Research On Judicial Practice Of The Principle Of Proximate Cause Of Insurance Law

Nowadays,insurance has become a kind of important economic systemabout dispesing risks and losses. The basic function of insurance will beachieved through the insurance compensation which insurance companyprovides for the insured. Therefore,when an accident has happened, we mustfind out the causal relationship between the insured event and losses ofobject of insurance.The principle of proximate cause is one of principles thatused to distinguish whether it is necessary for the loss to the subject matterinsured assume insurance responsibility.The principle of proximate cause comes from marine insurance ofCommon Law and it is writed in Marine Insurance Act,1906. However, thenotion of proximate cause is unconscious up to now.Sofor,doctrines aboutdetermination of proximate cause include Time Theory, Effect Theory andCompromise Theory.The status of the principle of proximate cause is different between common lawcountries and civil law countries.Common law countries think highly of theprinciple.The judges developed this principle in the process of trial and createCommon Sense Standards,Law of Chains of Causes, Effect Theory which enrichedthe principle of proximate cause. However, It is regretful that the principle ofproximate cause has run into indifference in continental law system.In china, The principle of proximate cause has been admitted ininsurance practice.Unfortunately, in our current legal system, netherInsurance Law nor Maritime Law leave out this principle.One side, our countryhave been affected by Civil Law System. Research on the principle ofproximate cause was not respected.On the other side,This principle is socomplicated that everybody can hardly think it out definitely. The principle ofproximate cause is the long process of being better adopted by China’slegislation and judicial practice.Because of the differences between legal culture, legal environment andspecific conditions, it is understandable that the legislators cound beindecisive when they erect a new legal principle. However, long-term should not become the block of the development and improvement of law.The lackof the principle on legislation will make the insurance legal systemincomplete.What is more serious is that it has a negative impact on China’sinsurance practice and judicial practice.The principle of proximate cause has very important value aboutimproving legal system of insurance,balancing insurable interest between theinsurance company and the insured, making the settlement of claims smoothand preventing moral risk.what’smore,The principle has the necessity andfeasibility of legislation in our country.Thus,The principle of proximate causeshould have independent status in our legislation. Legislators shoud clearlystipulate the principle of proximate cause in Insurance Law.And, its specificprovisions is explained in judicial interpretation,expressed in insurancecontract.At the same time,weshoud introduce appropriately insurance habitsand customs to make sure the concrete application of the principle ofproximate cause in insurance practice and judicial practice.