It means ‘the immediate, and not the remote cause is to be considered.’ This is a maxim of causation that is applied both in marine and general insurance. • This principle applies to life, fire and marine insurance. Causa proxima it is a rule of law that in actions on fire police ,full regard must be had to the causa proxima if the proximate cause of of the loss is fire, the loss is recoverable. b) Utmost Good Faith "The proximate cause of America's deficits is that Washington has dramatically cut the taxes of America's rich" (Eamonn Fingleton). a. subrogation b. causa proxima c. insurable interest d. uberrima fide i. The basic principles which govern the insurance are: LIKE, SHARE & SUBSCRIBE Do check out other videos on this channel. 1 0 obj<> 8 _____ principle in insurance means maximum truth. Insurance MCQ Questions is important for the preparation of exams like LIC EXAM, IRDA, UIIC, NICL, NIACL, and OICL. Definition. d) Contribution of That person. a. subrogation b causa proxima c. indemnity d. uberrima fides 59 principle in insurance mention the assured must have insurable interest in the life or property insured. Potentia debet sequi justitiam, non antecedere.… VOLUNTAS IN DELICTIS NON EXITUS SPECTATUR Latin, meaning In offences the intent and not the result is looked at. A couple of examples of its application in insurance: Renovation to a house damaged by fire. • Causa Proxima means proximate cause or cause which, in a natural and unbroken series of events, is responsible for a loss or damage • The insurer is liable for loss only when such a loss is proximately caused by the peril insured against • The cause should be … According to this principle the insured actual loss is indemnified on the occurrence of certain event PRINCIPLE OF INDEMINITY 13. Syllabus. asked Jul 25, 2019 in General by Ritika (68.7k points) In insurance, “Causa Proxima” means. • Corporations also have insurable interests in the life of their employees. d) Principle of loss Minimization The nearest cause of the damage caused t… Subrogation is a right that a person has of standing in the place of another and availing himself of all the rights and remedies of that another, whether already enforced or not. d) Double insurance • If the risk insured is the remote cause of the loss, then the insurer is not bound to pay compensation. 1. PROXIMATE CAUSE(CAUSA PROXIMA):-According to this principle,when the loss is the result of two or more causes,the proximate cause of loss should be taken into consideration.The insurance company is not liable for the remote cause.e.g. Indemnity c. Prevent the causes of loss . If goods are stolen due to faulty packing, the insurer does not indemnify the loss. 7 0 obj<> Q1. �MFk����� t,:��.FW������8���c�1�L&���ӎ9�ƌa��X�:�� �r�bl1� • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. Cattle Insurance Knowing about insurance and its principles is important especially for candidates appearing for Insurance exams such as LIC, NICL, NIACL and IRDA. In popular terms a dialect it is famous as non-life insurance. Principle of utmost good faith is also known as _____ . • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. Marine Insurance: Marine Insurance provides protection against loss during sea voyage. In popular terms a dialect it is famous as non-life insurance. It is a contract for an year. The two words are commonly in use together, but there is a fine distinction between the two. if the causes is not fire but some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. Insurance Multiple-Choice Questions Flashcards Preview ... With respect to automobile insurance, no fault insurance means a) A strict tort system of compensation b) Minimum limits under the Third Party Liability coverage. It applies to any insurance which is a contract of indemnity. Insurance is the process in which the loses of few are shared by many persons who are equally exposed to same risks. In terms of property insurance, establishing a proximate cause may be crucial to determine coverage in cases wherein more than one peril contributes to a loss. Which of the following principles of Insurance assures about the financial interest that the assured possesses in whatever is being insured? a. subrogation b causa proxima c. insurable interest d. uberrima fides 10. 2. Proximate cause, or the Latin Causa Proxima, relates to the cause of the loss in that the event of the peril insured against must be covered under the insurance contract (policy), and the dominant cause of the event must not be excluded. • There should not be any fraud, non-disclosure or misrepresentation of material facts. This means, in the event of a loss or claim, the insurer will give compensation according to the financial loss suffered by the insured, without adding to it or being influenced by profit seeking factors. Immediate or proximate means Proximate in efficiency and not necessarily in time. Page-4 section-1 5. Held that the insurers were not liable, the case not being one for the application of the maxim "causa proxima, non remota, spectatur." Revise your Insurance notes multiple times so that you don’t miss out on any of the marks in the LIC Assistant Mains 2019 exam. 9. e) Principle of Partnership. This maxim has been widely interpreted to mean, “the immediate not the remote cause is considered.” 1. So, it does not apply to life insurance. Principle of Causa Proxima (Nearest Cause). For example, if a loss is caused by several reasons then the nearest cause of loss will be considered. Question 5. As a policy may exclude certain perils, if the one determined to be the proximate cause is not covered in the policy, the insurer would not have to pay out benefits, while the inverse would hold true as well. In a contract of indemnity, only loss is made good. premium Occurrence of to compensate loss uncertain event caused by 4. Q14. Subrogation Mr.A has taken a marine policyto cover the goods exported by him. • This principle applies to life, fire and marine insurance. • Non-Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. Causa Proxima Word "Cause Proxima" means "Nearest Cause" An accident may be caused by more than one cause. Insurable amount is paid either on the occurrence of the event or maturity. Risk is the degree of variation in the possible outcomes from an uncertain event or as the variation in actual from expected outcomes. 1 Answer +1 vote . So, it does not apply to life insurance. Pursuant to this principle, the cause nearest in the order of causation, without any efficient concurring cause to produce the result, must be considered as the direct cause. • The insurers must share the burden of payment in proportion to the amount insured by each. 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