ABSTRACT
This chapter explains a codification of the proximate cause rule formulated at common law. Indeed it is the common law which assists in determining what constitutes proximate causation of a loss. Where the contract of insurance expressly excludes certain perils, this in effect alters the rules of causation. The impact of contractual terms on the question of causation arose for consideration in the decision of Isitt v Railway Passengers Assurance Co. Recovery is subject to the parameters of the insurance contract as defined by its contractual terms. The insured must establish that the loss for which a claim is made is proximately caused by an insured peril. The insured is permitted to be indemnified so long as the loss is caused by an event stipulated by the insurance contract. The insurer’s freedom to exclude certain perils is acknowledged in regional marine insurance legislation by the phrase ‘unless the policy otherwise provides.’.
