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. Corporate insurance is primarily concerned with business risk and managing those risks. These can include insurance for such risks arising of issues such as employer and public liability, export and domestic credit, marine, aviation, life and pensions. A number of key issues associated with insurance will be considered in more detail later in this series.