Study On Principle Of Proximate Cause And It's Application On Insurance Law

Principle of Proximate Cause (hereinafter P.P.C.) together with principle of utmost good faith, principle loss compensation, principle of insurable interest are called the four basic principles in insurance law, which are used to determine the causality between the risk of accept insurance and the loss of accept insurance. The meaning of P.P.C. is that the insurer bears the compensation obligation which regulates the risk of accept insurance as proximate cause and vice versa. P.P.C. has become the consuetude of international insurance claim settlement P.P.C. has the signification of direction for defining the scope of liability of the insurer, resolving the difficulties in insurance claim settlement. There are deficiencies in the study of P.P.C. in Chinese insurance law theoretically and practically, which is the obstacle in the development of the insurance market. The thesis which takes the P.P.C. as the object, tries to make the analysis and summarization of P.P.C. systematically. Besides introduction and conclusion, there are four chapters, and the main content is as follows:First chapter is the introduction of origin and development in history of P.P.C.. There are three sections in this chapter. Firstly, the author defines connotation and extension of P.P.C. and expounds the content of P.P.C. further by virtue of the contrast between the definition of P.P.C. and the other relevant definitions. Secondly, the author summarizes the process of historic evolvement with the line of"time standard","effectiveness standard", and"common sense standard"of P.P.C.. Thirdly, the author points out the important role of P.P.C. in insurance claim settlement and the positive meaning of P.P.C. in the realization of the function of insurance and the development of the insurance.Second chapter is the contact and distinction of the theories beween P.P.C. and causation, which has three sections. P.P.C. roots in the theory of causation among which the opinions and determination rules has the large guiding and introduction meaning for P.P.C. The author introduces the typical theories in common law system and continent law system respectively, such as condition theory, comparative causation theory, rule scope theory, substantial elements rule, direction result theory and foresee ability theory etc., and makes a comment on these typical theories. Thirdly, the author summarizes the characteristics of P.P.C., that is, emphasizing particularly on the aspect whether the insurable liabilities is determined, rather than the elements like donkey act, and the violative. There are specificities in the scope of causation and the scope of compensation.Third chapter is the application and onus probandi of P.P.C., which is the keystone of the thesis. P.P.C. is not difficult for understanding. The key of P.P.C. lies in how do exercise it properly facing the complicated reality. The first section of this chapter distinguishes four situations singular cause for loss, plural causes concurrent for loss, plural causes disconnected for loss, plural causes sequent for loss, expatiates respectively the application of the rules of P.P.C. in different situations and makes the abstract rules into embodiment. During the process of dissertation, the author combines lots of the typical prejudications, in order to make a clear analysis of the rules. When divarication happens in determining proximate cause between insurer and insurant, there are the allocation of onus probandi in the application of law. Concerning the allocation, based on the principle- the claimant should provide the evidence for their claims, it is fair and rational that insurer should bear the onus probandi of proximate cause.Forth chapter is the limitation and perfecting of P.P.C.. There are three sections in this chapter. Firstly, the author analyzes that the traditional P.P.C. which makes the strict limitation for the insurance scope based on the protection of the interest of insurer. Following the development of insurance and the specialization of the insurance market, P.P.C. is more and more used by the insurer for escaping the liability, which consequently damages the legal rights and interests of insurant and leads to unbalance the interest of insurer and insurant. Secondly, the author analyzes the determination of predisposing cause in accident insurance and the bearing of liability, thereby educes the system of compensation by proportion (hereinafter S.C.P.) which is the late development of P.P.C.. S.C.P. can resolves the maladies of the all-or-nothing way of onus probandi allocation in traditional P.P.C., balances preferably the interest of the contract parties, and realizes the whole hog win-win of the parties. The thesis finally points out the necessity of radicating the P.P.C. in Chinese insurance legislation and proposes to introduce P.P.C. systematically and inextenso, which can greatly promote the Chinese insurance.