You are a claims handler for an insurer. A policyholder of the insurer is a farmer who has submitted a claim in respect of the following losses caused by a lightning strike: Total loss of a tractor that caught fire when it was struck by lightning. Fire damage to crops grown to feed the farm animals. The cost of hiring a replacement tractor. The cost of purchasing replacement feed for the farm animals. Due to administrative issues within the insurer, the agreed claim settlement was significantly delayed. This resulted in additional tractor hire costs due to the excessively long period it took to settle the claim. Consequently, the farmer has also claimed for this additional hire cost. Explain, with justification, the legal doctrine applicable to the claim in respect of the damage caused by the tractor catching fire. Refer to one case in support of your explanation.

The doctrine of proximate cause is applicable to the present case study. It is designed to understand the original cause of loss in the event that one peril causes other losses to occur. Such is the case in the present case study because the claim made by the farmer regarding the loss of the tractor due to fire was caused by an act of lighting. This event later led to a litany of other claims developed due to administrative failures on the insurer’s part to compensate for the first loss. Therefore, the doctrine of proximate cause is applicable to the case study. The case involving the farmer proves the principle of the proximity of cause because he is supposed to prove that not only did the losses claim to arise from the lightning strike but that such peril was covered in the first place. Therefore, it is important to determine the original cause of the loss when making assessing the merits or demerits of such claims.

The case involving Midland Mainline vs. Eagle Star Insurance Company Ltd provides an example in the application of the doctrine of a proximate cause because it outlines a situation where a business suffered losses due to unforeseeable events occurring outside of its scope of operations, but that affect their business. Midland Mainline sued Eagle Star Insurance for losses accrued because the railway management company limited its operating speed due to the implementation of measures to reduce the possibility of accidents on the rail track. It was decided that the insurance company was not liable for the losses damaged because they were due to wear and tear of the rail tracks, which was not part of the scope of the insurance claim.

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Academic.Tips. (2022) 'You are a claims handler for an insurer. A policyholder of the insurer is a farmer who has submitted a claim in respect of the following losses caused by a lightning strike: Total loss of a tractor that caught fire when it was struck by lightning. Fire damage to crops grown to feed the farm animals. The cost of hiring a replacement tractor. The cost of purchasing replacement feed for the farm animals. Due to administrative issues within the insurer, the agreed claim settlement was significantly delayed. This resulted in additional tractor hire costs due to the excessively long period it took to settle the claim. Consequently, the farmer has also claimed for this additional hire cost. Explain, with justification, the legal doctrine applicable to the claim in respect of the damage caused by the tractor catching fire. Refer to one case in support of your explanation'. 9 October.

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Academic.Tips. (2022, October 9). You are a claims handler for an insurer. A policyholder of the insurer is a farmer who has submitted a claim in respect of the following losses caused by a lightning strike: Total loss of a tractor that caught fire when it was struck by lightning. Fire damage to crops grown to feed the farm animals. The cost of hiring a replacement tractor. The cost of purchasing replacement feed for the farm animals. Due to administrative issues within the insurer, the agreed claim settlement was significantly delayed. This resulted in additional tractor hire costs due to the excessively long period it took to settle the claim. Consequently, the farmer has also claimed for this additional hire cost. Explain, with justification, the legal doctrine applicable to the claim in respect of the damage caused by the tractor catching fire. Refer to one case in support of your explanation. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-a-policyholder-of-the-insurer-is-a-farmer-who-has-submitted-a-claim-in-respect-of-the-following-losses-caused-by-a-lightning-strike-total-loss-of-a-tractor-th/

References

Academic.Tips. 2022. "You are a claims handler for an insurer. A policyholder of the insurer is a farmer who has submitted a claim in respect of the following losses caused by a lightning strike: Total loss of a tractor that caught fire when it was struck by lightning. Fire damage to crops grown to feed the farm animals. The cost of hiring a replacement tractor. The cost of purchasing replacement feed for the farm animals. Due to administrative issues within the insurer, the agreed claim settlement was significantly delayed. This resulted in additional tractor hire costs due to the excessively long period it took to settle the claim. Consequently, the farmer has also claimed for this additional hire cost. Explain, with justification, the legal doctrine applicable to the claim in respect of the damage caused by the tractor catching fire. Refer to one case in support of your explanation." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-a-policyholder-of-the-insurer-is-a-farmer-who-has-submitted-a-claim-in-respect-of-the-following-losses-caused-by-a-lightning-strike-total-loss-of-a-tractor-th/.

1. Academic.Tips. "You are a claims handler for an insurer. A policyholder of the insurer is a farmer who has submitted a claim in respect of the following losses caused by a lightning strike: Total loss of a tractor that caught fire when it was struck by lightning. Fire damage to crops grown to feed the farm animals. The cost of hiring a replacement tractor. The cost of purchasing replacement feed for the farm animals. Due to administrative issues within the insurer, the agreed claim settlement was significantly delayed. This resulted in additional tractor hire costs due to the excessively long period it took to settle the claim. Consequently, the farmer has also claimed for this additional hire cost. Explain, with justification, the legal doctrine applicable to the claim in respect of the damage caused by the tractor catching fire. Refer to one case in support of your explanation." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-a-policyholder-of-the-insurer-is-a-farmer-who-has-submitted-a-claim-in-respect-of-the-following-losses-caused-by-a-lightning-strike-total-loss-of-a-tractor-th/.


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Academic.Tips. "You are a claims handler for an insurer. A policyholder of the insurer is a farmer who has submitted a claim in respect of the following losses caused by a lightning strike: Total loss of a tractor that caught fire when it was struck by lightning. Fire damage to crops grown to feed the farm animals. The cost of hiring a replacement tractor. The cost of purchasing replacement feed for the farm animals. Due to administrative issues within the insurer, the agreed claim settlement was significantly delayed. This resulted in additional tractor hire costs due to the excessively long period it took to settle the claim. Consequently, the farmer has also claimed for this additional hire cost. Explain, with justification, the legal doctrine applicable to the claim in respect of the damage caused by the tractor catching fire. Refer to one case in support of your explanation." October 9, 2022. https://academic.tips/question/you-are-a-claims-handler-for-an-insurer-a-policyholder-of-the-insurer-is-a-farmer-who-has-submitted-a-claim-in-respect-of-the-following-losses-caused-by-a-lightning-strike-total-loss-of-a-tractor-th/.

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"You are a claims handler for an insurer. A policyholder of the insurer is a farmer who has submitted a claim in respect of the following losses caused by a lightning strike: Total loss of a tractor that caught fire when it was struck by lightning. Fire damage to crops grown to feed the farm animals. The cost of hiring a replacement tractor. The cost of purchasing replacement feed for the farm animals. Due to administrative issues within the insurer, the agreed claim settlement was significantly delayed. This resulted in additional tractor hire costs due to the excessively long period it took to settle the claim. Consequently, the farmer has also claimed for this additional hire cost. Explain, with justification, the legal doctrine applicable to the claim in respect of the damage caused by the tractor catching fire. Refer to one case in support of your explanation." Academic.Tips, 9 Oct. 2022, academic.tips/question/you-are-a-claims-handler-for-an-insurer-a-policyholder-of-the-insurer-is-a-farmer-who-has-submitted-a-claim-in-respect-of-the-following-losses-caused-by-a-lightning-strike-total-loss-of-a-tractor-th/.

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