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to whether the loss was caused by a covered loss, or by an excluded cover. The
rule is referred to as ' causa proxima non remota spectator', which means that
only the proximate cause, and not the remote cause have to be looked into. If the
cause of the loss is a peril insured against, the insured then can claim for the loss
amount.

Another interpretation is that the proximate cause is the dominant cause and does
not have to be the first. Rather, we can describe it as the most relevant operative
cause.

If there are several causes operating during the time of loss, the proximate one will
be the most dominant or forceful one, to bring about the result. Risks excluded
are usually mentioned in the policy under' exclusions'. If the loss is directly or
proximately caused by an excluded risk, the claim is not payable.

Q6. What are the key tools of underwriting ?
Ans. There are several key tools of underwriting, based on which insurer gather their

information.
(a) Proposal Form - This document is the base of the contract, where all the critical

information pertaining to the health and personal details (i.e, Occupation, build,
habits, health, history, premium and claim details etc) are collected.

This could range from a simple set of questions, to a fully detailed questionnaire,
as per the needs of the company and the product, so as to ensure that all material
facts are disclosed , and the coverage is given accordingly. Any breach or
concealment of information by the insured can render the policy void.

(b) Age Proof - Premiums are determined on the basis of age of the insured. Hence

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