing wind causes windmills to turn.

For instance, could the railroad workers have known that pedestrians on the platform may have been harmed by their actions?

Proximate Cause

Also, the defendant may be liable even if the injury that occurred was unlikely, as long as a reasonable person would have taken steps to prevent that kind of injury from occurring.

Suppose a driver loses control of his car after slipping on a patch of wet leaves and crashes into another car, injuring its driver. It is legally required that there is a sufficiently close relation between the covered cause and the covered consequence.

It is the immediate cause and not the remote cause.Definition of 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.

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. 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.

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. This section provides a definition of proximate cause and explains how it should be determined in practice.

Proximate Cause. An act from which an injury results as a natural, direct, uninterrupted consequence and without which the injury would not.

Proximity cause in Insurance Essay Sample. A proximate cause is the first event in a chain of events that gives rise to a claim. There are two elements required to determine proximate cause.  F – Insurance and Risk Management A report on Accident Insurance in Green Delta Insurance Company Ltd.

& American Life Insurance Company Ltd. University of Dhaka Topic Accident Insurance in Green Delta Insurance Company Limited and American Life Insurance Company Limited Submitted to Pallabi Siddiqua Assistant Professor Department of Finance Faculty of Business Studies University .

Proximity cause in insurance essay
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