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The rule is "causa proxima non remota spectatur" i.e., the proximate or immediate and not the remote cause is to looked to.This is a principle of insurance laying that the insurer is liable only for those losses which have been proximately caused by the peril insured against. In other words, in order to make the insurer liable for a loss, the nearest or immediate or last cause is to be looked into, and if it is the peril insured against, the insured can recover. This is the rule of "Causa Proxima". Insurers are not liable for remote causes and remote consequences even if they belong to the category of insured perils. The question, which is the causa proxima of the loss can only arise where there has been a succession of causes. When a result has been brought about by two causes, you must in the insurance law, look to the nearest cause, although the result, no doubt, would not have happened without the remote cause...The cause which is truly proximate is that which is "Proximate in Efficiency". The law will not allow the assured to go back in the succession of causes to find out what is the original cause of loss.

CASE STUDY: In a marine policy, the goods were insured against damage by sea-water. Some rats on board bored a hole in a zinc pipe in the bath which caused sea-water to pour out and damage the goods. The underwriters contented that as they had not insured against the damage by rats they were not bound to pay. It was held that the proximate cause of damage being sea-water the insured was entitled to damages, the rats being the remote acuse (Hamilton vs Pandrof).

If the loss is caused by the operation of more than one peril simultaneously and if one of the peril is an excepted (uninsured) one, the insurer shall be liable to the extents of the effects of insured peril, if it can be separately ascertained. The insurer will not be liable at all if the effects of the insured peril and the excepted one cannot be separated.The principle of causa proxima applies mostly in fire and marine insurances,it is applicable in the life insurance as well because in 'personal accident policies' the proximate cause of the death should be accident. In case of natural death the insurer is not liable thereon.

First we have to know the meaning of proximate cause, it means the Actual cause of the loss due by which a loss has occurred. No policy covers all types of risk. Insurance company is liable to indemnify only against the insured perils. Causa Proxima is necessary for a valid contract,of insurance.

It has been defined as The Active and most 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.Proximate cause literally means the nearest cause or the direct cause. Thus the insurer is only liable for loss, if the risk insured against is the proximate to the last cause of loss. If only one cause of loss is identified, it is not required to go further if that cause is insured against. If there is a series of causes of damage or loss, then in such a situation the principle of Causa Proxima is applied. The insurer is responsible only if the nearest cause comes within the meaning of the risk insured. Thus if the closest peril is the one insured against risk, the loss of the subject matter would be compensated.

The doctrine of proximate cause applies to motor insurance as to other classes of insurance. The loss or damage to the vehicle is indemnified only if it is proximately caused by one of the insured perils. The doctrine also applies to third party claims. The third party injury or damage must be proximately caused by the negligence of the insured for which he is held legally liable to pay damages.