Loss

Clarissa Moraga
Aria Castro
Monica Malilin

Sec 83-84
Loss - the injury or damage sustained by the insured in consequence of the happening
of one or more of the accidents or misfortune against which the insurer, in
consideration of the premium, has undertaken to indemnify the insured

Property Insurance
Total loss - the pecuniary detriment consisting the total cash value of the property
Partial loss - the reduction of the value thereof
Life Insurance - Loss occurs when the insured dies while in health insurance - loss
occurs in case of injury to or disability of the insured.

Proximate Cause - that cause which, in natural and continuous sequence, unbroken by
any efficient intervening cause, produces the injury, and without which the result would
have not occured.
Remote Cause - that cause which some independent force merely took advantage of to
accomplish something which is not the natural effect thereof.

Efficient Cause - the proximate cause to the loss, not necessarily in time, but in
efficiency.
Immediate Cause - suggests proximity in time to the loss - a situation where at least 2
causes are involved; one cause occurs after the other.

Peril insured against - the policy should be examined to determine what are the perils
insured against and the perils that are excluded.

Sec. 85
An insurer is liable where the thing insured is rescued from a peril insured against
that would otherwise have caused a loss, if, in the course of such rescue, the thing is
exposed to a peril not insured against, which permanently deprives the insured of its
possession, in whole or in part; or where a loss is caused by efforts to rescue the thing
insured from a peril insured against.

Extension of principle of proximate cause

1. Where the loss took place while being rescued from the peril insured against - The
insurer is liable where the insured is permanently deprived of the possession, in whole
or in part, of the thing insured by a peril not insured against provided it is shown that
said property would have been lost by the peril insured against provided it is shown
that said property would have been lost by the peril insured against had there been no
attempt to rescue it.
2. Where the loss is caused by efforts to rescue the thing insured from a peril insured against
It is the efforts to rescue the thing caused the loss

Sec 86

Where a peril is especially excepted in a contract of insurance, a loss, which would not
have occurred but for such peril, is thereby excepted although the immediate cause of
loss was a peril which was not excepted.

Where proximate cause is an excepted peril

The insurer is not liable if the proximate cause of the loss is a peril from the policy
although the immediate cause of the loss was a peril which was not excepted.

Sec. 89

An insurer is not liable for a loss caused by the willful act or through the connivance of
the insured; but he is not exonerated by the negligence of the insured, or of the
insureds agents or others.

SUMMARY OF REPORT ON LOSS

REQUISITES FOR RECOVERY UPON INSURANCE

1. The insured must have insurable interest in the subject matter;

2. That interest is covered by the policy;
3. There must be a loss; and
4. The loss must be proximately caused by the peril insured against.
Loss for which insurer is liable
1. Loss the proximate cause of which is the peril insured against;
2. Loss the immediate cause of which is the peril insured against except where the
proximate cause is an excepted peril;
3. Loss through negligence of insured except where there was gross negligence
amounting to willful acts;
4. Loss caused by efforts to rescue the thing from peril insured against; and
5. If during the course of rescue, the thing is exposed to a peril not insured against,
which permanently deprives the insured of its possession, in whole or in part.

 Loss for which insurer is not liable

1. Loss by insureds willful act;

2. Loss due to connivance of the insured; and
3. Loss where the excepted peril is the proximate cause.

Loss caused by negligence of insured.

1. Where there is ordinary negligence.

It is a basic rule in insurance that the carelessness and negligence of the insured or his
agents constitute no defense on the part of the insurer.

2. Where there is gross negligence.

The gross negligence or recklessness on the part of the insured, the consequence of
which must have been palpably obvious to him at the time, will relieve the insurer from
liability.