ABSTRACT
An insurer is liable for the loss that is caused by an insured peril. In marine insurance policies the proximate, not the remote, causes are to be regarded.1 Thus, whether or not a loss is covered by a marine policy depends on ascertaining its proximate cause.2 Section 55(1) of the MIA 1906 provides ‘Subject to the provisions of this Act, and unless the policy otherwise provides, the insurer is liable for any loss proximately caused by a peril insured against, but, subject as aforesaid, he is not liable for any loss which is not proximately caused by a peril insured against’.3 MIA 1906 section 55(2) states exclusions to the cover from a contract of marine insurance, and the policy may provide further exclusions. Therefore, when there is an issue regarding the policy cover it is necessary to determine the proximate cause of the loss. If the relevant cause is one of those covered by the policy of insurance, the insurer may be liable for the loss.
