Page 63 - Ebook IC S01
P. 63

Survey And Loss Assessment IC-S01


               to the negligence of the ship owner. In this case the insurance company will pay the


               insured the full claim amount but will reserve the right to recover the amount from


               the ship owner who was responsible for the loss. Once the loss is paid to the insureds


               all  the  rights  and  liabilities  of  the  insured  will  be  transferred  to  the  insurer  and


               insured cannot claim in future any amount from the ship owner.





               According to the principle of contribution if there are more than one policy for the


               same subject matter the insured will get only the actual claim amount. He cannot


               recover  separately  from  different  insurance  companies.  Each  insurer  pays  the


               proportionate amount of loss suffered by the insured.





               Proximate cause


               According to the concept of proximate cause the loss will be paid only if it is caused


               by  the  most  active  and  efficient  cause  and  it  is  insured  under  the  policy.  The


               proximate cause may be defined as the active and efficient cause that sets in motion


               a train of events which brings about a result, without the intervention of any forces


               started and working at actively from a new and independent source.





                  If there are more than one causes of insurance only the original cause which led


                   to  the  damage  will  be  considered.  The  subsidiary  cause  though  may  not  be


                   insured  peril,  even  then  the  loss  will  be  paid  since  the  original  cause  was  an


                   insured peril.









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