Here there are two causes for the damage of the cargo ship - (i) The cargo ship getting punctured beacuse of rats, and (ii) The sea water entering ship … The mangoes got spoiled due to delay in unloading and loading. 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. The nearest cause for the loss was the water which entered in the ship because of which the goods got destroyed. Causa Proxima is a Latin phrase, which means proximate cause. Principle of Causa Proxima (Nearest Cause) Principle of Causa Proxima (a Latin phrase), or in simple english words, the Principle of Proximate (i.e Nearest) Cause, means when a loss is caused by more than one causes, the proximate or the nearest or the closest cause should be taken into consideration … 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 … The real cause of the loss must be considered while payment of … Insurance contracts are of following types Zigya App. ( For … There are two types of causation in the law: cause-in-fact, and proximate (or legal) cause. 7. 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 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 ship was insured under a policy that covered perils of the seas, however excluded war risks. The company will not get compensation because mangoes were not spoiled in accident. This case is related to the principle of Causa Proxima. Principle #7 – Principle of Causa Proxima (Nearest Cause) This is a very important principle of insurance which an insured person should be aware about. Causa Proxima. If … see the proximate cause and not the distant cause. If the goods would have been destroyed by the rats then the … 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. 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. 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 principles of insurance, a principle of Principle of causa proxima is the fundamental principle. Proximate cause is a key principle of Insurance and is concerned with how the loss or damage actually occurred. Types of Insurance. 9. The property may be insured against some causes and not against all causes, in such as … Cause-in-fact is determined by the "but for" test: But for the action, the result would not have happened. So the insurance company was liable to pay for the loss. This principle is applicable when the loss is the result of two or more causes. The proximate cause means; the most dominant and most effective cause of loss is considered. Example: A trawler vessel was insured against losses resulting from … The rule is that immediate and not the remote cause is to be regarded. ... Class 10 Class 12. Business Services. The maxim is “Sed causa proxima non-remota spectature” i.e. Principle of proximate cause: Proximate cause literally means the ‘nearest cause’ or ‘direct cause’. 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. It is because of principle of causa proxima. (ii) Principles (a) Principle of utmost. This case is related to the principle of Causa Proxima. As per this principle of causa proxima, when a loss if caused by more than one causes, then the nearest or the closest cause should be taken into … 6. As … principle of causa proxima class 11 cause is to be regarded would have been destroyed by the `` but ''... Not have happened such as … 7 against some causes and not the cause. And is concerned with how the loss was the water which entered in the law: cause-in-fact and. 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