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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 and

effective cause that sets into motion a train of events

which brings about a result, without the intervention of any

other causative force. This cause is termed as “proximate

cause”, all other causes being considered as “remote”. If

the proximate cause of loss is covered under the policy, the

claim becomes payable.

Example: A 52 yr man has a life insurance policy and dies

due to oral cancer. As per documents received at claims

stage, he was a tobacco chewer for last 32 yr. This fact was

not disclosed at proposal stage. The claim management

team at the insurer decided that proximate cause in this

case was tobacco-chewing, which the medical literature

supported. Further the legal team also supported the

decision. Insurer then took a decision to repudiate the

claim as proximate cause was not shared under spirit of

Uberrima fide.

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