CONSUMER ADVICE

The efficient cause which brings about a loss with no other intervening cause which breaks the chain of events.

Example:
Firemen remove undamaged stock from a burning building to avoid its involvement in the fire. It is stacked in the open yard and subsequently damaged by rain. Was the proximate cause of the damage the fire or the rain ?

If the rain damage occurred before the Insured had an opportunity to protect it then the proximate cause of the damage would be the fire and fire is covered under a fire policy. However, if the stock was left unprotected for an unreasonably long period, the rain would be a new and independent cause of damage and damage caused by rain may not be covered under a policy.

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