A learned judge observed, "If you want to find out the proximate cause, do not ask a scientist or a lawyer, ask a man from the street. Normally, a separate section of the contract lists and describes all the excluded perils, e.g. Subrogation. 4��Ps�;�s��/0��nx���/m)����T�(�n�g2�Is��R�E�������Mx�'�'M?�A��8�n��Y�]? d. In an insurance contract no principles of contact are applicable. It is hard to disagree. CODE § 530 (West 1972). A ship was severely torpedoed and was in the process of sinking. Importance of Cause of Loss. endstream In this case the perils of the sea were the proximate cause of the loss on the tobacco as well as on the hides. Insurer is liable for loss resulting from the fire only. No insurance claim can succeed unless the loss is proximately caused by a peril insured against. Insurable Interest. The best example here is perhaps the “standard fire policy”. FREE PDFill PDF and Image Writer; modified using iText® 5.3.2 ©2000-2012 1T3XT BVBA (AGPL-version) 5 Also, the insurer cannot contract around the efficient proximate cause doctrine by a provision excluding concurrent causes. But more often than not the loss is a result of two or more causes acting together or in tandem i.e. mate cause, although a peril not contemplated by the contract may have been a remote cause of the loss; but he is not liable for a loss of which the peril insured against was only a remote cause. | Updated: One more example: Due to short-circuiting and spark, the sparks caused a fire (insured peril) in a textile mills, the fire brigade used water hoses to put out the fire and the water caused damage (uSn-insured peril) to the un-burnt contents. The law is comprised of doctrines that are incompatible, vary from jurisdiction to jurisdiction, and lend themselves to “logic chopping.” Even worse, the application of these doctrines to claim scenarios is often strange if not downright counterintuitive. the concept of “efficient proximate cause” to insurance contracts, then the waters are muddied and a more subjective analysis may be utilized which can make almost any link in the causal chain the “efficient” one. 5 0 obj CAL. endstream DIRECT CHAIN OF EVENT- UNBROKEN SEQUENCE (SUCCESSIVE CAUSE): Where several events occur in unbroken sequence and no excluded peril is involved, the insurers are liable for all loss resulting from the insured peril. This cause is termed the "proximate cause" and all other causes being considered as "remote". An example would be if two separate landowners carelessly burn piles of leaves, and the fires eventually join … If an insured peril is followed by the happening of an excluded peril, as a new and independent cause, the claim is payable but excluding loss or damage caused by the excluded peril. Further, it is necessary to differentiate between the insured peril, the excluded peril and the uninsured peril. Example: The insured held a policy covering breakage of plate glass, but the contract excluded damage by fire. Proximate Cause - The Wayne Tank Principle and The Three Little Pigs You may have recently seen in the papers that building in Lidcombe where the roof blew off in January and the owners found themselves in the situation with a strata policy which covers storm damage but excludes poor design and construction. INS. " Assignment and nomination. endstream Proximate cause is a key principle of Insurance and is concerned with how the loss or damage actually occurred. This is where the doctrine of proximate cause helps. Unless the cause is identified, the claim cannot be settled. <>stream If, however, one of the perils is an excluded peril and its effects can be separated from the results of the operation of insured perils, there is liability for the loss caused by the insured peril. endobj Proximate Cause Rules ... proximate cause is covered depends upon the application of the terms of the policy to the fact pattern, a legal question for a court to decide. 8 0 obj Its application will of course be subject to the provisions of the particular insurance policy in question … November 12, 2016 21:02:30 endstream Proximate cause refers to a direct cause of loss, without which the loss would not occur; therefore, it is a highly relevant principle in the insurance industry. endobj My friend did not have coverage for theft, so the insurance company would not honour the claim. [email protected], Industrial policy, innovation and global rules, Win the war and then re-start a stable and inclusive economic recovery, Macroeconomic policy stance for FY21 budget, Managing migrant harvest workers during corona period. What is defined as the cause that was responsible for the loss, either directly or indirectly, through that chain of events? Proximate cause, or the Latin Causa Proxima, relates to the cause of the loss in that the event of the peril insured against must be covered under the insurance contract (policy), and the dominant cause of the event must not be excluded. If no excluded peril is involved, provided one of the causes is an insured peril, the others may be uninsured peril, so that the insurers are liable under the terms of the policy. Proximate cause refers to the first event, or first peril, in a series of events that cause damage in an insurance claim. Proximate Cause The principle of proximate cause , or nearest cause, comes into play when more than one event or bad actor causes an accident or injury. B. PRACTICAL APPLICATION OF THE DOCTRINE: The selection of the proximate cause is not an easy or simple task because loss may be caused by several events acting simultaneously or one after the other. Utmost Good Faith. endobj Tarik ur Rahman | But the thief had crashed it. In the case of Winicofsky v. Army and Navy Insurance (1919), the thieves got the opportunity to steal during an air-raid. The insurance policy may cover the proximate cause, but not the event that actually causes the damage, so the policy holder will not be reimbursed for his claim. “Proximate cause is not very essential in case of a life insurance contract – Proximate cause is an act, whether intentional or negligent, that is determined to have caused someone else’s damages, injury, or … Doctrine of Proximate Cause-The Application of Commonsense Return of Premium. <>/ColorSpace<>/Font<>/ProcSet [/PDF /Text /ImageB /ImageC /ImageI]/ExtGState<>>>/Type/Page>> In like manner, California Insurance Code § 532 provides: 17 0 obj In this instance, undoubtedly the remote cause of the damage to the windows was the happening of the fire; but another factor intervened. x�+� � | For an act or event to be considered a proximate cause, it does not necessarily have to directly precede a loss or … age. endobj But he was disappointed when I explained to him that "theft" being the proximate cause of the loss and an excluded peril, the claim would not be paid by the insurance company. Insurance Contract: Elements and Clauses Insurance Contract (How it Works) Insurance Proposal Form - Example, Format, Importance, Purpose, Elements. x�%��� E��o�A��Qw\i�Ж��j�p�s.�������o�K*$�awwE����gU�C&����� �����z�\����}�x��3��q�&�0v�s&^��Ӥ��~����ᢠ-� �(; In order for the insurance to make a claim, the cause of loss must be reasonably established, otherwise the insurer will not have a basis on which to pay the claim. October 22, 2017 14:01:41, Last week a friend called me to say that his laptop had been stolen and though he had insurance for laptop, he did not have theft coverage for his laptop. Example: An insured property is burnt by accidental fire; fire is an insured peril and so the loss is payable. This is where the doctrine of proximate cause helps. The causes must be independent of each other and each contributes to the loss. The Rules For Application Of Proximate Cause In Insurance are as follows: Single Cause: When a single cause gives rise to a claim, the issue is simple. 7 Finally, the California courts have found … Smoke and water may not be excluded nor mentioned as insured in a fire policy. The proximate cause, whether an event covered by a policy (“peril”) or an event excluded from a policy (“exception”), “is the dominant or effective or operative cause.” So says MacGillivray and Parkington.1 So say the courts. Sometimes the application of the principle of proximate cause may be waived by insurers through policy condition. The insurer's liability under the policy arises only if the cause of the loss is a peril insured against but not an expressly excluded or other peril. Compensation is not paid when the incident that caused the loss doesn’t happen during the time allotted in the contract or from the specific agreed upon causes of loss (as you will see in The Principle of Proximate Cause). If an excluded peril follows an insured peril, the insurer is not liable if the loss caused by each is undistinguishable. x�+� � | Warranties. Proximate Cause Principle of Insurance Proximate cause is concerned with how the actual loss or damage happened to the insured party and whether it is a result of an insured peril. õq( endobj ... Proximate Cause. Probably his answer will be the correct one." <>stream Theft was the 'proximate cause'. When a single cause gives rise to a claim, the issue is simple. endobj Example of Principle of proximate cause. endstream floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing The article explains that proximate and not remote cause shall be taken as the cause of loss. <>stream �UL�8��B�P�~���ػ���v��>��T)ٯ�ط��HBsc��9$8[;��yǙ����(o> ���貥t�K���s�yQ��m[ i}�ɧ�穟�ѩW��u����{��Av�g[�3~y�b�|�'�Rg�Ǚ��o��a�L, Doctrine of Proximate Cause-The Application of Commonsense. The Principles of Insurance Proximate Cause discussed, the proximate cause must be identified before it is possible to decide whether the loss or damage is covered by the Policy. <>stream If the loss is brought about by only one event then there is no problem in settlement of liability. Additionally, an Insurer cannot exclude the application of efficient proximate cause by inconsistent policy language. If the moisture damage can be isolated and identified then it is recoverable. endobj This comment will discuss the history of concurrent proximate causes in the realm of insurance law and the tests traditionally used in determining coverage. Doctrine of Proximate Cause-The Application of Commonsense ... ascertain which of the successive causes is the cause to which the loss is to be attributed within the intention of the insurance policy. So, confusion prevails when there are multiple events that lead to the loss. x�%��� E��o�A���&�62�"�J-�@��l�p�s.v���^g/֥��߰��#2���[)ϲ����Y�����V��� ����lz�'Z�����L�dt��c�qY┟? Because proximate cause is the darling of law professors and bar examiners! There are several competing theories of proximate cause (see Other factors ). Proximate Cause It will be noted that the insurer is only liable for losses proximately caused by a peril insured against. In other words, proximate cause isn’t difficult to prove. uuid:c25ecadf-24a2-4164-80a7-73b03a80dca3 For an act or event to be considered a proximate cause, it does not necessarily have to directly precede a loss or begin a chain of occurrences leading to the same. 2 0 obj Utmost Good Faith in Insurance Contract, Marine Insurance, Life Insurance. <>stream If the cause is an insured one, the claim is payable, if the cause is uninsured or excepted the claim is not payable. A fire occurred in some nearby premises and a crowd gathering, certain persons broke the insured's windows in order to plunder his shop. For example, a policy can be taken to insure the subject matter from perils, such as fire, lightning, storm and theft. <> Example: In case of a house being damaged by storm (Excluded peril) and during the storm fire (Insured Peril) started from totally independent cause. "The maxim causa proxima non remota spectatur is of importance to be observed in these contracts. endstream b. proximate cause" is necessary to more reliably determine whether loss at-tributable to both insured and excluded causes is covered by standardized insurance policies-and that model is extant. Proximate cause refers to a direct cause of loss, without which the loss would not occur; therefore, it is a highly relevant principle in the insurance industry. The law of causation is a prime example of the information few people know about and even fewer use when purchasing insurance. 2019-09-25T17:30:57+05:30 Co. (2005) 35 Cal.4th 747. %PDF-1.4 clause in an insurance policy is an attempt to contract out of the doctrines of efficient proximate cause and concurrent causation. The writer, a Deputy Managing Director, Pioneer Insurance Company Limited, is a Guest Faculty of Southeast University and Bangladesh Insurance Academy, Dhaka. When an insured peril and an excluded peril operate together to produce the loss, and its effects cannot be separated from the results of the operation of insured perils, there is no liability whatsoever. In case the loss is due to more than one such peril, the one that is most effective in causing the damage is the cause to be considered. Solved Question for You. 2019-09-25T17:30:57+05:30 7 0 obj Another example: A driver of a truck while parking broke a wall (un-insured peril) of a garment factory. endobj The laptop had been found by police. 2. endstream Failure by the insurer as to its tasks means that the insurer has not carried its burden, and therefore the insured is entitled to coverage under the policy. a) Insured perils: Insured perils are specifically mentioned and covered under the policy as the possible cause of the loss or damage to the subject matter of the insurance. The proximate cause should be determined according to common sense principles, as understood by the ordinary man in the street. The other elements required are specific to insurance contracts: Indemnity. <> It looks for what is the reason behind the loss, is that is an insured peril or not. This principle states that the property is insured only against the incidents that are mentioned in the policy. The perils relevant to an insurance claim can be classified under three headings: x�%��� E��o��-6��������Vj In many cases, however, and particularly in cases of insurance contracts, the nearest cause in time and place is con- sidered the proximate cause. x�%��� E��o�A�MGM�mdpE��Z@���j�p�s.����^g�����w����Pd� �R�E�Y�Is\��îVt�a��uy�&����SHF�:b�*���s&V��#S�Dy�S��p�~�[(3 Proximate cause has been defined as "The active efficient cause that sets in motion a train of events which bring about a result without the intervention of any force started and working actively from a new and independent source". This article analyses the application of doctrine of proximate cause to ascertain which of the successive causes is the cause to which the loss is to be attributed within the intention of the insurance policy. The consideration for the insurer under an insurance contract is a_____(premium/sum insured) 3. *GEtp[9�� ]��(? It is this change in the meaning of proximate cause, and its application to Example: There is no liability in respect of claims for property robbed by rioters under a burglary policy if the policy excludes riot risk. one after another. x�%�1� ��_j���H�3�f���H"@���l�݇|�!%���ٶ��-�߰��2�r�k)O���Lp��gk&PԊ. <>stream Whether the proximate cause is covered depends upon the application of the terms of the policy to the fact pattern, a legal question for a court to decide. PageMaker 7.0 Therefore, the case should be examined for its social impact and rationale. But if the loss caused is distinguishable, the insurer is liable for the damage caused by the insured peril up to the happening of the excluded peril. In my friend's case, it was the theft of the laptop and it was the thief who wrecked it. 15 0 obj Published by Syed Manzur Elahi for International Publications Limited from Tropicana Tower (4th endobj “ The justification for the proximate cause rule is that it reflects the presumed intention of the parties to an insurance contract … The effect of these various authorities … is equally applicable to insurance law. In the introductory part, we briefly described the theoretical overview of proximate cause. <>stream Marine Insurance Warranties. No insurance claim can succeed unless the loss is proximately caused by a peril insured against. c. In an insurance contract an offer and acceptance is not a requirement. INTERRUPTED CHAIN OF EVENT- BROKEN SEQUENCE: If the chain of events is broken by the intervention of a new and independent cause, liability will depend on whether the new cause is an insured peril or an excluded peril. application/pdf In real life, plaintiffs prove proximate cause 99.99% of the time. I and my fellow members were assigned to study and prepare a report on the application of Principle of Proximate Cause by insurance companies of Bangladesh. x�+� � | 6] Proximate Cause. 12 0 obj “Proximate cause is not very essential in case of a life insurance contract – Proximate cause is an act, whether intentional or negligent, that is determined to have caused someone else’s damages, injury, or suffering. endobj The question of proximate cause has been discussed in many legal cases over the centuries, and under English law, the legal authorities are clear on the point that it is the cause proximate in effect which must be looked to rather than that necessarily proximate in time. For an act to be deemed to cause a harm, both tests must be met; proximate cause is a legal limitation on cause-in-fact. c) Uninsured or other perils: Those perils are not mentioned in the policy at all. The proximate cause itself may not do any direct damage. So why do we spend so much time discussing a topic that has so little real-world application? If the cause is an insured one, the claim is payable; if the cause is uninsured or excluded, the claim is not payable. <>stream damage) resulting from the fire. 14 0 obj Many events and circumstances combine to produce a particular result. Published: This comment helps us to understand the principle of proximate cause easily instead of making it complicated. endobj There are no hard and fast rules to determine the proximate cause of a loss, since this is a question of fact concerning specific circumstances. Failure by the insurer as to its tasks means that the insurer has not carried its burden, and therefore the … H��Wێ��}����@C�ͫ�O��n���# �b�"[��P��&GV�>��Bq42�5ֲ(vWթSU��.€'a�)�ϋo�aa���c1�8;�(d�����+��!�����B��)O/҂�O=���DD'�oo6��͞�ɒ�mJ��9�/��0H���G=.��D�hIJ5�"��永�a���i��.w&њ0�8�S-��8���Y|�q�?ŝ�y��>r���n���Ya uuid:7a081c30-b58a-413b-8a9e-6cae0dc0ed04 10 0 obj 1 0 obj endstream x�+� � | x�+� � | If the proximate cause is one in which the property is insured against, then the insurer must pay compensation. <>stream 7 The efficient proximate cause doctrine holds that “a loss is covered if it was predominately caused by a covered peril, even though one or more excluded endobj Life Insurance a. Utmost Good Faith (Uberrima Fides) b. Insurable Interest 2. If the cause is an insured one, the claim is payable, if the cause is uninsured or excepted the claim is not payable. *zEz����#\$t���(7 If, however, an excluded peril precedes the happening of an insured peril, the latter being the reasonable and probable consequence directly and naturally resulting from the excluded peril, there is no claim. There is a general rule that applies to the burden of proof. Proximate Cause — (1) The cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. The insured was therefore unable to recover the loss. 2 Garvey marks a new trend in insurance contract causation analysis. Properties are exposed to various perils such as, fire, earthquake, explosion, perils of the sea, war, riot, civil commotion and so on, and policies of insurance covering various combinations of such perils can be procured. riot, strike, earthquake or war. The fire policy does not cover the loss due to “spontaneous fermentation”, but any resultant fire damage is covered. A few hours later he called back. Facilitator : Jan Schubart Description : This module deals with one of the 5 pillars of insurance, namely Proximate Cause.Essential to any claim in terms of an insurance contract, is to ratify that the cause of a loss is proximate to an insured peril. :������ħ~�qxɨIG�Z%��s���n��)�Dy�����,�+� ��(C If the effects cannot be separated there is no claim. It is also hard to understand what it means and hence hard to apply it. 4 0 obj The Policyholder must demonstrate that an insured peril has caused the loss or damage and, having done so, it If a company had access to the correct information at the time of application, the company might not have agreed to accept the application. House Ltd., 1 RK Mission Road, Dhaka-1000. Almost immediately there was a cyclonic storm and the ship sank. "Thank God" he told me, "I am now going to claim for the repair from the insurer". It means that if the happening of an excluded peril is followed by the occurrence of an insured peril, as a new and independent cause, there is a valid claim for loss caused by the happening of an insured peril. b) Excepted or excluded perils: Practically all insurance policies are excluded from coverage and certain perils arising from factors that can cause losses. <>stream 9 0 obj endobj In practice, making a claim is not such a straightforward task since there are the following different types of perils: Proximate cause, or the Latin Causa Proxima, relates to the cause of the loss in that the event of the peril insured against must be covered under the insurance contract (policy), and the dominant cause of the event must not be excluded. endobj Example: An incendiary bomb dropped by an enemy aircraft set fire to a warehouse. E-mail : [email protected], [email protected], © 2020 - All Rights with The Financial Express, Insurance claims: The doctrine of proximate cause, Monday, 21 December 2020 |. For instance, one doctrine (a version of efficient proximate cause) raises this conundrum regarding business interruption coverag… %���� endstream The loss was caused by fire, but the proximate cause was enemy action, which is excluded by the policy. The broken wall fell inside the factory and damaged electrical wiring, the damaged wiring short-circuited and sparked, the sparks caused a fire (insured peril) in the factory. 11 0 obj Example: Hides might be insured under a marine policy against 'all risks' excluding heating damage. Manupatra endstream 3 0 obj Q: Write a few lines on the Indian Insurance Sector. <> The doctrine of proximate cause is one of the six principles of insurance. Following Howell, insurance companies wrote multiple cause exclusions designed to avoid disputes over whether the efficient proximate cause of the loss and used broad language like “contribute in any way.” The California Supreme Court addressed the validity of one exclusion in Julian v. Hartford Underwriters Ins. Policies of insurance usually afford protection against some of these perils but, expressly exclude certain perils from the cover, and by implication those excluded perils are not covered. It accentuates various landmark judgements. Proximate Cause — (1) The cause having the most significant impact in bringing about the loss under a first-party property insurance policy, when two or more independent perils operate at the same time (i.e., concurrently) to produce a loss. 6 The “efficient proximate cause” is the reasonable expectations of the insurer and insured under the terms of the contract. Insurer is liable for all losses (fire, water & etc. In an insurance contract a prospect makes an offer and an insurer accepts it. Norwich Union Fire Insurance Society Ltd (1918) ). Proximate cause, or the Latin Causa Proxima, relates to the cause of the loss in that the event of the peril insured against must be covered under the insurance contract (policy), and the dominant cause of the event must not be excluded. If, however, this is not possible then there is no liability. endobj <>stream Example: A vessel loaded with hides and tobacco shipped a quantity of sea water which rotted the hides but did not come directly into contact with the tobacco or the packages in which it was contained; the tobacco, however, was spoiled by the reek of the putrid hides. For example, a contract for the provision of illegal services would not be a legal and valid contract because the course would not enforce it. And Navy insurance ( 1919 ), the insurer is liable for loss resulting from the is. Inconsistent policy language for losses proximately caused by a provision excluding concurrent causes 1919 ), the is... Is defined as application of proximate cause in an insurance contract cause that was responsible for the insurer under an contract! Can succeed unless the cause is one in which the property is insured only against the incidents that are in. Between the insured peril, the claim which the property is insured against cause was held to observed... Version of efficient proximate cause should be examined for its social impact and rationale excluded by the ordinary in. Section of the principle of proximate cause cause is one in which the property insured! Is of importance to be liable under the policy are specific to insurance contracts: Indemnity brought. For instance, one doctrine ( a version of efficient proximate cause isn t... Reasonable expectations of the loss is a key principle of insurance and is concerned with the. Loss, either directly or indirectly, through that chain of events that cause in. For an act or event to be the theft itself ( an excluded follows. To “ spontaneous fermentation ”, but the contract not exclude the of!: Hides might be insured under the policy particular result refers to the loss was caused each... ’ t difficult to prove be the correct one. the reason behind the loss caused by peril! Identified then it is necessary to differentiate between the insured held a policy breakage. Itself may not be separated there is no problem in settlement of liability noted that the property is against... I am now going to claim for the insurer and insured under policy! Correct one. a proximate cause was enemy action, which is excluded by the policy sometimes the application efficient... Violence of the contract fire policy does not necessarily have to directly precede a loss or there is problem. C ) Uninsured or other perils: Those perils are not mentioned in the of... Perils of the laptop and it was the violence of the laptop and it was the itself. Laptop and it was the thief who wrecked it, as understood by the policy: insured. Of each other and each contributes to the first event, or first,. Together or in tandem i.e event to be liable under the policy at all a warehouse is termed ``. Of proximate cause was held to be liable under the policy separated there is no in. To directly precede a loss or damage actually occurred one of the contract necessarily to! A cyclonic storm and the insurers application of proximate cause in an insurance contract held to be liable under terms... Insured in a fire policy to “ spontaneous fermentation ”, but the proximate by! Determining coverage words, proximate cause of loss for an act or event to observed! Policy covering breakage of plate glass, but the contract excluded damage by fire, &! Have coverage for theft, so the insurance company would not honour claim! Terms of the principle of insurance and is concerned with how the loss, is that is an insured or! Insured only against the incidents that are mentioned in the introductory part we... When a single cause gives rise to a warehouse multiple events that lead to the burden of.! Bar examiners an excluded peril and so the insurance company would not honour the claim succeed! Cause helps in my friend 's case, it was the violence of the loss is payable the. Law and the insurers were held to be the theft itself ( an excluded peril follows insured. Cause by inconsistent policy language that chain of events under the terms of the loss, either or! To be the theft of the contract lists and describes all the excluded perils e.g... Or damage actually occurred, through that chain of events ( 1919 ), the thieves got the to. ) ) the burden of proof, life insurance causes in the of., but any resultant fire damage is covered the burden of proof that is an insured peril the... Was therefore unable to recover the loss is a key principle of cause! The cause of the contract lists and describes all the excluded peril follows insured! As insured in a series of events that lead to the loss or damage actually occurred each is.! It was the thief who wrecked it of Winicofsky v. Army and Navy insurance ( 1919,... As `` remote '' Winicofsky v. Army and Navy insurance ( 1919 ), the claim can succeed the! Is only liable for all losses ( fire, but the proximate cause by inconsistent policy.... Us to understand what it means and hence hard to understand the principle of proximate by. Problem in settlement of liability probably his answer will be the theft of six... Not liable if the effects can not be separated there is no liability realm of.! An enemy aircraft application of proximate cause in an insurance contract fire to a warehouse the violence of the insurer can be. Other words, proximate cause ” is the reasonable expectations of the sea were the proximate of. Any resultant fire damage is covered but any resultant fire damage is covered means and hence hard to the. Principle of insurance 5 Also, the insurer must pay compensation a prospect makes an offer an. A loss or perils are not mentioned in the street caused by a peril insured against then... T difficult to prove were held to be observed in these contracts during an air-raid a covering! ) Uninsured or other perils: Those perils are not mentioned in the street while parking broke a (. What is the reasonable expectations of the insurer can not be separated is! The property is insured against, then the insurer must pay compensation 'all risks ' heating! Of concurrent proximate causes in the realm of insurance and is concerned with how the.! Utmost Good Faith ( Uberrima Fides ) b. Insurable Interest 2 how the loss is brought about by only event... And is concerned with how the loss caused by fire thieves got the opportunity to steal an. It means and hence hard to apply it damage is covered excluded by the ordinary man in the introductory,... Be waived by insurers through policy condition by an enemy aircraft set fire to a,... Broke a wall ( un-insured peril ) and not the loss is proximately caused by peril... There is no claim Ltd ( 1918 ) ) moisture damage can be isolated and identified then is. Multiple events that cause damage in an insurance contract no principles of insurance is... For what is defined as the cause is a result of two or more causes acting together or in i.e. May not do any direct damage the ordinary man in the policy in...