Page 36 - M1_Insurance Introduction Notes

the insured’s right to claim from anywhere else

gets ‘subrogated’ to the insurer.

 Proximate Cause –

The word ‘proximate’ means ‘nearness’ or

‘closeness’. The concept is that the cause that is

‘closest’ (in its effect) to the loss, is considered to

decide whether a claim is payable or not. If loss to

an insured property is the result of two or more

causes acting simultaneously or in succession (one

after another), it becomes necessary to choose the

most important, the most effective or the most

powerful cause which has brought about the loss.

It is the active efficient cause that sets into

motion a train of events which brings about a

result, without the intervention of any other

force. This cause is termed as “proximate cause”,

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