Causation in Insurance Contract Law

Meixian Song

Document

Index

abandonment, notice of 53, 188
‘a cause’ test 153, 163–165
accident compensation system 77
accidents: all-risk insurance 144; fortuitous 131–132, 151, 185; Inchmaree Clause 158, 162; injuries or death and 67; life cover 165–167; non-marine insurance 165–167; road, liability for 77; Walkhem's interpretation of 69
actual causation 11, 22–27, 37, 168
actual total loss (ATL) 52–53, 179
actuarial vision of insurance 42
agents 158, 173, 176, 189
aggregation clause 194–195, 197–203
aircraft and spare parts, seizure of 116
“all or nothing” approach 93, 95, 136–140, 142, 143
all-risk policy 4, 35, 144–146, 150, 183–184, 187, 215–217, 223–224, 227–229; accidents 144; contractual interpretation 146
Andrew, Smith J. 221
anti-concurrent causes clause 142–143
apprehension of peril and mitigation measures 188–192
‘arising from’, definition of 60, 65
‘arising out of’, definition of 56, 60, 62–65, 173
assured's duty of fair presentation 9, 235–237
assured's non-compliance 234–235
‘attributable to’, definition of 58, 162, 164–165
Australia: ‘arising out of’, definition of 63; burden and standard of proof 208, 224; business interruption cover 171–172; concurrent causes 133, 137; contextual interpretation and common-sense principles 33; FCA test 171–172; foreseeability 102; industrial special risks insurance policy 183; Insurance Contracts Act 1984 233; Marine Insurance Act 1909 40–41; nature of subject matter insured 183; voyage 186; warranties, breach of 233
Bacon's Maxim 40, 44, 106
Bailhache, J. 210, 214
bailment 112
Baker, T. 42
balance of probabilities 83, 85–86, 88, 91–95, 98, 206–215, 218–219, 221–224, 229
barratry 46–47, 147, 155, 159, 209–210, 211n35
Belgium 135
Bennett, H. 151, 153, 164
beyond Reasonable doubt 206, 208, 210
bill of lading 158
Birks, P. 11
Black's law dictionary 123
Branson, J. 211
breakage and leakage 133, 180–181
breakdown of machinery 51–52, 155–157
burden of proof 160, 205–229; all-risk policy 215–217, 223–224, 227–229; assured, burden on 212–213, 225; Australia 208, 224; balance of probabilities 83, 85–86, 88, 91–95, 98, 206–215, 218–219, 221–224, 229; beyond reasonable doubt 206, 208, 210; but-for test 78, 84, 87, 89; cause-in-fact 219; cause-in-law 219; circumstantial evidence 227; common sense approach 224; concurrent causes 215; factual causation 220; fortuity 208–209, 211, 216–217, 221, 225; generic perils 215–217; inherent vice 223; insured perils 205–210, 212–215, 217, 220–221, 224–225, 229; insurers, on 214–215, 229; insuring clauses 228; loss of a chance 93–94; marine risks 84, 85–87, 89–95; materiality 206, 218–219; mysterious disappearance clauses 216, 227–229; non-insured or excluded perils 214–215, 221; perils of the sea 213, 216–218, 220–221, 225–226, 205, 217–218, 220, 225–227, 229; proximate cause 206, 215, 221–224, 229; resumption of innocence 208, 210, 226; seaworthiness 217–218, 220, 224–227, 229; secondary burden 213; standard of proof 78, 91, 206–209, 212, 224; unexplainable losses 217–229; warranties 213; war risks policy 210, 214n52
burst pipes 126
business interruption cover 55, 70–74, 170–172; Australia 171–172; COVID-19 170–172; FCA test 170–172
Butcher, J. 201
but-for test 23, 70–76; ‘attributable to’, definition of 163; burden of proof 78, 84, 87, 89; cause-in-fact 78–79, 83, 88, 91, 94; common sense approach 101; concurrent causes 82–83, 109, 115, 116, 119–122, 128, 138; factual causation 88, 100; failure 84–96; financial gains cases 95–96; foreseeability 80, 101–102; inevitable consequence test 53; interpretation 78, 83–87, –91, 99; liability insurance 96–101; loss of a chance 92–95; material contribution 84, 85–87, 89–95; medical negligence 78, 85–87, 92–96; operation 78–83; proximate cause 50–53, 96–97, 119; remoteness 101–102; seaworthiness 160–162; tort law 77–102, 193; warranties, breach of 235, 236; what or who caused loss 79; wilful misconduct 163, 175–176
Calabresi, G. 42
Canada 169, 189
capture, confiscation and seizure 46, 53–54, 79, 106, 147, 159, 178, 183, 188
cargo insurance 145, 178, 185–186; see also Institute Cargo Clauses
Catastrophe Clause 172
catastrophe reinsurance policy 173n133
causa causans 49, 67
causae sine qua non 74, 140, 163
causal connection test 8, 232–233, 235–237, 239; warranties, breach of 232–233, 235–237, 239
causal involvement test 29
causal limitation 7–8, 27, 29, 31; warranties 233
causal selection test 27, 29
Causa proxima non remota spectatur principle 44–45
cause-and-effect 1, 49–50, 53, 75
‘caused by’, definition of 50–54, 57–67
cause-in-fact 6, 12, 23, 31, 38, 43, 194, 197; bifurcation 24–30, 55; burden of proof 219; but-for test 78–79, 83, 88, 91, 94; counterfactual dependence 70, 78; intervening causes 68
cause-in-law 6, 12, 38, 43, 194, 197; bifurcation 24–30, 55; burden of proof 219; but-for test 78, 88; counterfactual dependence 72; inevitable consequence test 74; intervening causes 68
The Cendor MOPU 144, 164, 185–186, 188; common-sense principles 18; concurrent causes 104, 109–110, 113, 121, 129, 131–135, 139; exclusions 174; external factors 129, 131–134; independent operations 121; inherent vice 4, 110, 129, 131–134; internal causes 132–134; internal factors 129, 131–134; interpretation and causation 36; ‘leg-breaking wave’ 18, 61, 110; nature of subject matter insured 180–181, 185–186, 188; perils of the sea 4, 61, 151–154; proximate cause 4; test of causation 162
certainty: all risks 183; apprehension of peril and mitigation measures 189; burden of proof 207, 211, 217–219, 223; but-for test 90, 93–94; fortuity 185; loss of a chance 92; time order test 48; unexplainability 217–219
Chalmers, M. 4–5, 40, 43, 105, 160, 161
Chalmers’ Marine Insurance Act 1906 105n15
chance, loss of a see loss of a chance
charterparties 47, 108, 111–112, 158, 162, 179
Chinese maritime courts 129–130
circumstantial evidence 227
Clarke, M. 75, 199
clause 90; aggregation 194–195, 197–203; negligence 108, 156–158; perils of the sea 48, 156, 158; pollution 150; proximate cause 158–160; repairs 178, 186; trends clauses 3, 28, 71–74, 194–197, 204; warlike operations 108
clinical negligence 41, 78, 85–87, 92–96
Colinvaux's law of insurance 227
collateral lies, fraudulent claims vs. 237–239
collisions: apportionment 142; delay 178; detention 106; fault 146; liability 150; maritime perils 147; perils of the sea 151
Colman, J. 210, 221
combined causes see concurrent causes
common law 43–44, 88, 90–91, 94, 170, 172
common-sense principles 28–30, 37–39, 44, 107, 146; application 17, 29–30; burden of proof 224; The Cendor MOPU 18; concurrent causes 107, 110, 114, 119, 131; contextual interpretation and 33–34; contractual interpretation 30; interpreting cause of loss 146, 181, 184–185; notion of causation 12–13; recent developments 20; series of questions about 16
competing theories 224, 229
compulsory insurance 62, 77, 97
concurrent causes 67, 82–83, 103–143; “all or nothing” approach 93, 95, 136–140, 142, 143; anti-concurrent causes clause 142–143; apportionment 108, 124–127, 129, 136, 140–142; Australia 133, 137; burden of proof 215; but-for test 82–83, 109, 115, 116, 119–122, 128, 138; The Cendor MOPU 104, 109–110, 113, 121, 129, 131–135, 139; combination of all competing causes 106–107, 119; common sense approach 107, 110, 114, 119, 131; contractual interpretation 104, 113; cumulative damage 123; definition 103–105, 104, 114–125; dominant causes 105, 107; effective cause 111–113, 127; efficiency test 55, 103–104, 107, 121; English cases, rules established by landmark 104, 118, 135; equal efficiency 103–104, 107, 109, 114, 118–123, 124–127, 132, 141, 143; FCA test 103–104, 113, 120, 122, 128; independent operations 121; indispensable contribution to each cause 122, 125; insured perils 103–106, 104–105, 108, 110, 113–114, 116, 118, 121, 125–128, 133–134, 142; insuring clauses 139; intention 103, 107, 111, 116, 136–140; interdependent causes 119, 122, 128, 141; internal causes and external causes 129–135; interpretation 104, 111, 113–114, 123, 125, 136–139, 141, 143; liability insurance 136; marine insurance 105–112, 105–114, 129–130, 137, 140; marine risks 117, 141; necessary condition test 115, 119–121, 141–142; new clauses, wording of 142; non-insured or excluded perils 114, 125, 126–127, 133–135, 139, 142; Norwegian insurance law 141–142; one peril that falls into more than one heading of peril 118; overlap in coverage 116–117, 127, 132; precedents 103–105; proximate cause 103–143; sole causes 67, 104, 106–108, 107, 109, 111–112, 115, 125, 133; time order test 106–107; tort law 36, 82–83, 136; two independent perils of equal efficiency 118–123; war risks policy 108, 116–117, 141, 147
confiscation, capture and seizure 46, 53–54, 79, 106, 147, 159, 178, 183, 188
‘consequences of’, definition of 60–61
‘consequent upon’, definition of 60
construction see interpretation
constructive total loss (CTL) 52, 53, 179, 188, 191
Consumer Insurance (Disclosure and Representations) Act 2012 230
contract 2–3, 8–9, 65–67; affreightment 184; all-risk insurance 146; apprehension of peril 191–192; but-for test 70; ‘caused by’, definition of 62; Clause 158; concurrent causes 118, 127–129, 136–139, 142; freedom of contract 137, 139; insurance contract law 77–91, 97–91; loss of a chance 92–95; marine risks 148–150; perils of the sea 151; reinsurance 172–173; sale 4; shipbuilding 148; variations 160, 163, 165; see-also standard terms; warranties; breach of
contractual interpretation 7, 8, 31, 192, 194; all-risk insurance 146; causation and 29, 36–38; common-sense principles in 30; concurrent causes 104, 113; exclusions 174; maritime perils 150; non-marine risks 166; war risks policy 36
contractual liabilities 2, 62
contractual limitation 28–29; defined 8; recognised 31
contra proferentem policy 137, 138, 146
correlation 1, 235; causation and 198; statistical 16; successive losses and successive causes 53
counterfactual dependence: cause-in-fact 70, 78; cause-in-law 72; Inchmaree Clause 59; insurance causation 70–74; non-insured or excluded perils 71; tort law 23–24, 79; warranties, breach of 237
counterfactual theory 22, 70
COVID-19
assessment of quantum 201–203; BI cover 201–203; business interruption cover 170–172; causation and interpretation 28, 35; FCA test 3
criminal law 2, 5, 11, 23–25, 70, 78, 207
criminal liabilities 2, 6
criminal offences 2
Croom-Johnson, J. 216
cumulative causes 86–87, 125
cumulative damage 123
custom 43, 117–118
decisive cause 67, 236
delay 45–46, 47, 54, 66, 93–94, 149, 174, 177–181, 183; efficiency test 180
de minimis rule 85, 86
detention 106
deviation 41
direct cause 43–49, 66–67, 70, 105, 112, 161, 165
direct damage 70
disappearances see unexplainable losses
dominant cause 104–105, 107, 112, 115, 141–142
double insurance 127
due diligence 154–158, 162
due diligence proviso 154–160
‘due to’, definition of 60
duplicate necessity, defined 20
duty of fair presentation: assured’s 9, 235–237; pre-contractual 239
economic loss 95
Eder, J. 229
Edgarton, H. 26
Edwards-Stuart, J. 222–223
effective cause 46, 51, 67–69, 111–113, 127, 162, 164, 172
efficiency test 27–28, 44–49; chain of efficiency 51–55; common sense approach 44, 55, 103–104, 107, 121; delay 180; effective cause 51; historical development 44, 49–50; inevitable consequence test 53; inherent vice 162; marine insurance 44, 49–50, 51–55, 109–110; necessary condition test 51, 72–73; proximate cause 49–52, 55; reinsurance 173; seaworthiness 109, 164; successive causes 51–55; time order test 51; two independent perils of equal efficiency 118–123; wilful misconduct 176
efficient cause test 44, 56, 74, 76, 115, 162, 164, 169, 175, 178, 201
ejusdem generis approach 149, 156
Employers’ Liability (Compulsory Insurance) Act 1969 62
employment clause 83, 98, 100, 111–112, 202, 218
equal efficiency 165; concurrent causes 103–104, 107, 109, 114, 118–123, 124–127, 132, 141, 143; independent perils 118–123
equivalent causes, theory of 140
Erection All Risks (EAR) policy 187, 223
Erle, J. 161
exclusions see non-insured or excluded perils
expert evidence 1, 7, 126
express warranties 232
external factors: The Cendor MOPU 129, 131–134; concurrent causes 130–131; fortuitous external facts 131–133; inherent vice 129–135; internal causes 129–135; intervening causes 110, 132; intervention, definition of 110, 131–132; marine insurance 129–135; perils of the sea 129–135; proximate cause 129–136; seaworthiness 133–135; subject matter insured 183–184
factual causation 2, 6–7, 9, 12, 31, 88, 100; burden of proof 220; but-for test 88, 100; and legal causation 25, 27–29, 38; machinery 193–194
factual matrix 31, 45, 75
fair presentation, duty of see duty of fair presentation
fault 82, 89, 96, 108, 111, 146, 158, 167–170, 174, 186
FCA test 56, 69, 72–76; Australia 171–172; business interruption cover 170–172; concurrent causes 103–104, 113, 120, 122, 128; contextual interpretation and common-sense principles 33, 35; COVID-19 3; machinery 195, 196–197, 203
financial losses 168, 179, 195
fire 46, 58, 61, 108, 119–120, 123–124, 131, 205, 208–209, 222–223
fixed platforms 148
foreseeability 70, 75, 80, 87, 101–102, 152; but-for test 80, 101–102; machinery 193, 193n1
fortuity: all-risk insurance 144–146, 215–217; burden and standard of proof 208–209, 211; external causes 131–133; inherent vice 131–132; internal causes 131–133; marine risks 148; perils of the sea 151–154; subject matter insured 181, 183–188; unexplainable losses 221, 225
fraud 144, 154, 174, 207–212
fraudulent claims 9, 154, 231; collateral lies vs. 237–239; defined 238; forms of 238; as wilful misconduct 174
freedom of contract 137, 139
freight policies 47–48, 156, 177, 179–180
frustration 179, 212–213
frustration clause, war risks policy 179
good faith 41, 127, 235–236
Green, L. 26
Green, S. 84, 87, 95
gross negligence 169
Gürses, Ö. 234
Guy, J. A. 169
Hague Visby Rules 158
Halsbury 49
Halsbury's laws 127, 156
Hart, H. L. A. 1–3, 5–9, 12–16, 18–21, 27, 31, 37–39, 44, 115, 119–121, 159, 167–168, 231, 239
Hill, J. 175
Hodges, S. 164
Hoffmann, L. 7
Honoré, T. 1–3, 5–9, 12–16, 18–21, 27, 31, 37–39, 44, 115, 119–121, 159, 167–168, 231, 239
hull insurance: delay 177–179, 181; Institute Time Clauses Hulls 51, 146, 150, 155, 157; Institute Voyage Clauses Hulls 150; International Hull Clauses 150; marine risks 149–150; seaworthiness 133, 160, 164–165; voyage 160
Hume, D. 1
Hume's Regularity Theory 10–11
Hurricane Katrina 71, 124
Hurricane Rita 71, 72, 124
Huybrechts, Marc A. 135, 140
identification of cause of loss 144–192; all-risks insurance 144–146; apprehension of peril and mitigation measures 188–192; exclusions 173–188; indemnity 3; marine insurance 146–165; non-marine insurance 165–173; reinsurance 172–173
immediate cause 43–49, 66–67, 80, 146, 162–163, 165, 167–168; checked Inchmaree Clause 148, 150, 154–160; Inchmaree Clause 209
implied warranties 232
Inchmaree Clause: accidents 158, 162; checked 148, 150, 154–160; counterfactual dependence 59; immediate cause 209; marine insurance 148, 150, 154–160; negligence 156–158; perils of the sea 151–160
indemnity principle: but-for test 83, 97, 100, 101, 102; cause of loss 3; concurrent causes 105, 108, 111–112, 116, 123, 126–128, 135–136; machinery 194, 195–200, 202–204; marine insurance 141, 196–198; measure of 2–3; tort 83, 97, 100, 101, 102; United States 127; warranties, breach of 230–231, 239
independent operations 121
indispensable causes 106, 119, 122, 131
industrial diseases 124
inevitable consequence test: but-for test 53; cause-in-law 74; efficiency test 53; insured perils 75; Marine Insurance Act 1906 53, 74–76; non-insured or excluded perils 75; proximate cause 53, 74–76
ingress of water 54, 61, 106, 119, 153, 154, 158, 189, 216, 220–221, 226
inherent vice 36, 162, 178; all risks 223; The Cendor MOPU 4, 110, 129, 131–134; delay 178; efficiency test 162; external factors 129–135; fortuitous external accidents or casualties 131–132; internal factors 129–135; latent defects 131; proximate cause 129–135; seaworthiness 162; sole causes 109–110; subject matter insured 180–187, 118–123; unexplainable losses 223
inland waters 148
Institute Additional Perils Clause (IAPC) 48, 158
Institute Cargo Clauses: A 4, 145, 150, 186–187, 190, 216, 224; all risks 184; ‘attributable to’, definition of 58; B 145, 146, 150; burden of proof 216, 224; C 145, 150; FPA 58
Institute Clauses: Institute Freight Clauses Time 150; Institute Freight Clauses Voyage 150; Institute Strikes Clause 117, 190; Institute Strikes Riots and Civil Commotions Clause 58; Institute Time Clauses Hulls 51, 58, 146, 150, 155, 157, 180; Institute Voyage Clauses Hulls 150; Institute War Clause 58, 117; see also Institute Cargo Clauses
insurable interest 4, 41, 45, 177, 194
insurance 144–145; unexplainable losses 217, 220–222, 224–228; wear and tear 152, 156–157, 180–181, 183; see also liability insurance
Insurance Act 2015 9, 160, 230–231; assured's duty of fair presentation 235–237; breaching terms of insurance contracts 232–235; cause and effect 231; cause of loss 231–239; fraudulent claims vs. collateral lies 237–239; “qualifying breach” 236; “some bearing” 235; “terms not relevant to the actual loss” 234; “warranties and other terms” 232; see also warranties, breach of
Insurance Contracts Act 1984 233
insurance liability, warranties, breach of 230–239
insured pays 5
insured perils 2–4; apprehension of peril and mitigation measures 189–190, 192; barratry 209; burden of proof 205–210, 212–215, 217, 220–221, 224–225, 229; business interruption cover 170; ‘caused by’, definition of 57–58; concurrent causes 103–106, 104–105, 108, 110, 113–114, 116, 118, 121, 125–128, 133–134, 142; definition 144; delay 177–180; excluded peril 127–129; inevitable consequence test 75; marine risks 148, 150; one peril that falls into more than one heading of peril 118; proximate cause 57–58; ‘proximately’, variations as to 58, 59; seaworthiness 163–165; series of related perils 51; subject matter insured 118–123; unexplainable losses 217, 220–221, 224–225, 229; uninsured peril 126–127; wilful misconduct 177; see also non-insured or excluded perils: perils of the sea
insuring clauses 42, 67, 117; burden of proof 228; concurrent causes 139; interpretation 29, 31, 35, 113, 144, 146, 155, 167–168, 170, 170–171, 173; machinery 195–197; risks 8, 34, 37
intention: but-for test 97; ‘caused by’, definition of 57–58; concurrent causes 103, 107, 111, 116, 136–140; efficiency test 55
interdependent causes 51, 119, 122, 128, 141
internal causes: apportionment 129; The Cendor MOPU 129, 131–134; concurrent causes 129–135; external causes 129–135; fortuitous external facts 131–133; inherent vice 129–135; intervening causes 110, 132; marine insurance 129–135; marine risks 149; perils of the sea 129–136, 152–153; proximate cause 129–136; seaworthiness 133–135; subject matter insured 181; see also inherent vice
International Hull Clauses (IHC) 150
interpretation 10–12, 175–177, 179, 182, 185, 191; actual causation 22–24; ambiguity 31, 65, 137, 138, 143, 181; business interruption claims 55; but-for test 56, 78, 83–87, 89–91, 99; and causation 34–37; ‘caused by’, definition in 57–58; cause-in-fact and cause-in-law 24–30; common-sense causation 12–21, 33–34, 104, 111, 113–114, 123, 125, 136–139, 141, 143; contextual 33–34; contra proferentem rule 137, 146; ejusdem generis rule 149, 156; historical development 43–44; identification of cause of loss 153–154, 158–165; juridical approaches 30–31; marine insurance 105, 105–106; noscitur a sociis rule 149; textual interpretation 31–33; tort 78, 83–87, 89–91, 99
intervening causes 52–55, 67–70, 79–80
jettison 61, 146–147
knowledge 127, 164, 186
latent defects 131, 155
Law Commission 148; warranties, breach of 232–233
legal causation 78, 82, 88, 94, 100; see scope of liability
legal liability 6, 25, 37, 56, 62; ascription 11, 24; causation for 31; judgments on 12; language to truncate 8–9; in tort 194
Lewis’ theory 22–23
liability insurance: but-for test 96–101; concurrent causes 136; exclusions 169–170; fault 167–170; identification of cause of loss 167–170; negligence 167–170; non-marine risks 165; professional indemnity insurance 65, 97, 167–170; tort 43, 96–97
life assurance 41
Lloyd's SG form 155, 177
loss of a chance: burden of proof 93–94; but-for test 93–94; material contribution 84, 85–87, 89–95; medical negligence 92–95; standard of proof 78, 91; tort 92–95
loss of time clauses 178–180, 194
machinery 58, 150, 154, 193–195, 210; aggregation of losses 197–201; breakdown 51–52, 155–157; calculation of losses 195–197; COVID-19-related BI cover 201–204; factual causation 193–194; failure of 47; FCA test 195, 196–197, 203; foreseeability 193, 160; indemnity principle 194, 195–200, 202–204; insuring clauses 195–197; Marine Insurance Act 1906 194–195, 198; quantification 194–196, 197, 203
Malone, Wex S. 26
marine insurance: all risks 145; burden of proof 205–229; common sense approach 107; concurrent causes 105–112, 105–114, 129–130, 137, 140; definition 147; efficiency test 44, 49–50, 109–110; historical development of tests 43–55; identification of cause of loss 146–165; Inchmaree Clause 148, 150, 154–160; indemnity principle 146, 149, 156–158; proximate cause 105–114; seaworthiness 109; voyage policies 48, 153, 160–163; warranties, breach of 230–232, 236–237; war risks 116–117; see alsohull insurance; inherent vice; Institute Clauses; Marine Insurance Act 1906; perils of the sea; seaworthiness, warranties of; time policies
Marine Insurance Act 1906 4–5, 9; all risks 145; apprehension of peril and mitigation measures 188–191; Australia 40–41; but-for test 70–76; ‘caused by’, definition of 57, 65; delay 177; efficiency test 44, 49–50; exclusions 173–174; historical background 43–55; identification of cause of loss 146–149; included and excluded losses 41; inevitable consequence test 53, 74–76; interpretation 105–106; machinery 194–195, 198; marine risks/perils 52, 146–149; perils of the sea 151; privity of assured 133; ‘provisions of this Act’ 41; proximate cause 41; seaworthiness 160–164; subject matter insured 180–183; successive causes 50–51; time order test 50–51; ‘unless policy otherwise provides’ 41; utmost good faith 41; warranties, breach of 41, 230–232, 236–237; war risks policy 52; wilful misconduct 174, 176
marine risks 146–150, 160; burden of proof 117, 141; defined 147–148; Marine Insurance Act 1906 52; maritime perils 146–149; war risks policy and 147
maritime perils: contractual interpretation 150; defined 149
material contribution 84, 85–87, 89–95; to risk 84, 87, 91; injury rule 84, 85, 87
materiality 43, 51, 53, 84, 85–87, 89–95; burden of proof 206, 218–219; warranties, breach of 235–236, 239
matrix of fact 31, 45, 75
Mayban test 18, 135, 153, 185, 187
McArthur, C. 161
medical negligence 41, 78, 85–87, 92–96
Merkin, R. 42, 100, 103, 153, 197, 234
mesothelioma 83, 90–91, 97–100
method of elimination 222, 224
Mill, J. S. 14
Miss Jay Jay principle 104, 109, 114, 118, 121–124, 127, 131–134, 139
mitigation 188–192
Moore-Bick, J. 97, 185, 199
Moore, M. 23–24, 26, 55, 68, 70–71, 78–79, 84, 157
moral hazard 207
Morgan, J. 94
mortality, definition of 146
motor insurance 174
multiple causes see concurrent causes
Mustill, J. 213
mysterious losses see unexplainable losses
natural events 68, 69
nature of subject matter insured 35, 50, 96, 126, 129, 133, 144, 155–156, 174, 179, 180–188; inherent vice 181–188; Marine Insurance Act 1906 149; packing, insufficiency of 186–188
nearest cause test 45, 50, 109
“nearest in time” test 48, 50
necessary condition test 23, 51, 80; concurrent causes 115, 119–121, 141–142
necessity: defined 20; test 178
negligence 80, 85; collisions 108, 150; factual causal link 78; forms 159; gross 169; Inchmaree Clause 156–158; liability insurance 167–170; material contribution 88–90; medical negligence 41, 78, 85–87, 92–96; privity of assured 158, 161, 164–165; professional indemnity insurance 97; sue and labour 189; wilful misconduct 175–176
Neill, L. J 166
net, causation as a 50
New Appleman Insurance Law Practice Guide 122
New Zealand 40–41
non-insured or excluded perils: burden of proof 214–215, 221; concurrent cause 114, 125, 126–127, 133–135, 139, 142; counterfactual dependence 71; inevitable consequence test 75; marine risks 149; seaworthiness 160, 163–164; successive torts 82–83
non-intervention principle 119n64
non-marine insurance: accidents 165–167; business interruption cover 170–172; fault 167–170; identification of cause of loss 165–173; liability insurance 167–170; marine insurance 147–148; motor insurance 81, 174; negligence 167–170; reinsurance 172–173
non-marine risks, contractual interpretation 166
Norwegian Marine Insurance Plan 141–142
noscitur a sociis approach 149
notice of abandonment 53, 188
novus actus interveniens 52, 68
occurrence, definition of 172–173
O’May, D. 115, 116
one cause see sole-cause situations
ordinary breakage and leakage 133
ordinary perils of the sea 46, 160, 225
ordinary wear and tear 133, 156, 180–181
overlapping losses 116–117, 127, 132
packing, insufficiency of 186–188
Parks, Alex L. 115
partial losses 53, 154
Pearson, J. 213
perils of the sea 106–107, 111, 141, 151; burden of proof 213, 216–218, 220–221, 225–226, 4, 61; Clause 48; collisions 48, 151, 178; combination of perils 142; definition 131–134, 148, 149, 151–154, 216; delay 177–180; extraordinary 135; foreseeability 152; fortuitous accidents or casualties of the sea 151; frustration 212–213; historical development 46; identification of cause of loss 151–154; immediate cause 109; Inchmaree Clause 151–160; inherent vice 110, 129–135, 144; internal causes and external causes 129–135, 152; marine perils 147, 148; operative 134; ordinary perils 46, 134–135, 160, 225; proximate cause 4, 50, 106, 152, 154, 158–160, 163–166, 171, 175; sea water, incursion of 151, 153–154; seaworthiness 160, 218, 225–226; time order 46; unexplainable losses 220–221, 225–226; weather 151, 152; wind and waves, ordinary action of the 152–154, 216, 223
perils see insured perils;see perils of the sea
Personal Accident policy 166
personal injury 62–63, 94
policy limitations 3, 7–8, 27, 39, 120, 167, 168
pollution 79–80, 150
The Popi M case 214, 220–224
Popplewell, J. 224
Porat, A. 220
precedents 5, 50, 103–105, 131, 148, 158, 163, 166, 181
preceding causes 107
predominant cause 49, 49–51, 175; efficiency test 49–51
presumptions: burden of proof 205, 217–218, 220, 225–227, 229; of innocence 208, 210, 208, 210, 217–218, 220, 224–227, 229
prima facie evidence 182, 213–215
privity of assured 133, 158, 161, 164–165
probabilistic causation 219
professional indemnity insurance 65, 97, 169
promissory warranty 9, 160, 232
proof see burden of proof;see standard of proof
property insurance 102, 126, 137, 144–145
protection and indemnity (P&I) liability insurance 61–62
proximate cause 2, 6–7, 97, 167–170; apprehension of peril and mitigation measures 188–192; burden of proof 206, 215, 221–224, 229; but-for test 70–76, 96–97, 119; Causa proxima non remota spectatur principle 44–45; ‘caused by’, definition of 57–58; collisions 81, 106–108, 149; common sense approach 44, 103–143; damage 4; defined 9; definition 49–51, 62; efficiency test 49–52, 55; external causes 129–135; factual matrix 75; historical background 43–55; identification of cause of loss 172–173; inevitable consequence test 53, 74–76; inherent vice 129–135; internal causes 129–135; loss in claims 3–4; marine insurance 58, 61, 63, 65, 105–114; packing, insufficiency of 186–188; perils of the sea 4, 50, 106, 152–154; proximate, definition of 49; ‘proximately’, variations as to 58, 65–67; seaworthiness 160, 164–165; successive causes 50–51; tests of causation 40–76; time order test 48, 50–51; tort 96–97; unexplainable losses 221–224, 229; warranties, breach of 230–239; wilful misconduct 175–176
‘proximately’, variations as to 58, 65–67
proximity doctrine 41, 51, 55, 57–66, 74; warranties, breach of 230
quantification machinery 194–196, 197, 203; see also machinery
quantum of loss proof 206
real cause 67, 153, 185, 221
reasonable contemplation test 75
reasonable expectations 137
reinsurance: efficiency test 173; occurrence, definition of 172–173; one event, definition of 173
remoteness: but-for test 101–102; damage 6, 25, 26, 44; delay 178; historical development 44; marine insurance 50, 107, 112, 132; reinsurance 173; succeeding causes 107; tort 101–102
repairs: delay 45–46, 47, 66, 177–178; discharging and reshipment 178; inherent vice 178, 180–181; negligence 155; proximate cause 49–50, 81; remoteness 101
restraint of princes 52–53
‘results from’, definition of 60
risk theory 61
Road Traffic Act 1988 174
Rothstein, P. F. 16
safety regulations, breach of 174, 178
scalarity of causation 55–57
scope of liability 6, 8, 26–27, 78, 101, 193–194, 198, 204–205
scuttling 174, 176, 207–208, 210–211, 213
seaworthiness, warranties of 109–111; ‘a cause’ test 163–165; ‘attributable to’, definition of 162, 164–165; burden of proof 218, 220, 225–226; but-for test 162–165; definition 133–134, 160–161; due diligence 162; effective cause 162, 164; efficiency test 134, 164–165; external causes 133–135; goods 162–163; hull insurance 133, 160, 164; identification of cause of loss 160–165; implied warranties 160–161, 165; inherent vice 162; internal causes 133–135; interpretation 166; Marine Insurance Act 1906 160–161, 164; non-insured or excluded perils 160, 163–164; perils of the sea, interaction with other 160, 162, 165; presumptions 225–227; privity of assured 161, 164–165; proximate cause 129–135, 163–165; reasonably, meaning of 160; test of causation 160–165; time policies 160–161, 163–164; unexplainable losses 225–226; variation of contracts 160, 165; voyage policies 48, 161, 163, 225–226; weather 226, 227; wilful misconduct, definition of 163
seizure, confiscation and capture 46, 53–54, 79, 106, 147, 159, 178, 183, 188
sexual assault 63
Shelltime 112
‘Sherlock Holmes dictum’ 224
shipbuilding contracts 148
Simon, J. 42
sine qua non 7, 23, 27, 78, 101n104
Single Business Interruption Loss (SBIL) 202
single causes see sole-cause situations
Siopis, J. 4
sole-cause situations 85, 92; ‘arising out of one event’, definition of 173; concurrent causes 67, 104, 106–108, 107, 109, 111–112, 115, 125, 133; ‘solely, definition of 111
standard of proof 78, 91, 206–209, 212, 224; see also burden of proof
standard terms see Institute Clauses
Stapleton, J. 5, 6, 9, 11, 13, 20, 26, 77, 78, 95, 193–194
Steele, J. 42
Stein, A 220
strict liability 80, 96
strike clauses 130, 147–150
Stuart-Smith, L. J. 209
subject matter see nature of subject matter insured
subrogation 77, 172, 177
successive causes 50–55, 107; correlation 53
sue and labour 189–192
Summers, A. 20–21
suspensive effect 232
‘take the plaintiff as they find him’ principle 81–83
terminology 9, 20, 49, 55, 57
terrorism 80
tests of causation 40–76, 158; application 12; but-for test 84; historical development 43–55; Marine Insurance Act 1906, proximate cause under 40–55; proximate cause under 40–76; seaworthiness 160–165
textual interpretation 31–33
third possible solution theory 221
time charterparties 111–112
time order test 163–164; certainty 48; chain of events 55; charterparty clauses 47; concurrent causes 106–107; delay 47, 178; efficiency test 53; historical development 43–44, 46, 48; immediate or direct loss 43–44; marine insurance 50–51, 107; materiality test 43; perils of the sea 46; proximate cause 53; successive causes 53
time policies 156, 160–161, 163–164; Institute Time Clauses 51
tortious liabilities 2, 6, 62, 90
tort law 5, 9, 43; accident compensation system 77; breach of duty as causing loss 78–80, 83, 90, 92, 101; burden of proof 78, 84, 87, 89; but-for test 77–102; concurrent causes 82–83, 136; damages 77–86, 88–96, 101–102; factual causation 88, 100; fault 82, 89, 96, 108, 111; foreseeability 80, 87, 101–102; intervening acts 79–80; material contribution 84, 85–87, 89–95; multiple causes 84; necessary condition test 80; one tort scenarios 79–80; proximate cause 96–97; remoteness 101–102; strict liability 80, 96; subrogation 77; successive torts 80–83; ‘take the plaintiff as they find him’ principle 81–83; see also negligence
total loss 146, 155–156; actual total loss 52–53, 179; constructive total loss 52, 53, 179, 188, 191; fire 163
towage 186n186
trends clauses 3, 28, 71–74, 194–197, 204
Tucker, J. 151–152
unexplainable losses: burden of proof 217–229; circumstantial evidence 227; definition 217; elimination approach 220–224; “evidentiary gap” cases in tort 218–220; fortuity 221, 225; mysterious disappearance clauses 216, 227–229; perils of the sea 220–221, 225–226; The Popi M 220–224; presumptions 217–218, 220, 224–227, 229; proximate cause 221–224, 229; seaworthiness 225–226; third possible solution theory 221; unexplainability 217–224
uninsured risks see non-insured or excluded perils
United States: concurrent causes 108, 122, 128, 137, 143; indemnity principle 127; intervening causes 70; noninsured or excluded perils 128
unities doctrine 173
‘unless policy otherwise provides’: definition of 41
unseaworthiness see seaworthiness; warranties of
utmost good faith 41, 127, 235–236
vicissitude of life principle 82, 82n26
voyage policies 4, 18, 46, 49, 52–54, 135, 146, 153, 160–163, 180–182, 180–181, 184–186, 188, 225–226; animals 146; Australia 186; commencement 50, 162, 226; designated 182, 188; failure of machinery 47; implied warranty in 160–161; marine insurance 48; perils of sea 45, 225–226; sea conditions and weather 186; seaworthiness, warranties of 48; shipping 130; threat of perils 188; unexplainability 217; unseaworthiness in 48, 110; vessel Kastor Too 119
warehouse policies 129
war-like operations 108, 116–117
warn, failure to 83
warranties, breach of 231–239; assured's non-compliance 234–235; Australia 233; burden of proof 213; but-for test 235, 236; causal connection test 232–233, 235–237, 239; express warranties 232; free of capture or seizure 147; implied warranties 160–161, 165, 232; indemnity principle 230–231, 239; insurance liability 230–239; Law Commission 232–233; marine insurance 230–232, 236–237; Marine Insurance Act 1906 41, 230–232, 236–237; materiality 235–236, 239; promissory warranty 9, 160, 232; proximate cause of loss 230–239; proximity doctrine 230; standard terms 232–235; suspensive effect 232; warranties, defined 232; see also seaworthiness; warranties of
war risks policy 52, 66, 116–117, 147, 179, 210, 108, 116–117; contractual interpretation 36; frustration clause in 179; Marine Insurance Act 1906 52; maritime risks and 141, 147
water, ingress of 54, 61, 106, 119, 153, 154, 158, 189, 216, 220–221, 226
Wayne Tank principle 103–104, 113–116, 118, 121–124, 131, 135–139, 142
wear and tear 133, 152, 156–157, 180–181, 183, 183n176
weather 45, 54–55, 61, 151–153, 177–178, 181, 186, 226, 227; see alsowind and waves, ordinary action of
wilful misconduct of assureds 174–177; agents 176; apprehension of peril and mitigation measures 176; burden of proof 207, 209–211, 175–176; definition 174–175; efficiency test 176; fraudulent claims 174; inherent vice 178; insurable interest 177; Marine Insurance Act 1906, exclusions under 174–177; negligence 175–176; proximate cause 175–176; safety regulations, breach of 174, 178; scuttling 174, 176; seaworthiness 174
wind and waves, ordinary action of 109, 134, 152–154, 216, 223
‘winner-takes-all-principle’ 135
Wright, Richard W. 3, 6, 26, 194
wrongful act policy 7–8, 58, 115, 161, 201, 230

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