[Home] [Databases] [World Law] [Multidatabase Search] [Help] [Feedback]
	Statutes of Northern Ireland
You are here: BAILII >> Databases >> Statutes of Northern Ireland >> URL: http://www.bailii.org/nie/legis/num_act/mia1906170.txt

[New search] [Help]

MARINE INSURANCE ACT 1906

MARINE INSURANCE ACT 1906 - LONG TITLE

An Act to codify the Law relating to Marine Insurance.{1}
[21st December 1906]
MARINE INSURANCEMarine insurance defined.

MARINE INSURANCE ACT 1906 - SECT 1

1. A contract of marine insurance is a contract whereby the insurer
undertakes to indemnify the assured, in manner and to the extent
thereby agreed, against marine losses, that is to say, the losses
incident to marine adventure.

MARINE INSURANCE ACT 1906 - SECT 2
Mixed sea and land risks.

2.(1) A contract of marine insurance may, by its express terms, or
by usage of trade, be extended so as to protect the assured
against losses on inland waters or on any land risk which may be
incidental to any sea voyage.

(2) Where a ship in course of building, or the launch of a ship,
or any adventure analogous to a marine adventure, is covered by a
policy in the form of a marine policy, the provisions of this Act,
in so far as applicable, shall apply thereto; but, except as by
this section provided, nothing in this Act shall alter or affect
any rule of law applicable to any contract of insurance other than
a contract of marine insurance as by this Act defined.

MARINE INSURANCE ACT 1906 - SECT 3
Marine adventure and maritime perils defined.

3.(1) Subject to the provisions of this Act, every lawful marine
adventure may be the subject of a contract of marine insurance.

(2) In particular there is a marine adventure where

(a)Any ship goods or other moveables are exposed to maritime perils.
Such property is in this Act referred to as "insurable property";

(b)The earning or acquisition of any freight, passage money,
commission, profit, or other pecuniary benefit, or the security for
any advances, loan, or disbursements, is endangered by the exposure
of insurable property to maritime perils;

(c)Any liability to a third party may be incurred by the owner of,
or other person interested in or responsible for, insurable property,
by reason of maritime perils.

"Maritime perils" means the perils consequent on, or incidental to,
the navigation of the sea, that is to say, perils of the seas,
fire, war perils, pirates, rovers, thieves, captures, seizures,
restraints, and detainments of princes and peoples, jettisons,
barratry, and any other perils, either of the like kind or which
may be designated by the policy.

Avoidance of wagering or gaming contracts.

MARINE INSURANCE ACT 1906 - SECT 4

4.(1) Every contract of marine insurance by way of gaming or
wagering is void.

(2) A contract of marine insurance is deemed to be a gaming or
wagering contract

(a)Where the assured has not an insurable interest as defined by
this Act, and the contract is entered into with no expectation of
acquiring such an interest; or

(b)Where the policy is made "interest or no interest," or "without
further proof of interest than the policy itself," or "without
benefit of salvage to the insurer," or subject to any other like
term:

Provided that, where there is no possibility of salvage, a policy
may be effected without benefit of salvage to the insurer.

MARINE INSURANCE ACT 1906 - SECT 5
Insurable interest defined.

5.(1) Subject to the provisions of this Act, every person has an
insurable interest who is interested in a marine adventure.

(2) In particular a person is interested in a marine adventure
where he stands in any legal or equitable relation to the adventure
or to any insurable property at risk therein, in consequence of
which he may benefit by the safety or due arrival of insurable
property, or may be prejudiced by its loss, or by damage thereto,
or by the detention thereof, or may incur liability in respect
thereof.

MARINE INSURANCE ACT 1906 - SECT 6
When interest must attach.

6.(1) The assured must be interested in the subject-matter insured
at the time of the loss though he need not be interested when the
insurance is effected:

Provided that where the subject-matter is insured "lost or not
lost," the assured may recover although he may not have acquired
his interest until after the loss, unless at the time of effecting
the contract of insurance the assured was aware of the loss, and
the insurer was not.

(2) Where the assured has no interest at the time of the loss, he
cannot acquire interest by any act or election after he is aware
of the loss.

MARINE INSURANCE ACT 1906 - SECT 7
Defeasible or contingent interest.

7.(1) A defeasible interest is insurable, as also is a contingent
interest.

(2) In particular, where the buyer of goods has insured them, he
has an insurable interest, notwithstanding that he might, at his
election, have rejected the goods, or have treated them as at the
seller's risk, by reason of the latter's delay in making delivery
or otherwise.

MARINE INSURANCE ACT 1906 - SECT 8
Partial interest.

8. A partial interest of any nature is insurable.

MARINE INSURANCE ACT 1906 - SECT 9
Re-insurance.

9.(1) The insurer under a contract of marine insurance has an
insurable interest in his risk, and may re-insure in respect of it.

(2) Unless the policy otherwise provides, the original assured has
no right or interest in respect of such re-insurance.

MARINE INSURANCE ACT 1906 - SECT 10
Bottomry.

10. The lender of money on bottomry or respondentia has an
insurable interest in respect of the loan.

MARINE INSURANCE ACT 1906 - SECT 11
Master's and seamen's wages.

11. The master or any member of the crew of a ship has an
insurable interest in respect of his wages.

MARINE INSURANCE ACT 1906 - SECT 12
Advance freight.

12. In the case of advance freight, the person advancing the
freight has an insurable interest, in so far as such freight is
not repayable in case of loss.

MARINE INSURANCE ACT 1906 - SECT 13
Charges of insurance.

13. The assured has an insurable interest in the charges of any
insurance which he may effect.

MARINE INSURANCE ACT 1906 - SECT 14
Quantum of interest.

14.(1) Where the subject-matter insured is mortgaged, the mortgagor
has an insurable interest in the full value thereof, and the
mortgagee has an insurable interest in respect of any sum due or
to become due under the mortgage.

(2) A mortgagee, consignee, or other person having an interest in
the subject-matter insured may insure on behalf and for the benefit
of other persons interested as well as for his own benefit.

(3) The owner of insurable property has an insurable interest in
respect of the full value thereof, notwithstanding that some third
person may have agreed, or be liable, to indemnify him in case of
loss.

MARINE INSURANCE ACT 1906 - SECT 15
Assignment of interest.

15. Where the assured assigns or otherwise parts with his interest
in the subject-matter insured, he does not thereby transfer to the
assignee his rights under the contract of insurance, unless there be
an express or implied agreement with the assignee to that effect.

But the provisions of this section do not affect a transmission of
interest by operation of law.

Measure of insurable value.

MARINE INSURANCE ACT 1906 - SECT 16

16. Subject to any express provision or valuation in the policy,
the insurable value of the subject-matter insured must be ascertained
as follows:

(1)In insurance on ship, the insurable value is the value, at the
commencement of the risk, of the ship, including her outfit,
provisions and stores for the officers and crew, money advanced for
seamen's wages, and other disbursements (if any) incurred to make
the ship fit for the voyage or adventure contemplated by the
policy, plus the charges of insurance upon the whole:(2)In insurance
on freight, whether paid in advance or otherwise, the insurable
value is the gross amount of the freight at the risk of the
assured, plus the charges of insurance:

(3)In insurance on goods or merchandise, the insurable value is the
prime cost of the property insured, plus the expenses of and
incidental to shipping and the charges of insurance upon the whole:

(4)In insurance on any other subject-matter, the insurable value is
the amount at the risk of the assured when the policy attaches,
plus the charges of insurance.

Insurance is uberrimae fidei.

MARINE INSURANCE ACT 1906 - SECT 17
The insurable value, in the case of a steamship, includes also the
machinery, boilers, and coals and engine stores if owned by the
assured, and, in the case of a ship engaged in a special trade,
the ordinary fittings requisite for that trade:

17. A contract of marine insurance is a contract based upon the
utmost good faith, and, if the utmost good faith be not observed
by either party, the contract may be avoided by the other party.

MARINE INSURANCE ACT 1906 - SECT 18
Disclosure by assured.

18.(1) Subject to the provisions of this section, the assured must
disclose to the insurer, before the contract is concluded, every
material circumstance which is known to the assured, and the assured
is deemed to know every circumstance which, in the ordinary course
of business, ought to be known by him. If the assured fails to
make such disclosure, the insurer may avoid the contract.

(2) Every circumstance is material which would influence the judgment
of a prudent insurer in fixing the premium, or determining whether
he will take the risk.

(3) In the absence of inquiry the following circumstances need not
be disclosed, namely:

(a)Any circumstance which diminishes the risk;

(b)Any circumstance which is known or presumed to be known to the
insurer. The insurer is presumed to know matters of common notoriety
or knowledge, and matters which an insurer in the ordinary course
of his business, as such, ought to know;

(c)Any circumstance as to which information is waived by the
insurer;

(d)Any circumstance which it is superfluous to disclose by reason of
any express or implied warranty.

(4) Whether any particular circumstance, which is not disclosed, be
material or not is, in each case, a question of fact.

(5) The term "circumstance" includes any communication made to, or
information received by, the assured.

MARINE INSURANCE ACT 1906 - SECT 19
Disclosure by agent effecting insurance.

19. Subject to the provisions of the preceding section as to
circumstances which need not be disclosed, where an insurance is
effected for the assured by an agent, the agent must disclose to
the insurer

(a)Every material circumstance which is known to himself, and an
agent to insure is deemed to know every circumstance which in the
ordinary course of business ought to be known by, or to have been
communicated to, him; and

(b)Every material circumstance which the assured is bound to
disclose, unless it come to his knowledge too late to communicate
it to the agent.

MARINE INSURANCE ACT 1906 - SECT 20
Representations pending negotiation of contract.

20.(1) Every material representation made by the assured or his
agent to the insurer during the negotiations for the contract, and
before the contract is concluded, must be true. If it be untrue
the insurer may avoid the contract.

(2) A representation is material which would influence the judgment
of a prudent insurer in fixing the premium, or determining whether
he will take the risk.

(3) A representation may be either a representation as to a matter
of fact, or as to a matter of expectation or belief.

(4) A representation as to a matter of fact is true, if it be
substantially correct, that is to say, if the difference between
what is represented and what is actually correct would not be
considered material by a prudent insurer.

(5) A representation as to a matter of expectation or belief is
true if it be made in good faith.

(6) A representation may be withdrawn or corrected before the
contract is concluded.

(7) Whether a particular representation be material or not is, in
each case, a question of fact.

MARINE INSURANCE ACT 1906 - SECT 21
When contract is deemed to be concluded.

21. A contract of marine insurance is deemed to be concluded when
the proposal of the assured is accepted by the insurer, whether the
policy be then issued or not; and, for the purpose of showing when
the proposal was accepted, reference may be made to the slip or
covering note or other customary memorandum of the contract,....

Contract must be embodied in policy.

MARINE INSURANCE ACT 1906 - SECT 22

22. Subject to the provisions of any statute, a contract of marine
insurance is inadmissible in evidence unless it is embodied in a
marine policy in accordance with this Act. The policy may be
executed and issued either at the time when the contract is
concluded, or afterwards.

MARINE INSURANCE ACT 1906 - SECT 23
What policy must specify.

23. A marine policy must specify

(1)The name of the assured, or of some person who effects the
insurance on his behalf:

Paras.(2)(5) rep. by 1959 c.9 (NI) s.17(2) sch.3 Pt.II

MARINE INSURANCE ACT 1906 - SECT 24
Signature of insurer.

24.(1) A marine policy must be signed by or on behalf of the
insurer, provided that in the case of a corporation the corporate
seal may be sufficient, but nothing in this section shall be
construed as requiring the subscription of a corporation to be under
seal.

(2) Where a policy is subscribed by or on behalf of two or more
insurers, each subscription, unless the contrary be expressed,
constitutes a distinct contract with the assured.

MARINE INSURANCE ACT 1906 - SECT 25
Voyage and time policies.

25.(1) Where the contract is to insure the subject-matter "at and
from," or from one place to another or others, the policy is
called a "voyage policy," and where the contract is to insure the
subject-matter for a definite period of time the policy is called a
"time policy." A contract for both voyage and time may be included
in the same policy.

Subs.(2) rep. by 1959 c.9 (NI) s.17(2) sch.3 Pt.II

MARINE INSURANCE ACT 1906 - SECT 26
Designation of subject-matter.

26.(1) The subject-matter insured must be designated in a marine
policy with reasonable certainty.

(2) The nature and extent of the interest of the assured in the
subject-matter insured need not be specified in the policy.

(3) Where the policy designates the subject-matter insured in general
terms, it shall be construed to apply to the interest intended by
the assured to be covered.

(4) In the application of this section regard shall be had to any
usage regulating the designation of the subject-matter insured.

MARINE INSURANCE ACT 1906 - SECT 27
Valued policy.

27.(1) A policy may be either valued or unvalued.

(2) A valued policy is a policy which specifies the agreed value
of the subject-matter insured.

(3) Subject to the provisions of this Act, and in the absence of
fraud, the value fixed by the policy is, as between the insurer
and assured, conclusive of the insurable value of the subject
intended to be insured, whether the loss be total or partial.

(4) Unless the policy otherwise provides, the value fixed by the
policy is not conclusive for the purpose of determining whether
there has been a constructive total loss.

MARINE INSURANCE ACT 1906 - SECT 28
Unvalued policy.

28. An unvalued policy is a policy which does not specify the
value of the subject-matter insured, but, subject to the limit of
the sum insured, leaves the insurable value to be subsequently
ascertained, in the manner hereinbefore specified.

MARINE INSURANCE ACT 1906 - SECT 29
Floating policy by ship or ships.

29.(1) A floating policy is a policy which describes the insurance
in general terms, and leaves the name of the ship or ships and
other particulars to be defined by subsequent declaration.

(2) The subsequent declaration or declarations may be made by
indorsement on the policy, or in other customary manner.

(3) Unless the policy otherwise provides, the declarations must be
made in the order of dispatch or shipment. They must, in the case
of goods, comprise all consignments within the terms of the policy,
and the value of the goods or other property must be honestly
stated, but an omission or erroneous declaration may be rectified
even after loss or arrival, provided the omission or declaration was
made in good faith.

(4) Unless the policy otherwise provides, where a declaration of
value is not made until after notice of loss or arrival, the
policy must be treated as an unvalued policy as regards the
subject-matter of that declaration.

MARINE INSURANCE ACT 1906 - SECT 30
Construction of terms in policy.

30.(1) A policy may be in the form in the First Schedule to this
Act.

(2) Subject to the provisions of this Act, and unless the context
of the policy otherwise requires, the terms and expressions mentioned
in the First Schedule to this Act shall be construed as having the
scope and meaning in that schedule assigned to them.

MARINE INSURANCE ACT 1906 - SECT 31
Premium to be arranged.

31.(1) Where an insurance is effected at a premium to be arranged,
and no arrangement is made, a reasonable premium is payable.

(2) Where an insurance is effected on the terms that an additional
premium is to be arranged in a given event, and that event happens
but no arrangement is made, then a reasonable additional premium is
payable.

Double insurance.

MARINE INSURANCE ACT 1906 - SECT 32

32.(1) Where two or more policies are effected by or on behalf of
the assured on the same adventure and interest or any part thereof,
and the sums insured exceed the indemnity allowed by this Act, the
assured is said to be over-insured by double insurance.

(2) Where the assured is over-insured by double insurance

(a)The assured, unless the policy otherwise provides, may claim
payment from the insurers in such order as he may think fit,
provided that he is not entitled to receive any sum in excess of
the indemnity allowed by this Act;

(b)Where the policy under which the assured claims is a valued
policy, the assured must give credit as against the valuation for
any sum received by him under any other policy without regard to
the actual value of the subject-matter insured;

(c)Where the policy under which the assured claims is an unvalued
policy he must give credit, as against the full insurable value,
for any sum received by him under any other policy;

(d)Where the assured receives any sum in excess of the indemnity
allowed by this Act, he is deemed to hold such sum in trust for
the insurers, according to their right of contribution among
themselves.

Nature of warranty.

MARINE INSURANCE ACT 1906 - SECT 33

33.(1) A warranty, in the following sections relating to warranties,
means a promissory warranty, that is to say, a warranty by which
the assured undertakes that some particular thing shall or shall not
be done, or that some condition shall be fulfilled, or whereby he
affirms or negatives the existence of a particular state of facts.

(2) A warranty may be express or implied.

(3) A warranty, as above defined, is a condition which must be
exactly complied with, whether it be material to the risk or not.
If it be not so complied with, then, subject to any express
provision in the policy, the insurer is discharged from liability as
from the date of the breach of warranty, but without prejudice to
any liability incurred by him before that date.

MARINE INSURANCE ACT 1906 - SECT 34
When breach of warranty excused.

34.(1) Non-compliance with a warranty is excused when, by reason of
a change of circumstances, the warranty ceases to be applicable to
the circumstances of the contract, or when compliance with the
warranty is rendered unlawful by any subsequent law.

(2) Where a warranty is broken, the assured cannot avail himself of
the defence that the breach has been remedied, and the warranty
complied with, before loss.

(3) A breach of warranty may be waived by the insurer.

MARINE INSURANCE ACT 1906 - SECT 35
Express warranties.

35.(1) An express warranty may be in any form of words from which
the intention to warrant is to be inferred.

(2) An express warranty must be included in, or written upon, the
policy, or must be contained in some document incorporated by
reference into the policy.

(3) An express warranty does not exclude an implied warranty, unless
it be inconsistent therewith.

MARINE INSURANCE ACT 1906 - SECT 36
Warranty of neutrality.

36.(1) Where insurable property, whether ship or goods, is expressly
warranted neutral, there is an implied condition that the property
shall have a neutral character at the commencement of the risk, and
that, so far as the assured can control the matter, its neutral
character shall be preserved during the risk.

(2) Where a ship is expressly warranted "neutral" there is also an
implied condition that, so far as the assured can control the
matter, she shall be properly documented, that is to say, that she
shall carry the necessary papers to establish her neutrality, and
that she shall not falsify or suppress her papers, or use simulated
papers. If any loss occurs through breach of this condition, the
insurer may avoid the contract.

MARINE INSURANCE ACT 1906 - SECT 37
No implied warranty of nationality.

37. There is no implied warranty as to the nationality of a ship,
or that her nationality shall not be changed during the risk.

MARINE INSURANCE ACT 1906 - SECT 38
Warranty of good safety.

38. Where the subject-matter insured is warranted "well" or "in good
safety" on a particular day, it is sufficient if it be safe at
any time during that day.

MARINE INSURANCE ACT 1906 - SECT 39
Warranty of seaworthiness of ship.

39.(1) In a voyage policy there is an implied warranty that at the
commencement of the voyage the ship shall be seaworthy for the
purpose of the particular adventure insured.

(2) Where the policy attaches while the ship is in port, there is
also an implied warranty that she shall, at the commencement of the
risk, be reasonably fit to encounter the ordinary perils of the
port.

(3) Where the policy relates to a voyage which is performed in
different stages, during which the ship requires different kinds of
or further preparation or equipment, there is an implied warranty
that at the commencement of each stage the ship is seaworthy in
respect of such preparation or equipment for the purposes of that
stage.

(4) A ship is deemed to be seaworthy when she is reasonably fit
in all respects to encounter the ordinary perils of the seas of
the adventure insured.

(5) In a time policy there is no implied warranty that the ship
shall be seaworthy at any stage of the adventure, but where, with
the privity of the assured, the ship is sent to sea in an
unseaworthy state, the insurer is not liable for any loss
attributable to unseaworthiness.

MARINE INSURANCE ACT 1906 - SECT 40
No implied warranty that goods are seaworthy.

40.(1) In a policy on goods or other moveables there is no implied
warranty that the goods or moveables are seaworthy.

(2) In a voyage policy on goods or other moveables there is an
implied warranty that at the commencement of the voyage the ship is
not only seaworthy as a ship, but also that she is reasonably fit
to carry the goods or other moveables to the destination
contemplated by the policy.

MARINE INSURANCE ACT 1906 - SECT 41
Warranty of legalty.

41. There is an implied warranty that the adventure insured is a
lawful one, and that, so far as the assured can control the
matter, the adventure shall be carried out in a lawful manner.

Implied condition as to commencement of risk.

MARINE INSURANCE ACT 1906 - SECT 42

42.(1) Where the subject-matter is insured by a voyage policy "at
and from" or "from" a particular place, it is not necessary that
the ship should be at that place when the contract is concluded,
but there is an implied condition that the adventure shall be
commenced within a reasonable time, and that if the adventure be
not so commenced the insurer may avoid the contract.

(2) The implied condition may be negatived by showing that the
delay was caused by circumstances known to the insurer before the
contract was concluded, or by showing that he waived the condition.

MARINE INSURANCE ACT 1906 - SECT 43
Alteration of port of departure.

43. Where the place of departure is specified by the policy, and
the ship instead of sailing from that place sails from any other
place, the risk does not attach.

MARINE INSURANCE ACT 1906 - SECT 44
Sailing for different destination.

44. Where the destination is specified in the policy, and the ship,
instead of sailing for that destination, sails for any other
destination, the risk does not attach.

MARINE INSURANCE ACT 1906 - SECT 45
Change of voyage.

45.(1) Where, after the commencement of the risk, the destination of
the ship is voluntarily changed from the destination contemplated by
the policy, there is said to be a change of voyage.

(2) Unless the policy otherwise provides, where there is a change
of voyage, the insurer is discharged from liability as from the
time of change, that is to say, as from the time when the
determination to change it is manifested; and it is immaterial that
the ship may not in fact have left the course of voyage
contemplated by the policy when the loss occurs.

MARINE INSURANCE ACT 1906 - SECT 46
Deviation.

46.(1) Where a ship, without lawful excuse, deviates from the voyage
contemplated by the policy, the insurer is discharged from liability
as from the time of deviation, and it is immaterial that the ship
may have regained her route before any loss occurs.

(2) There is a deviation from the voyage contemplated by the policy

(a)Where the course of the voyage is specifically designated by the
policy, and that course is departed from; or

(b)Where the course of the voyage is not specifically designated by
the policy, but the usual and customary course is departed from.

(3) The intention to deviate is immaterial; there must be a
deviation in fact to discharge the insurer from his liability under
the contract.

MARINE INSURANCE ACT 1906 - SECT 47
Several ports of discharge.

47.(1) Where several ports of discharge are specified by the policy,
the ship may proceed to all or any of them, but, in the absence
of any usage or sufficient cause to the contrary, she must proceed
to them, or such of them as she goes to, in the order designated
by the policy. If she does not there is a deviation.

(2) Where the policy is to "ports of discharge," within a given
area, which are not named, the ship must, in the absence of any
usage or sufficient cause to the contrary, proceed to them, or such
of them as she goes to, in their geographical order. If she does
not there is a deviation.

MARINE INSURANCE ACT 1906 - SECT 48
Delay in voyage.

48. In the case of a voyage policy, the adventure insured must be
prosecuted throughout its course with reasonable dispatch, and, if
without lawful excuse it is not so prosecuted, the insurer is
discharged from liability as from the time when the delay became
unreasonable.

MARINE INSURANCE ACT 1906 - SECT 49
Excuses for deviation or delay.

49.(1) Deviation or delay in prosecuting the voyage contemplated by
the policy is excused

(a)Where authorised by any special term in the policy; or

(b)Where caused by circumstances beyond the control of the master
and his employer; or

(c)Where reasonably necessary in order to comply with an express or
implied warranty; or

(d)Where reasonably necessary for the safety of the ship or
subject-matter insured; or

(e)For the purpose of saving human life, or aiding a ship in
distress where human life may be in danger; or

(f)Where reasonably necessary for the purpose of obtaining medical or
surgical aid for any person on board the ship; or

(g)Where caused by the barratrous conduct of the master or crew, if
barratry be one of the perils insured against.

(2) When the cause excusing the deviation or delay ceases to
operate, the ship must resume her course, and prosecute her voyage,
with reasonable dispatch.

When and how policy is assignable.

MARINE INSURANCE ACT 1906 - SECT 50

50.(1) A marine policy is assignable unless it contains terms
expressly prohibiting assignment. It may be assigned either before or
after loss.

(2) Where a marine policy has been assigned so as to pass the
beneficial interest in such policy, the assignee of the policy is
entitled to sue thereon in his own name; and the defendant is
entitled to make any defence arising out of the contract which he
would have been entitled to make if the action had been brought in
the name of the person by or on behalf of whom the policy was
effected.

(3) A marine policy may be assigned by indorsement thereon or in
other customary manner.

MARINE INSURANCE ACT 1906 - SECT 51
Assured who has no interest cannot assign.

51. Where the assured has parted with or lost his interest in the
subject-matter insured, and has not, before or at the time of so
doing, expressly or impliedly agreed to assign the policy, any
subsequent assignment of the policy is inoperative:

Provided that nothing in this section affects the assignment of a
policy after loss.

When premium payable.

MARINE INSURANCE ACT 1906 - SECT 52

52. Unless otherwise agreed, the duty of the assured or his agent
to pay the premium, and the duty of the insurer to issue the
policy to the assured or his agent, are concurrent conditions, and
the insurer is not bound to issue the policy until payment or
tender of the premium.

MARINE INSURANCE ACT 1906 - SECT 53
Policy effected through broker.

53.(1) Unless otherwise agreed, where a marine policy is effected on
behalf of the assured by a broker, the broker is directly
responsible to the insurer for the premium, and the insurer is
directly responsible to the assured for the amount which may be
payable in respect of losses, or in respect of returnable premium.

(2) Unless otherwise agreed, the broker has, as against the assured,
a lien upon the policy for the amount of the premium and his
charges in respect of effecting the policy; and, where he has dealt
with the person who employs him as a principal, he has also a
lien on the policy in respect of any balance on any insurance
account which may be due to him from such person, unless when the
debt was incurred he had reason to believe that such person was
only an agent.

MARINE INSURANCE ACT 1906 - SECT 54
Effect of receipt on policy.

54. Where a marine policy effected on behalf of the assured by a
broker acknowledges the receipt of the premium, such acknowledgment
is, in the absence of fraud, conclusive as between the insurer and
the assured, but not as between the insurer and broker.

Included and excluded losses.

MARINE INSURANCE ACT 1906 - SECT 55

55.(1) Subject to the provisions of this Act, and unless the policy
otherwise provides, the insurer is liable for any loss proximately
caused by a peril insured against, but, subject as aforesaid, he is
not liable for any loss which is not proximately caused by a peril
insured against.

(2) In particular

(a)The insurer is not liable for any loss attributable to the
wilful misconduct of the assured, but, unless the policy otherwise
provides, he is liable for any loss proximately caused by a peril
insured against, even though the loss would not have happened but
for the misconduct or negligence of the master or crew;

(b)Unless the policy otherwise provides, the insurer on ship or
goods is not liable for any loss proximately caused by delay,
although the delay be caused by a peril insured against;

(c)Unless the policy otherwise provides, the insurer is not liable
for ordinary wear and tear, ordinary leakage and breakage, inherent
vice or nature of the subject-matter insured, or for any loss
proximately caused by rats or vermin, or for any injury to
machinery not proximately caused by maritime perils.

MARINE INSURANCE ACT 1906 - SECT 56
Partial and total loss.

56.(1) A loss may be either total or partial. Any loss other than
a total loss, as hereinafter defined, is a partial loss.

(2) A total loss may be either an actual total loss, or a
constructive total loss.

(3) Unless a different intention appears from the terms of the
policy, an insurance against total loss includes a constructive, as
well as an actual, total loss.

(4) Where the assured brings an action for a total loss and the
evidence proves only a partial loss, he may, unless the policy
otherwise provides, recover for a partial loss.

(5) Where goods reach their destination in specie, but by reason of
obliteration of marks, or otherwise, they are incapable of
identification, the loss, if any, is partial, and not total.

MARINE INSURANCE ACT 1906 - SECT 57
Actual total loss.

57.(1) Where the subject-matter insured is destroyed, or so damaged
as to cease to be a thing of the kind insured, or where the
assured is irretrievably deprived thereof, there is an actual total
loss.

(2) In the case of an actual total loss no notice of abandonment
need be given.

MARINE INSURANCE ACT 1906 - SECT 58
Missing ship.

58. Where the ship concerned in the adventure is missing, and after
the lapse of a reasonable time no news of her has been received,
an actual total loss may be presumed.

MARINE INSURANCE ACT 1906 - SECT 59
Effect of transhipment, &c.

59. Where, by a peril insured against, the voyage is interrupted at
an intermediate port or place, under such circumstances as, apart
from any special stipulation in the contract of affreightment, to
justify the master in landing and re-shipping the goods or other
moveables, or in transhipping them, and sending them on to their
destination, the liability of the insurer continues, notwithstanding
the landing or transhipment.

MARINE INSURANCE ACT 1906 - SECT 60
Constructive total loss defined.

60.(1) Subject to any express provision in the policy, there is a
constructive total loss where the subject-matter insured is reasonably
abandoned on account of its actual total loss appearing to be
unavoidable, or because it could not be preserved from actual total
loss without an expenditure which would exceed its value when the
expenditure had been incurred.

(2) In particular, there is a constructive total loss

(i)Where the assured is deprived of the possession of his ship or
goods by a peril insured against, and (a) it is unlikely that he
can recover the ship or goods, as the case may be, or (b) the
cost of recovering the ship or goods, as the case may be, would
exceed their value when recovered; or

(ii)In the case of damage to a ship, where she is so damaged by
a peril insured against that the cost of repairing the damage would
exceed the value of the ship when repaired.(iii)In the case of
damage to goods, where the cost of repairing the damage and
forwarding the goods to their destination would exceed their value
on arrival.

MARINE INSURANCE ACT 1906 - SECT 61
Effect of constructive total loss.

61. Where there is a constructive total loss the assured may either
treat the loss as a partial loss, or abandon the subject-matter
insured to the insurer and treat the loss as if it were an actual
total loss.

MARINE INSURANCE ACT 1906 - SECT 62
Notice of abandonment.

62.(1) Subject to the provisions of this section, where the assured
elects to abandon the subject-matter insured to the insurer, he must
give notice of abandonment. If he fails to do so the loss can
only be treated as a partial loss.

(2) Notice of abandonment may be given in writing, or by word of
mouth, or partly in writing and partly by word of mouth, and may
be given in any terms which indicate the intention of the assured
to abandon his insured interest in the subject-matter insured
unconditionally to the insurer.

(3) Notice of abandonment must be given with reasonable diligence
after the receipt of reliable information of the loss, but where
the information is of a doubtful character the assured is entitled
to a reasonable time to make inquiry.

(4) Where notice of abandonment is properly given, the rights of
the assured are not prejudiced by the fact that the insurer refuses
to accept the abandonment.

(5) The acceptance of an abandonment may be either express or
implied from the conduct of the insurer. The mere silence of the
insurer after notice is not an acceptance.

(6) Where notice of abandonment is accepted the abandonment is
irrevocable. The acceptance of the notice conclusively admits
liability for the loss and the sufficiency of the notice.

(7) Notice of abandonment is unnecessary where, at the time when
the assured receives information of the loss, there would be no
possibility of benefit to the insurer if notice were given to him.

(8) Notice of abandonment may be waived by the insurer.

(9) Where an insurer has re-insured his risk no notice of
abandonment need be given by him.

MARINE INSURANCE ACT 1906 - SECT 63
Effect of abandonment.

63.(1) Where there is a valid abandonment the insurer is entitled
to take over the interest of the assured in whatever may remain of
the subject-matter insured, and all proprietary rights incidental
thereto.

(2) Upon the abandonment of a ship, the insurer thereof is entitled
to any freight in course of being earned, and which is earned by
her subsequent to the casualty causing the loss, less the expenses
of earning it incurred after the casualty; and, where the ship is
carrying the owner's goods, the insurer is entitled to a reasonable
remuneration for the carriage of them subsequent to the casualty
causing the loss.

Particular average loss.

MARINE INSURANCE ACT 1906 - SECT 64

64.(1) A particular average loss is a partial loss of the
subject-matter insured, caused by a peril insured against, and which
is not a general average loss.

(2) Expenses incurred by or on behalf of the assured for the
safety or preservation of the subject-matter insured, other than
general average and salvage charges, are called particular charges.
Particular charges are not included in particular average.

MARINE INSURANCE ACT 1906 - SECT 65
Salvage charges.

65.(1) Subject to any express provision in the policy, salvage
charges incurred in preventing a loss by perils insured against may
be recovered as a loss by those perils.

(2) "Salvage charges" means the charges recoverable under maritime
law by a salvor independently of contract. They do not include the
expenses of services in the nature of salvage rendered by the
assured or his agents, or any person employed for hire by them,
for the purpose of averting a peril insured against. Such expenses,
where properly incurred, may be recovered as particular charges or
as a general average loss, according to the circumstances under
which they were incurred.

MARINE INSURANCE ACT 1906 - SECT 66
General average loss.

66.(1) A general average loss is a loss caused by or directly
consequential on a general average act. It includes a general
average expenditure as well as a general average sacrifice.

(2) There is a general average act where any extraordinary sacrifice
or expenditure is voluntarily and reasonably made or incurred in
time of peril for the purpose of preserving the property imperilled
in the common adventure.

(3) Where there is a general average loss, the party on whom it
falls is entitled, subject to the conditions imposed by maritime
law, to a rateable contribution from the other parties interested,
and such contribution is called a general average contribution.

(4) Subject to any express provision in the policy, where the
assured has incurred a general average expenditure, he may recover
from the insurer in respect of the proportion of the loss which
falls upon him; and, in the case of a general average sacrifice,
he may recover from the insurer in respect of the whole loss
without having enforced his right of contribution from the other
parties liable to contribute.

(5) Subject to any express provision in the policy, where the
assured has paid, or is liable to pay, a general average
contribution in respect of the subject insured, he may recover
therefor from the insurer.

(6) In the absence of express stipulation, the insurer is not
liable for any general average loss or contribution where the loss
was not incurred for the purpose of avoiding, or in connexion with
the avoidance of, a peril insured against.

(7) Where ship, freight, and cargo, or any two of those interests,
are owned by the same assured, the liability of the insurer in
respect of general average losses or contributions is to be
determined as if those subjects were owned by different persons.

Extent of liability of insurer for loss.

MARINE INSURANCE ACT 1906 - SECT 67

67.(1) The sum which the assured can recover in respect of a loss
on a policy by which he is insured, in the case of an unvalued
policy to the full extent of the insurable value, or, in the case
of a valued policy to the full extent of the value fixed by the
policy, is called the measure of indemnity.

(2) Where there is a loss recoverable under the policy, the
insurer, or each insurer if there be more than one, is liable for
such proportion of the measure of indemnity as the amount of his
subscription bears to the value fixed by the policy in the case of
a valued policy, or to the insurable value in the case of an
unvalued policy.

MARINE INSURANCE ACT 1906 - SECT 68
Total loss.

68. Subject to the provisions of this Act and to any express
provision in the policy, where there is a total loss of the
subject-matter insured,

(1)If the policy be a valued policy, the measure of indemnity is
the sum fixed by the policy:

(2)If the policy be an unvalued policy, the measure of indemnity is
the insurable value of the subject-matter insured.

MARINE INSURANCE ACT 1906 - SECT 69
Partial loss of ship.

69. Where a ship is damaged, but is not totally lost, the measure
of indemnity, subject to any express provision in the policy is as
follows:

(1)Where the ship has been repaired, the assured is entitled to the
reasonable cost of the repairs, less the customary deductions, but
not exceeding the sum insured in respect of any one casualty:

(2)Where the ship has been only partially repaired, the assured is
entitled to the reasonable cost of such repairs, computed as above,
and also to be indemnified for the reasonable depreciation, if any,
arising from the unrepaired damage, provided that the aggregate
amount shall not exceed the cost of repairing the whole damage,
computed above:

(3)Where the ship has not been repaired, and has not been sold in
her damaged state during the risk, the assured is entitled to be
indemnified for the reasonable depreciation arising from the
unrepaired damage, but not exceeding the reasonable cost of repairing
such damage, computed as above.

MARINE INSURANCE ACT 1906 - SECT 70
Partial loss of freight.

70. Subject to any express provision in the policy, where there is
a partial loss of freight, the measure of indemnity is such
proportion of the sum fixed by the policy in the case of a valued
policy, or of the insurable value in the case of an unvalued
policy, as the proportion of freight lost by the assured bears to
the whole freight at the risk of the assured under the policy.

MARINE INSURANCE ACT 1906 - SECT 71
Partial loss of goods, merchandise, &c.

71. Where there is a partial loss of goods, merchandise, or other
moveables, the measure of indemnity, subject to any express provision
in the policy, is as follows:

(1)Where part of the goods, merchandise or other moveables insured
by a valued policy is totally lost, the measure of indemnity is
such proportion of the sum fixed by the policy as the insurable
value of the part lost bears to the insurable value of the whole,
ascertained as in the case of an unvalued policy:

(2)Where part of the goods, merchandise, or other moveables insured
by an unvalued policy is totally lost, the measure of indemnity is
the insurable value of the part lost, ascertained as in case of
total loss:

(3)Where the whole or any part of the goods or merchandise insured
has been delivered damaged at its destination, the measure of
indemnity is such proportion of the sum fixed by the policy in the
case of a valued policy, or of the insurable value in the case of
an unvalued policy, as the difference between the gross sound and
damaged values at the place of arrival bears to the gross sound
value:

(4)"Gross value" means the wholesale price or, if there be no such
price, the estimated value, with, in either case, freight, landing
charges, and duty paid beforehand; provided that, in the case of
goods or merchandise customarily sold in bond, the bonded price is
deemed to be the gross value. "Gross proceeds" means the actual
price obtained at a sale where all charges on sale are paid by
the sellers.

MARINE INSURANCE ACT 1906 - SECT 72
Apportionment of valuation.

72.(1) Where different species of property are insured under a
single valuation, the valuation must be apportioned over the
different species in proportion to their respective insurable values,
as in the case of an unvalued policy. The insured value of any
part of a species is such proportion of the total insured value of
the same as the insurable value of the part bears to the insurable
value of the whole, ascertained in both cases as provided by this
Act.

(2) Where a valuation has to be apportioned, and particulars of the
prime cost of each separate species, quality, or description of
goods cannot be ascertained, the division of the valuation may be
made over the net arrived sound values of the different species,
qualities, or descriptions of goods.

MARINE INSURANCE ACT 1906 - SECT 73
General average contributions and salvage charges.

73.(1) Subject to any express provision in the policy, where the
assured has paid, or is liable for, any general average
contribution, the measure of indemnity is the full amount of such
contribution, if the subject-matter liable to contribution is insured
for its full contributory value; but, if such subject-matter be not
insured for its full contributory value, or if only part of it be
insured, the indemnity payable by the insurer must be reduced in
proportion to the under insurance, and where there has been a
particular average loss which constitutes a deduction from the
contributory value, and for which the insurer is liable, that amount
must be deducted from the insured value in order to ascertain what
the insurer is liable to contribute.

(2) Where the insurer is liable for salvage charges the extent of
his liability must be determined on the like principle.

MARINE INSURANCE ACT 1906 - SECT 74
Liabilities to third parties.

74. Where the assured has effected an insurance in express terms
against any liability to a third party, the measure of indemnity,
subject to any express provision in the policy, is the amount paid
or payable by him to such third party in respect of such
liability.

MARINE INSURANCE ACT 1906 - SECT 75
General provisions as to measure of indemnity.

75.(1) Where there has been a loss in respect of any subject
matter not expressly provided for in the foregoing provisions of
this Act, the measure of indemnity shall be ascertained, as nearly
as may be, in accordance with those provisions, in so far as
applicable to the particular case.

(2) Nothing in the provisions of this Act relating to the measure
of indemnity shall affect the rules relating to double insurance, or
prohibit the insurer from disproving interest wholly or in part, or
from showing that at the time of the loss the whole or any part
of the subject-matter insured was not at risk under the policy.

MARINE INSURANCE ACT 1906 - SECT 76
Particular average warranties.

76.(1) Where the subject-matter insured is warranted free from
particular average, the assured cannot recover for a loss of part,
other than a loss incurred by a general average sacrifice, unless
the contract contained in the policy be apportionable; but, if the
contract be apportionable, the assured may recover for a total loss
of any apportionable part.

(2) Where the subject-matter insured is warranted free from
particular average, either wholly or under a certain percentage, the
insurer is nevertheless liable for salvage charges, and for
particular charges and other expenses properly incurred pursuant to
the provisions of the suing and labouring clause in order to avert
a loss insured against.

(3) Unless the policy otherwise provides, where the subject-matter
insured is warranted free from particular average under a specified
percentage, a general average loss cannot be added to a particular
average loss to make up the specified percentage.

(4) For the purpose of ascertaining whether the specified percentage
has been reached, regard shall be had only to the actual loss
suffered by the subject-matter insured. Particular charges and the
expenses of and incidental to ascertaining and proving the loss must
be excluded.

MARINE INSURANCE ACT 1906 - SECT 77
Successive losses.

77.(1) Unless the policy otherwise provides, and subject to the
provisions of this Act, the insurer is liable for successive losses,
even though the total amount of such losses may exceed the sum
insured.

(2) Where, under the same policy, a partial loss, which has not
been repaired or otherwise made good, is followed by a total loss,
the assured can only recover in respect of the total loss:

Provided that nothing in this section shall affect the liability of
the insurer under the suing and labouring clause.

MARINE INSURANCE ACT 1906 - SECT 78
Suing and labouring clause.

78.(1) Where the policy contains a suing and labouring clause, the
engagement thereby entered into is deemed to be supplementary to the
contract of insurance, and the assured may recover from the insurer
any expenses properly incurred pursuant to the clause, notwithstanding
that the insurer may have paid for a total loss, or that the
subject-matter may have been warranted free from particular average,
either wholly or under a certain percentage.

(2) General average losses and contributions and salvage charges, as
defined by this Act, are not recoverable under the suing and
labouring clause.

(3) Expenses incurred for the purpose of averting or diminishing any
loss not covered by the policy are not recoverable under the suing
and labouring clause.

(4) It is the duty of the assured and his agents, in all cases,
to take such measures as may be reasonable for the purpose of
averting or minimising a loss.

Right of subrogation.

MARINE INSURANCE ACT 1906 - SECT 79

79.(1) Where the insurer pays for a total loss, either of the
whole, or in the case of goods of any apportionable part, of the
subject-matter insured, he thereupon becomes entitled to take over
the interest of the assured in whatever may remain of the
subject-matter so paid for, and he is thereby subrogated to all the
rights and remedies of the assured in and in respect of that
subject-matter as from the time of the casualty causing the loss.

(2) Subject to the foregoing provisions, where the insurer pays for
a partial loss, he acquires no title to the subject-matter insured,
or such part of it as may remain, but he is thereupon subrogated
to all rights and remedies of the assured in and in respect of
the subject-matter insured as from the time of the casualty causing
the loss, in so far as the assured has been indemnified, according
to this Act, by such payment for the loss.

MARINE INSURANCE ACT 1906 - SECT 80
Right of contribution.

80.(1) Where the assured is over-insured by double insurance, each
insurer is bound, as between himself and the other insurers, to
contribute rateably to the loss in proportion to the amount for
which he is liable under his contract.

(2) If any insurer pays more than his proportion of the loss, he
is entitled to maintain an action for contribution against the other
insurers, and is entitled to the like remedies as a surety who has
paid more than his proportion of the debt.

MARINE INSURANCE ACT 1906 - SECT 81
Effect of under insurance.

81. Where the assured is insured for an amount less than the
insurable value or, in the case of a valued policy, for an amount
less than the policy valuation, he is deemed to be his own insurer
in respect of the uninsured balance.

Enforcement of return.

MARINE INSURANCE ACT 1906 - SECT 82

82. Where the premium or a proportionate part thereof is, by this
Act, declared to be returnable,

(a)If already paid, it may be recoverable by the assured from the
insurer; and

(b)If unpaid, it may be retained by the assured or his agent.

MARINE INSURANCE ACT 1906 - SECT 83
Return by agreement.

83. Where the policy contains a stipulation for the return of the
premium, or a proportionate part thereof, on the happening of a
certain event, and that event happens, the premium, or, as the case
may be, the proportionate part thereof, is thereupon returnable to
the assured.

MARINE INSURANCE ACT 1906 - SECT 84
Return for failure of consideration.

84.(1) Where the consideration for the payment of the premium
totally fails, and there has been no fraud or illegality on the
part of the assured or his agents, the premium is thereupon
returnable to the assured.

(2) Where the consideration for the payment of the premium is
apportionable and there is a total failure of any apportionable part
of the consideration, a proportionate part of the premium is, under
the like conditions, thereupon returnable to the assured.

(3) In particular

(a)Where the policy is void, or is avoided by the insurer as from
the commencement of the risk, the premium is returnable, provided
that there has been no fraud or illegality on the part of the
assured; but if the risk is not apportionable, and has once
attached, the premium is not returnable:

(b)Where the subject-matter insured, or part thereof, has never been
imperilled, the premium, or, as the case may be, a proportionate
part thereof, is returnable:

Provided that where the subject-matter has been insured "lost or not
lost" and has arrived in safety at the time when the contract is
concluded, the premium is not returnable unless, at such time, the
insurer knew of the safe arrival.

(c)Where the assured has no insurable interest throughout the
currency of the risk, the premium is returnable, provided that this
rule does not apply to a policy effected by way of gaming or
wagering;

(d)Where the assured has a defeasible interest which is terminated
during the currency of the risk, the premium is not returnable;

(e)Where the assured has over-insured under an unvalued policy, a
proportionate part of the premium is returnable;

(f)Subject to the foregoing provisions, where the assured has
over-insured by double insurance, a proportionate part of the several
premiums is returnable:

Provided that, if the policies are effected at different times, and
any earlier policy has at any time borne the entire risk, or if a
claim has been paid on the policy in respect of the full sum
insured thereby, no premium is returnable in respect of that policy,
and when the double insurance is effected knowingly by the assured
no premium is returnable.

Modification of Act in case of mutual insurance.

MARINE INSURANCE ACT 1906 - SECT 85

85.(1) Where two or more persons mutually agree to insure each
other against marine losses there is said to be a mutual insurance.

(2) The provisions of this Act relating to the premium do not
apply to mutual insurance, but a guarantee, or such other
arrangement as may be agreed upon, may be substituted for the
premium.

(3) The provisions of this Act, in so far as they may be modified
by the agreement of the parties, may in the case of mutual
insurance be modified by the terms of the policies issued by the
association, or by the rules and regulations of the association.

(4) Subject to the exceptions mentioned in this section, the
provisions of this Act apply to a mutual insurance.

Ratification by assured.

MARINE INSURANCE ACT 1906 - SECT 86

86. Where a contract of marine insurance is in good faith effected
by one person on behalf of another, the person on whose behalf it
is effected may ratify the contract even after he is aware of a
loss.

MARINE INSURANCE ACT 1906 - SECT 87
Implied obligations varied by agreement or usage.

87.(1) Where any right, duty, or liability would arise under a
contract of marine insurance by implication of law, it may be
negatived or varied by express agreement, or by usage, if the usage
be such as to bind both parties to the contract.

(2) The provisions of this section extend to any right, duty, or
liability declared by this Act which may be lawfully modified by
agreement.

MARINE INSURANCE ACT 1906 - SECT 88
Reasonable time, &c. a question of fact.

88. Where by this Act any reference is made to reasonable time,
reasonable premium, or reasonable diligence, the question what is
reasonable is a question of fact.

MARINE INSURANCE ACT 1906 - SECT 89
Slip as evidence.

89. Where there is a duly stamped policy, reference may be made,
as heretofore, to the slip or covering note, in any legal
proceeding.

MARINE INSURANCE ACT 1906 - SECT 90
Interpretation of terms.

90. In this Act, unless the context or subject-matter otherwise
requires,

"Action" includes counter-claim and set off:

"Freight" includes the profit derivable by a shipowner from the
employment of his ship to carry his own goods or moveables, as
well as freight payable by a third party, but does not include
passage money:

"Moveables" means any moveable tangible property, other than the
ship, and includes money, valuable securities, and other documents:

"Policy" means a marine policy.

MARINE INSURANCE ACT 1906 - SECT 91
Savings.

91.(1) Nothing in this Act, or in any repeal effected thereby,
shall affect

(a)The provisions of the Stamp Act, 1891, or any enactment for the
time being in force relating to the revenue;

(b)The provisions of the Companies Act, 1862, or any enactment
amending or substituted for the same;

(c)The provisions of any statute not expressly repealed by this Act.

(2) The rules of the common law including the law merchant, save
in so far as they are inconsistent with the express provisions of
this Act, shall continue to apply to contracts of marine insurance.

Ss.92, 93 rep. by SLR 1927

MARINE INSURANCE ACT 1906 - SECT 94
Short title.

94. This Act may be cited as the Marine Insurance Act, 1906.

Lloyd's S.G. policy.

as well in

Touching the adventures and perils which we the assurers are
contented to bear and do take upon us in this voyage: they are of
the seas, men of war, fire, enemies, pirates, rovers, thieves,
jettisons, letters of mart and countermart, surprisals, takings at
sea, arrests, restraints, and detainments of all kings, princes, and
people, of what nation, condition, or quality soever, barratry of
the master and mariners, and of all other perils, losses, and
misfortunes, that have or shall come to the hurt, detriment, or
damage of the said goods and merchandises, and ship, &c., or any
part thereof. And in case of any loss or misfortune it shall be
lawful to the assured, their factors, servants and assigns, to sue,
labour, and travel for, in and about the defence, safeguards, and
recovery of the said goods and merchandises, and ship, &c., or any
part thereof, without prejudice to this insurance; to the charges
whereof we, the assurers, will contribute each one according to the
rate and quantity of his sum herein assured. And it is especially
declared and agreed that no acts of the insurer or insured in
recovering, saving, or preserving the property insured shall be
considered as a waiver, or acceptance of abandonment. And it is
agreed by us, the insurers, that this writing or policy of
assurance shall be of as much force and effect as the surest
writing or policy of assurance heretofore made in Lombard Street, or
in the Royal Exchange, or elsewhere in London. And so we, the
assurers, are contented, and do hereby promise and bind ourselves,
each one for his own part, our heirs, executors, and goods to the
assured, their executors, administrators, and assigns, for the true
performance of the premises, confessing ourselves paid the
consideration due unto us for this assurance by the assured, at and
after the rate of

IN WITNESS whereof we, the assurers, have subscribed our names and
sums assured in London.N.B.Corn, fish, salt, fruit, flour, and seed
are warranted free from average, unless general, or the ship be
strandedsugar, tobacco, hemp, flax, hides and skins are warranted
free from average, under five pounds per cent., and all other
goods, also the ship and freight, are warranted free from average,
under three pounds per cent. unless general, or the ship be
stranded.

The following are the rules referred to by this Act for the
construction of a policy in the above or other like form, where
the context does not otherwise require:1. Where the subject-matter is
insured "lost or not lost," and the loss has occurred before the
contract is concluded, the risk attaches unless, at such time the
assured was aware of the loss, and the insurer was not.2. Where
the subject-matter is insured "from" a particular place, the risk
does not attach until the ship starts on the voyage insured.3.(a)
Where a ship is insured "at and from" a particular place, and she
is at that place in good safety when the contract is concluded,
the risk attaches immediately.

(b) If she be not at that place when the contract is concluded,
the risk attaches as soon as she arrives there in good safety,
and, unless the policy otherwise provides, it is immaterial that she
is covered by another policy for a specified time after arrival.

(c) Where chartered freight is insured "at and from" a particular
place, and the ship is at that place in good safety, when the
contract is concluded the risk attaches immediately. If she be not
there when the contract is concluded, the risk attaches as soon as
she arrives there in good safety.

(d) Where freight, other than chartered freight, is payable without
special conditions and is insured "at and from" a particular place,
the risk attaches pro rata as the goods or merchandise are shipped;
provided that if there be cargo in readiness which belongs to the
shipowner, or which some other person has contracted with him to
ship, the risk attaches as soon as the ship is ready to receive
such cargo.4. Where goods or other moveables are insured "from the
loading thereof," the risk does not attach until such goods or
moveables are actually on board, and the insurer is not liable for
them while in transit from the shore to the ship.5. Where the risk
on goods or other moveables continues until they are "safely
landed," they must be landed in the customary manner and within a
reasonable time after arrival at the port of discharge, and if they
are not so landed the risk ceases.6. In the absence of any further
licence or usage, the liberty to touch and stay "at any port or
place whatsoever" does not authorise the ship to depart from the
course of her voyage from the port of departure to the port of
destination.7. The term "perils of the seas" refers only to
fortuitous accidents or casualties of the seas. It does not include
the ordinary action of the winds and waves.8. The term "pirates"
includes passengers who mutiny and rioters who attack the ship from
the shore.9. The term "thieves" does not cover clandestine theft or
a theft committed by any one of the ship's company, whether crew
or passengers.10. The term "arrests, &c., of kings, princes, and
people" refers to political or executive acts, and does not include
a loss caused by riot or by ordinary judicial process.11. The term
"barratry" includes every wrongful act wilfully committed by the
master or crew to the prejudice of the owner, or, as the case may
be, the charterer.12. The term "all other perils" includes only
perils similar in kind to the perils specifically mentioned in the
policy.13. The term "average unless general" means a partial loss of
the subject-matter insured other than a general average loss, and
does not include "particular charges."14. Where the ship has
stranded, the insurer is liable for the excepted losses, although
the loss is not attributable to the stranding, provided that when
the stranding takes place the risk has attached and, if the policy
be on goods, that the damaged goods are on board.15. The term
"ship" includes the hull, materials and outfit, stores and provisions
for the officers and crew, and, in the case of vessels engaged in
a special trade, the ordinary fittings requisite for the trade, and
also, in the case of a steamship, the machinery, boilers, and coals
and engine stores, if owned by the assured.16. The term "freight"
includes the profit derivable by a shipowner from the employment of
his ship to carry his own goods or moveables, as well as freight
payable by a third party, but does not include passage money.17.
The term "goods" means goods in the nature of merchandise, and does
not include personal effects or provisions and stores for use on
board.

In the absence of any usage to the contrary, deck cargo and living
animals must be insured specifically, and not under the general
denomination of goods.

Second Schedule rep. by SLR 1927