Insurers must determine if the cause of loss or damage is covered by the insurance policy, this is referred to as Proximate Cause. Insurance policies cover specified perils and benefits. Also they are subject to conditions (which are rules that insurers expect Customers to follow in order for policy cover to apply); and exclusions (circumstances under which cover does not apply).
When considering the cause of loss or damage the insurer is concerned with the Proximate Cause. In many cases this will be obvious. For example, I once struck a gatepost while reversing my car into a driveway. The damage to my car was caused a...Read more
About the author:Founder and Managing Director of Map Cover Ltd. Technical Motor & Property Insurance Underwriter turned Entrepreneur and Expert Witness.
Date:April 26th, 2018