In the context of life insurance in India, "proximate cause" refers to the immediate or direct cause of an insured event that leads to the loss or death of the policyholder. It is a crucial concept used by insurance companies to determine whether a claim is eligible for coverage or not.

When an insured event occurs, such as the death of the policyholder, the insurance company investigates the circumstances surrounding the event to determine the proximate cause. The proximate cause is the primary reason or event that directly leads to the loss covered by the insurance policy. It is the immediate cause that sets in motion a chain of events resulting in the loss.

For example, let's say an individual has a life insurance policy and passes away due to a car accident. The proximate cause of death in this case would be the car accident itself. The insurance company would analyze whether the death was a direct result of the accident or if there were any intervening factors that contributed to the loss.

The concept of proximate cause helps insurance companies determine whether the loss falls within the scope of coverage provided by the policy. If the proximate cause is covered by the policy terms, the claim is likely to be eligible for benefits. However, if the proximate cause is excluded or not covered, the claim may be denied.

It's important to note that the specific definition and interpretation of proximate cause may vary slightly depending on the terms and conditions outlined in the life insurance policy and the regulations of the Insurance Regulatory and Development Authority of India (IRDAI), the governing body for insurance in India. Therefore, it's advisable to refer to the policy documents and consult with the insurance company for precise details regarding proximate cause in a life