Fire Insurance

Causa Remota And Causa Proxima

These terms themselves do not sound very familiar.

Here in the Philippines, when you listen to local insurers this theory of casualty is however well known all over Europe and as far as we know also in the USA.

What is it all about??? We are talking about the Farthest (remota) and the Nearest (proxima) cause of an event. It is important to know that here in the Philippines; they follow the theory of the Causa Proxima.

Example 1:

A tsunami starts in China Sea causing sky rising waves that reach over some parts of the Philippines towards shores and inland. The strong water caused to break an electrical post, the post fell on a house, which sets it on fire due to the short circuits caused by the electrical post. The question is how far is this insured under the fire insurance? The nearest cause of the event is the tsunami and the farthest is the fire.

Conclusion:

If you DID NOT insure tsunami, THEN this claim is NOT covered under the fire insurance.

Example 1:

A strong typhoon occurs in a certain area. Due to the strong wind, a branch of a tree fell down and damages your windowpane. Rain showers then and water enters your property and damages the contents and the walls. Suppose that BROAD WATER was insured on your fire insurance BUT NOT typhoon, the nearest cause is BROAD WATER damage and the farthest cause is typhoon.

Conclusion:

Even when broad water damage is insured BUT NOT typhoon, the insurer will deny the claim based on the PROXIMA theory since typhoon was NOT included in the policy. YOU CANNOT claim the water damage under your fire insurance.

Of course, there are many more examples like these.

You will not be surprised if you have noticed that AIC always advises their clients to avail for a COMPREHENSIVE insurance package. Together with our special NIB clauses is a chance of disappointment in case of claims denial and minimization.

Even when we show you our breakdown per peril in our proposals, the message is always to AVAIL FOR THE COMPLETE PACKAGE ALWAYS!

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