PROXIMATE CAUSE Flashcards
What is PC?
The initial event that triggered the claim & need not be the event that immediately preceded the loss.
PAWSEY V SCOTTISH UNION & NATIONAL INSURANCE COMPANY QUOTE (1908)?
“The active & efficient cause, that sets in motion a train of events which brings about as a result, w/o the intervention of any force started & working actively from a new & independent source.”
Purpose of PAWSEY V SCOTTISH UNION & NATIONAL INSURANCE COMPANY (1908)?
- Defines PC
- PC need not be the cause immediately prior to the loss
- Last cause could simply be a chain of events connecting to the PC
- Needs to be the closest cause and not a remote cause
Burden of Proof - Perils policy?
Onus on Insured to present cause of loss
All risks policy?
For Insurer to prove an exclusion
Pink v Fleming (1980)
- Vessel was involved in a collision which is an insured peril & had to be put in port of repairs
- Repair took to long, ships cargo eventually lost due to deterioration resulting in claim against cargo Insurers
- PC of loss was held as delay & collision was merely a remote cause
Yorkshire Dales co v Ministry of War Transport (1942)
- Choice of real or efficient cause must be made by applying common sense standards
- Causation to be understood as the man in the street & not as a scientist would understand it
TSB v Lloyds Bank (2001)
- ‘But for’ test was established
- “Would the damage of which the claimant complains have occurred ‘but for’ the negligence or other wrong doing of defendant”
- If no, causation established. If yes, causation not established.
FOS two tier test?
- Used for storm claims
- ‘but for’ storm would the damage of occurred?
- Claim may be disputed when roof is aged & effectively worn out
Dual/Multiple Cause - one an insured peril and the other an excluded cause?
The insured cannot recover
Dual/Multiple Cause - one an insured peril and the other not specifically excluded?
Insured can recover
