The Rule of Causa Proxima as a Principle of Insurance

The rule of Causa promixa (proximate cause) is derived from a latin phrase causa proxima non remota spectator (the immediate, and not the remote cause is to be considered). This article highlights the significance of the rule of causa proxima which is a key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed a result of an insured peril. It primarily discusses about the emphasis laid on the test of proximate cause in Insurance Law, in order to identify the causation of the loss or damage. It makes an effort to substantiate the subject matter by looking into the trends of interpretation of the rule, including in countries like the United Kingdom, the United States, India and Canada.