Indemnity is a term that applies when the event insured against happens. This implies that the insured will be returned to the position prior to the loss. In this event the insured must prove monetary loss, and prove the extent or value of the loss. If the insured has a right to a claim in respect of the loss against a third party, this right is transferred to the insurer. In all cases the Insurer will sue in the name of the insured because to allow the insured to recover in their own right would infringe the principle of indemnity.
Contribution is a principle that applies when a risk is insured twice.
Assuming the risk is not underinsured the insurers will each bear a proportion of the total. To allow another rule would infringe the principle of indemnity. Proximate cause has to do with the chain of causation. The loss to the insured must not have been caused by an intervening cause that changes the change of events. Typical events that individuals insure against include death or personal injury, loss of earnings due to serious illness, loss of or damage to the family home or other property by fire, flood, or subsidence, the theft of valuable possessions and any other foreseeable risks.