1 0 obj<> • Non-Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. Causa Proxima is a Latin phrase, which means proximate cause. • Non-Life insurance products include property or casualty, health insurance or house, fire, marine insurance etc. हिंदी भाषा सम्पूर्ण परिचय – Free E-Book PDF for LIC Asst. 6. Principle of Causa Proxima (a latin phrase), or in simple English words, the Principle of Proximate or nearest cause , which means when a loss is caused by more than one causes, the proximate or the nearest or the closest cause should be taken into consideration to decide the liability of the insurer. In the case of loss the proximate cause should be considered not the remote cause. Word "Cause Proxima" means "Nearest Cause" An accident may be caused by more than one cause. If the cause is not fire but some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. When a storm blew up, the ship sank. (IV) Causa Proxima: The insurer indemnifies if the loss arises only from the nearest cause. IN JURE NON REMOTA CAUSA SED PROXIMA SPECTATUR Latin, meaning In law not the remote but the proximate cause is looked at. 9. a. subrogation b causa proxima c. indemnity d. insurable interest. REFERENCES: Insurance is the process in which the loses of few are shared by many persons who are equally exposed to same risks. vi) Causa Proxima: In a contract of insurance, the governing rule is the proximate cause to fix the liability of the insurer. see the proximate cause and not the distant cause. (c) Foreign Banks. The real cause of the loss must be considered while payment of the loss. b) Utmost Good Faith Any written information regarding it is insurance correspondence. Question 3. • It is meant insurance other than life insurance. b) Principle of Subrogation 7 0 obj<> proximal bei Wortbedeutung.info: Bedeutung, Definition, Übersetzung, Herkunft, Rechtschreibung, Beispiele. (b) … 44 44 (1868) Insurance Company v. Tweed . If the proximate cause of the loss is fire, the loss is recoverable. d) Double insurance 74 U.S. (7 Wall.) Definition. c) Principle of Contribution endobj The two words are commonly in use together, but there is a fine distinction between the two. 2019 Mains, Types of Insurance in India – Download the free E-book, Glossary of Important Insurance Terms – Download the Ebook, Role of IRDAI in India’s Insurance Industry, SBI PO Complete Practice Course – for Advanced Level Aspirants, ICMR Assistant Exam 2020 – Complete Test Series: Attempt Now, IBPS PO 2020 Mock Tests – Attempt a Free Mock Test Now, Attempt a Free SEBI Grade A Mock Test here, Insurance Notes & MCQs – Principles of Insurance. • If the proximate cause is the one which is insured against, the insurance company is bound to pay the compensation and vice versa. a) Insurable Interest • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. Insurance MCQ Questions and answers with explanations. asked Jul 25, 2019 in General by Ritika (68.7k points) In insurance, “Causa Proxima” means. • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. The topic also holds relevance for the general awareness section of other government exams such as Bank exams, SSC … • This principle applies to life, fire and marine insurance. The maxim is “Causa-proxima non remota spectaturs”. • Assurance is used in those contracts which guarantee the payment of a certain sum on the happening of a specified event which is bound to happen sooner or later, for example attaining a certain age or death. • In case of life insurance spouse and dependents have insurable interest in the life of a person. • The cause should be the proximate cause and cannot the remote cause Potentia propinqua. Causa proxima, non remota spectator is a Latin phrase. Proximate cause means the active, efficient cause that sets in motion a train of events which brings about a result, without the intervention of any force started and working actively from a new and independent source. Insurer will not be liable for the farthest cause. Indemnity • Corporations also have insurable interests in the life of their employees, a) Insurable Interest MEANING OF INSURANCE Insurance is contact in which insurance of indemnity company or insurer in consideration of certain agrees to pay certain sum periodical payment of money i.e. It is a contract for an year. 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. Marine Insurance: Marine Insurance provides protection against loss during sea voyage. 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. Page-4 section-1 The maxim is, “Causa Proxima no remote spectator”. This principle applies when the loss is the result of two or more causes. endobj If you copy anything we will hunt you down and we mean it. Insurance Terminology – Assurance v/s Insurance, Crack All IBPS Exams – Join Mega Banking Online Course Now, Bank of Maharashtra Recruitment 2019 – For Generalist Officers | Scale- II & Scale III, Coding Decoding and Input Output Online Class: For IBPS Clerk & Other Bank Exams, SBI PO Online Course 2020 – Join to Guarantee your Success, Bolt – Monthly Current Affairs PDF | Free GK eBook Download, Best Telegram Group for Banking Aspirants, Oliveboard PODCASTS – A Simpler Way to Learn. Direct or immediate: "The stock market crash in October, 1929 ... is often regarded as ... the major proximate cause of the Great Depression" (Milton Friedman). the insured, by paying a definite amount, in exchange for an adequate consideration called as premium. 3. Learn the meaning of Principle of Causa Proxima in Hindi in about 2 minutes. Insurance MCQ Questions is important for the preparation of exams like LIC EXAM, IRDA, UIIC, NICL, NIACL, and OICL. In case of life or marine insurance, insured must be the owner both at the time of entering of entering into the insurance contract and at the time of accident. It’s a long term contract. Causa Proxima Question 4. 10. Insured can't make any profit from the insurance contract. 3 0 obj<> • Each party must reveal all material information to the other party whether such information is asked or not. According to Iowa State University, in a non-insurance lawsuit, the court considers the proximate cause to be the reason for the loss. This also means the insurer (insurance company) has the legal right to claim any future gains from the said property for any recovery and/or settlement. If goods are stolen due to faulty packing, the insurer does not indemnify the loss. 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. Insurance MCQ Questions is important for the preparation of exams like LIC EXAM, IRDA, UIIC, NICL, NIACL, and OICL. Example of Principle of proximate cause A ship was severely torpedoed and was in the process of sinking. Insurance. Subrogation Which of the following principles of Insurance tells that an insured may not be compensated by the insurance company in an amount exceeding the insured’s economic loss? d) Contribution of That person. Insurance Services -> Introduction (Nature of Business Risks, Meaning of Insurance, Importance of Insurance), Types of Insurance (Life Insurance, Fire Insurance, Marine Insurance, Other Insurances, Differences between different Insurances), Principle of Insurance (Utmost Good Faith, Insurable Interest, Indemnity, Contribution, Subrogation, Mitigation, Causa Proxima) 4. 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. 3. In popular terms a dialect it is famous as non-life insurance. Mr.A has taken a marine policyto cover the goods exported by him. Principle of Causa Proxima (Nearest Cause). It generally comes to an end at the expiry of the year and may be renewed. "Causa causans... (means) a cause which causes while causa sine qua non means ... a cause which does not, in the sense material to the particular case, causa, but is merely an incident which precedes in the history of narrative of events, but as a cause in not in at the death and hence is irrelevant." Insurance is a mean of protection from risk or loss. However, beware that the insurance may not take effect until the goods are placed on the ship, plane, train or truck and it may not cover goods after they have left the vehicle and entered the warehouse or customs shed. In this blog post, we have compiled Insurance Notes & MCQs on classification & Principles of Insurance. a. subrogation b. causa proxima c. insurable interest d. uberrima fide i. EXAMPLE OF PRINCIPLE OF INEMINTY MR. e) Principle of Indemnity. e) Causa Proxima. This must be direct, dominant, operative & efficient. • According to it, after the insured is compensated for the loss caused by the damage to the property insured by him, the right of ownership to such property passes to the insurer after settling the claims of the insured in respect of the covered loss. 1 Answer +1 vote . 6. Which of the following principles of Insurance denotes a positive duty of the person seeking insurance to voluntarily disclose all facts material to the risk being proposed whether requested or not? Such losses, if covered by conventional insurance, mean having to pay a premium that includes loadings for the company's general expenses, cost of putting the policy on the books, acquisition expenses, premium taxes, and contingencies. Insurer pays the claim money only if the nearest cause is insured. c) That legislation has been passed prohibiting or severely limiting lawsuits for injuries. the insured, by paying a definite amount, in exchange for an adequate consideration called as premium. The basic principles which govern the insurance are: LIC Assistant Mains Exam 2019 is scheduled on 22nd of December 2019 and it is high time that you start revising your insurance notes for the section of General/Financial Awareness. 6 0 obj[/ICCBased 7 0 R] the “proximate cause” this is applicable in case of marine and fire insurance. • There should not be any fraud, non-disclosure or misrepresentation of material facts. So, it does not apply to life insurance. Insurance Company v. Tweed, 74 U.S. 7 Wall. • Causa Proxima means proximate cause or cause which, in a natural and unbroken series of events, is responsible for a loss or damage 3) Principle of Indemnity. Example: A trawler vessel was insured against losses resulting from collision. As per this principle of causa proxima, when a loss if caused by more than one causes, then the nearest or the closest cause should be taken into consideration to decide the liability of the insurer. 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. If the proximate cause is the one in which the property is insured, then the … Tweed brought suit in the Circuit Court for the Eastern District of Louisiana against the Mutual Insurance Company on a policy of insurance against fire which covered . insurance company or the insurer, agrees to compensate the loss or damage sustained to another party, i.e. 1.Principle of utmost good faith: The principle of Uberrimae Fidei (a Latin phrase), or in simple English words, the Principle of Utmost Good Faith, is a very basic and first primary principle of insurance. • Indemnity principle is a rule of insurance law which says an insurance policy should not confer a benefit greater in value than the loss suffered by the insured. The principle states that to find out whether the insurer is liable for the loss or not , the … c) Principle of Proximate Cause Q14. 2. However, a marine insurance is commercial indemnity, so even the reasonable anticipated profit is also made good. 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