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Causation in Hull Insurance - A Comparison of English and Nordic Marine Insurance

Johansson, Helen LU (2013) JURM02 20131
Department of Law
Abstract
In marine insurance causation is a fundamental principle. Causation defines if a loss falls under the insurance policy or if the loss is too remote to be considered under the insurance policy. In order to define the necessary causal connection different principles are used in different countries, or in relation to different perils. In England the proximate cause principle is used while the Nordic Plan mainly uses a principle of apportionment.

According to the doctrine of proximate cause the entire loss shall be attributed to the peril proximately caused the loss. It is also possible for the court to find several proximate causes for the loss and in such a case the insurance policy will respond if one cause is covered while one in not... (More)
In marine insurance causation is a fundamental principle. Causation defines if a loss falls under the insurance policy or if the loss is too remote to be considered under the insurance policy. In order to define the necessary causal connection different principles are used in different countries, or in relation to different perils. In England the proximate cause principle is used while the Nordic Plan mainly uses a principle of apportionment.

According to the doctrine of proximate cause the entire loss shall be attributed to the peril proximately caused the loss. It is also possible for the court to find several proximate causes for the loss and in such a case the insurance policy will respond if one cause is covered while one in not covered. However, the Wayne Tank principle prescribes that if one cause is expressly excluded the assured cannot recover under the insurance policy. There are some exceptions to the proximate cause rule e.g. if the loss is intentionally caused by the assured or if the parties has agreed that a different causal expression shall be used.

In the Nordic Plan, which entered into force the 1st of January 2013, a rule of apportionment is used. This means that the loss can be apportioned between several causes of legal relevance depending on how much they have contributed to the loss. The most important exception to the apportionment rule is that the modified dominant cause principle is used for the combination of marine and war perils. Under the Nordic Plan the parties have, similar as in England, the possibility to change causal expression by contract.

The primary difference between the two systems is that loss can be apportioned between several different perils under the Nordic Plan while the English approach not allows the loss to be distributed over several perils. Even if there is substantial differences between the two systems there are also some similarities e.g. both systems contains some special rules in regard of. war perils and radioactive contamination.

In other common law jurisdictions the proximate cause rule has been used traditionally but some criticism against the principle has been brought forward. In Canada the rule has developed, especially in regard of the Wayne Tank principle, as a response to the criticism. In Australia on the other hand the proximate cause rule is still used but some criticism has been brought forward. (Less)
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author
Johansson, Helen LU
supervisor
organization
course
JURM02 20131
year
type
H2 - Master's Degree (Two Years)
subject
language
English
id
3802166
date added to LUP
2013-06-19 08:21:57
date last changed
2013-06-19 08:21:57
@misc{3802166,
  abstract     = {In marine insurance causation is a fundamental principle. Causation defines if a loss falls under the insurance policy or if the loss is too remote to be considered under the insurance policy. In order to define the necessary causal connection different principles are used in different countries, or in relation to different perils. In England the proximate cause principle is used while the Nordic Plan mainly uses a principle of apportionment.

According to the doctrine of proximate cause the entire loss shall be attributed to the peril proximately caused the loss. It is also possible for the court to find several proximate causes for the loss and in such a case the insurance policy will respond if one cause is covered while one in not covered. However, the Wayne Tank principle prescribes that if one cause is expressly excluded the assured cannot recover under the insurance policy. There are some exceptions to the proximate cause rule e.g. if the loss is intentionally caused by the assured or if the parties has agreed that a different causal expression shall be used.

In the Nordic Plan, which entered into force the 1st of January 2013, a rule of apportionment is used. This means that the loss can be apportioned between several causes of legal relevance depending on how much they have contributed to the loss. The most important exception to the apportionment rule is that the modified dominant cause principle is used for the combination of marine and war perils. Under the Nordic Plan the parties have, similar as in England, the possibility to change causal expression by contract.

The primary difference between the two systems is that loss can be apportioned between several different perils under the Nordic Plan while the English approach not allows the loss to be distributed over several perils. Even if there is substantial differences between the two systems there are also some similarities e.g. both systems contains some special rules in regard of. war perils and radioactive contamination. 

In other common law jurisdictions the proximate cause rule has been used traditionally but some criticism against the principle has been brought forward. In Canada the rule has developed, especially in regard of the Wayne Tank principle, as a response to the criticism. In Australia on the other hand the proximate cause rule is still used but some criticism has been brought forward.},
  author       = {Johansson, Helen},
  language     = {eng},
  note         = {Student Paper},
  title        = {Causation in Hull Insurance - A Comparison of English and Nordic Marine Insurance},
  year         = {2013},
}