The cargo on a ship was insured against loss on account of sea water. Some rats in the ship caused a hole in the bottom of the ship resulting in the entry of sea water into the ship resulting in the loss of the cargo. Th

Principle of Maxim of 'Causa Proxima' (Proximate Cause): Measuring the quantum of damage from loss is another significant aspect for all kinds of insurance. The loss must be caused by the peril insured against, i.e., cause of loss. Hence insurance contracts the rule of 'proximate cause', the maxim 'causa proxima non remota spectator' which means that proximate and not the remote cause shall be a taken as the cause of the loss. It means the immediate and not the remote cause is to be considered in measuring the damages. This rule of causa proxima, i.e., proximate cause and Torts. In Torts the defendant (person committing wrong) is liable only for those consequences which are not too remote from his conduct. No defendant can be made liable ad infinitum for all the consequences which follow his wrongful act. On practical grounds, a line must be drawn somewhere, and certain kinds or types of losses, though a direct result of defendant's conduct may remain uncompensated. The same principle is applicable in insurance contracts. In the given case, the rats were a remote cause of loss and sea water was a proximate cause. Since the loss was on account of sea water, which is an insured peril the insurer is liable to pay for the loss.