Banking And Insurance (B.Com) 3rd Sem Previous Year Solved Question Paper 2022

The principle of causa proxima, also known as “proximate cause,” is a fundamental concept in insurance and legal contexts. It refers to the idea that when determining the cause of an event or loss, the emphasis should be on the immediate or proximate cause rather than remote or indirect causes.

In the context of insurance, the principle of causa proxima is used to determine whether a loss is covered by an insurance policy. It focuses on identifying the most direct and immediate cause of the loss, which is the cause that is typically considered for insurance purposes. This helps insurance companies assess whether a claim should be paid based on the policy terms and the proximate cause of the loss.

For example, if a fire is caused by an electrical fault in a building, the proximate cause of the fire is the electrical fault, and insurance coverage would typically apply to damage caused by the fire. However, if the fire is caused by an arsonist, the proximate cause is the intentional act of arson, which may or may not be covered by the insurance policy, depending on its terms.

In legal contexts, the principle of causa proxima is used to determine liability and responsibility for various events or actions. It helps establish a clear causal connection between an action or event and its consequences.

Overall, the principle of causa proxima is essential for accurately assessing and attributing causes in insurance and legal matters, ensuring that the focus is on the immediate or proximate cause rather than remote or indirect factors.