The Principle of Causa Proxima or Proximate cause is one of the six fundamental principles of insurance and it deals with the most proximate or nearest or immediate cause of the loss in an insurance claim.
Proximate cause is referred to as the cause that is active and is efficient in causing or setting in chain a motion of events that ultimately brings forward a result. The proximate cause needs to be the first cause or the last, but it is defined as the cause that is most active in bringing forth a result.
When the liability of the insurer is determined, the proximate cause is considered first. Therefore, if the proximate cause of a loss is a known insured risk, for which the insurer has to pay the insured.
It means that if the proximate cause of the loss is insured then the insurer is liable to pay the compensation to the insured.
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Frequently Asked Questions on Principle of Causa Proxima
1. What do you mean by proximate cause?
Proximate cause is the real cause or the legal cause that can be considered as the primary cause for any loss that occurs for the insured.
2. What is an example of proximate cause?
Proximate cause can be understood by the following example. A man was riding a bicycle to his work, midway there was a riot going on in the street for which curfew was declared, as a result the man had to turn back and could not attend office. Here the proximate cause is the street riot that stopped the man from attending office.