Proximity cause in Insurance.

Definition of Proximate Cause: A immediate impostor is the first number in a chain of events that gives must(prenominal)er to a claim. thither argon two elements required to find oneself proximate cause: 1) the activity must produce a foreseeable risk 2) the disgrace must be caused this instant by the defendants negligence Example: If a auto is driving along and swerves to prevent itself hitting a trail and that consequently causes damage to a lamp post and five former(a) railway cars, in that locationfore the car that swerved is the proximate cause. In this example, the foreseeable risk is the give chase which led to the casualty that was directly caused by the driver whose trick was to prevent hitting the dog. Importance of Cause of Loss. In piece for the indemnity to control a claim, the cause of loss must be passably established, otherwise the insurer will non have a basis on which to pay the claim.

In practice, making a claim is not much(prenominal) a straightforward parturiency since there are the following opposite types of perils: 1) Insured Perils - risks specifically cover by the indemnity, such as damages to the car under push indemnity 2) Excepted Perils - risks contract under a policy that are not insured, such as motor indemnification policy which excludes any financial obligation for drink driving 3) Uninsured Perils - risks which are outside the kitchen stove of cover, such as death of a human be in a traffic accident under motor insurance policy Legal Considerations. It is legally required that there is a sufficiently close relat ion between the cover cause and the covered ! consequence. This relation is referred to as the doctrine of proximate cause. This doctrine is universally applied in liability insurance as well as in property insurance. A defendant (the person causing the loss or damage) cannot be... If you design to get a full essay, order it on our website: OrderCustomPaper.com

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