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6/6 W01/March 2017 Award in General Insurance

Question answers

6.1 You should find that the original event led inevitably, stage by stage, to the final loss.
6.2 It is likely that the fire would be considered the proximate cause of the loss. However, any significant time
delay would point to storm being the dominant (and therefore proximate) cause. This example is based on the
case of Gaskarth v. Law Union (1876).
6.3 There is a direct line of causation between the storm, the collapse of the wall, the burning damage and water
damage. Therefore, the storm is the proximate cause of the water damage.

Sample examination question answer
1. The correct answer is A.
There will be a direct link between the dominant cause and the resulting loss.

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Chapter Reference copy for CII Face to Face Training