What does 'proximate cause' refer to?

'Proximate cause' refers to the most direct cause of loss or damage in the context of insurance. This concept is vital in determining liability and coverage in claims. It focuses on identifying the event that is closest in a causal chain to the loss, rather than considering all events that may have contributed to it.

For example, if a tree falls on a house due to a severe storm, the proximate cause of the damage to the house is the falling tree, which is a direct result of the storm. Understanding proximate cause helps insurers to assess claims accurately by establishing the primary incident that resulted in the loss.

In contrast, identifying the last event in a series of events might overlook critical factors leading to the loss, while a minor cause of an injury does not hold significant weight in establishing accountability. A cause that is difficult to determine challenges the clarity needed in evaluating a claim, thus moving away from the definitiveness that proximate cause provides in understanding the root of the loss.