Subject to Marine Insurance Act and unless the policy otherwise provides, an insurer is liable for any loss proximately caused by a peril insured against.
Where there is a chain of events leading to a loss, the proximate cause is the most dominant and effective cause, not the nearest cause in time.
For E.g.
A ship is scuttled, the nearest cause in time is the seawater entering the ship but the proximate cause is the act of scuttling.
