Essay on Proximate Cause
Usually, the first and last events can be easily indentified but it is any intermediate events and causes, which happen, that may be more tricky to determine.
The event chain must be carefully considered at each stage, questions as to whether that particular chain was …show more content…
Some policies sometimes exclude a peril if it is caused directly or indirectly by another one.
There are losses whereby it is clear that more than one event has occurred at the same time, contributing to the loss. If there is no excepted peril involved and the causes cannot be identified or the parts of the loss seperated, then ALL the damage will be insured. If the losses can be filtered, then the appropriate settlements will be made, if insured.
If an excepted peril is involved in loss involving concurrent causes and the damage cannot be seperated then NONE of the loss is insured. If it can, then only the insured part of the damage is covered.
As one is aware, every policy has a set of perils that are covered and another longer list of perils that are excluded. In fact, while deciding to opt for an Insurance policy, what you actually decide is to protect yourself against is the financial losses you may suffer due to a set of certain perils.
Take, for example, a home owner choosing a Fire policy and skipping a Machinery