Proximate cause

Question 1

The concept of proximate cause

Answer 1

It is the immediate cause of the damage. When considering proximate cause, you should look at the cause which is proximate in efficiency rather than time.
Active efficient cause that sets a chain of events in motion, i.e it has a direct bearing.

Case law:
- “Ikaria” (Leyland Shipping Co v N.U Fire Insurance Society (1918)
- Hamilton v Pandorf
- The “Popi M” [1985]
- “Caribbean Sea [1979]
- “Nukila”” [1997]
- Dudgeon v Pembroke [1877]

Question 2

How the provisions of MIA S.55 (2) apply to claims

Answer 2

Meaning and effect of the term “proximate clause”, MIA 55 (1)

1) Insurer is liable for any loss proximately caused by a peril insured against, but he is not liable for any loss which is not proximately caused by a peril insured against

How the provisions of MIA S.55 (2) apply to claims

Excluded losses, MIA 55 (2)
2) In particular
a. The insurer is not liable for any loss attributable to the wilful misconduct of the assured, but, unless the policy otherwise provides, he is liable for any loss proximately caused by a peril insured against, even though the loss would not have happened but for the misconduct or negligence of the master or crew;
b. Unless the policy otherwise provides, the insurer on ship or goods is not liable for any loss proximately caused by delay, although the delay be caused by a peril insured against;
c. Unless the policy otherwise provides, the insurer is not liable for ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of the subject-matter insured, or for any loss proximately caused by rats or vermin, or for any injury to machinery not proximately caused by maritime perils.

The insurer will not be liable for loss/damage proximately caused by an excluded loss.

Case law:
- Wadsworth Lighterage (1929)
- Samuel v Dumas (1923)
- Dudgeon v Pembroke [1877]

Question 3

Losses arising from a number of causes

Answer 3

Two or more proximate causes: where one is included and the other is NOT expressly excluded.

• Miss Jay Jay 1987
• The B Atlantic
• Reischer v Borwick
• Kuwait Airways Corp v Kuwait Insurance Co

Question 4

Losses arising from included and excluded perils

Answer 4

Two or more proximate causes: where a loss is caused by both an included and expressly excluded loss there will be no claim.

Case law:
- Wayne Tank & Pump Co. Ltd v Employers Liability Ins. Corp. (1973)