MARINE INSURANCE ORDINANCE

MARINE INSURANCE ORDINANCE

LAWS OF HONG KONG

MARINE INSURANCE ORDINANCE

CHAPTER 329





CHAPTER 329.

MARINE INSURANCE ORDINANCE.

ARRANGEMENT OF SECTIONS.

Section. Page.

1. Short title ... ... ... ... ... ... ... ... ... ... ... ... ... ... 5

MARINE INSURANCE.
2. Marine insurance defined ................... ... ... ... ... ... ... 5

3. Marine adventure and maritime perils defined ... ... ... ... ... 5

INSURABLE INTEREST.

4. Avoidance of wagering or gaming contracts ... ... ... ... ... 6

5. Insurable interest defined ................. ... ... ... ... ... ... ... 6
6. When interest must attach .................. ... ... ... ... ... ... 6

7. Defensible or contingent interest .......... ... ... ... ... ... ... 7

8. Partial interest ........................... ... ... ... ... ... ... 7
9. Re-insurance ............................... ... ... ... ... ... . 7

10..........Bottomry ........................... ... ... ... ... ... ... ... ... 7

11...................Master's and seamen's wages ... ... ... ... ... ... ... ... ... 7

12.............Advance freight ................. ... ... ... ... ... ... ... ... ... 7

13...............Charges of insurance .......... ... ... ... ... ... ... ... ... ... 7
14...............Quantum of interest ........... ... ... ... ... ... ... ... ... ... 7

15.................Assignment of interest ...... ... ... ... .. ... ... ... ...
7

INSURABLE VALUE.

16...................Measure of insurable value ... ... ... ... ... ... ... ... ... 8

DISCLOSURE AND REPRESENTTIONS.

17..................Insurance is uberrimae fidei ... ... ... ... ... ... ... ... ... 8

18................Disclosure by assured ...... ... ... ... ... ... ... ... ... ... 8

19..........................Disclosure by agent effecting insurance ... ... ... ... ... ... 9
20..........................Representations pending negotiation of contract ... ... ... ... ... 9
21..........................When contract is deemed to be concluded ... ... ... ... ... ... 10

THE POLICY.

22.......................Contract must be embodied in policy ... ... ... ... ... ... ... 10

23...................What policy must specify ... ... ... ... ... ... ... ... ... 10

24..............Signature of insurer .......... ... ... ... ... ... ... ... ... ... 10

25...................Voyages and time policies ... ... ... ... ... ... ... ... ... 10
26...................Designature of subject-matter ... ... ... ... ... ... ... ... ... 10





Section...................................... Page.

27. Valued policy ............................. ... ... ... ... ... 11

28. Unvalued policy . ...................... ... ... ...11
29. Floating policy by ship or ships ....... ... ... ... ... ... ...11
30. Construction of terms in policy ........ ... ... ... ... ... ...11

31. Premium to be arranged ................. ... ... ... ... ... ...11

DOUBLE INSURANCE.

32...............Double insurance .............. ... ... ... ... ... ... ... ... 12

WARRANTIES, ETC.

33...............Nature of warranty ............ ... ... ... ... ... ... ... ... ... 12

34......................When breach of warranty excused ... ... ... .... ... ... ... ... 12

35...............Express warranties ............ ... ... ... ... ... ... ... ... ... 13
36...............Warranty of neutrality ........ ... ... ... ... ... ... ... ... ... 13

37........................No implied warranty of nationality ... ... ... ... ... ... ... 13

38.................Warranty of good safety ..... ... ... ... ... ... ... ... ... ... 13

39........................Warranty of seaworthiness of ship ... ... ... ... ... ... ... 13

40.............................No implied warranty that goods are seaworthy ... ... ... ... ... 14

41...............Warranty of legality .......... ... ... ... ... ... ... ... ... ... 14

THE VOYAGE.

42.............................Implied condition as to commencement of risk ... ... ... ... ... 14

43......................Alteration of port of departure ... ... ... ... ... ... ... ... 14
44......................Sailing for different destination ... ... ... ... ... ... ... ... 14

45...............Change of voyage .............. ... ... ... ... ... ... ... ... 14

46..........Deviation .......................... ... ... ... ... ... ... ... ... 15

47....................Several ports of discharge ... ... ... ... ... ... ... ... ... 15

48.............Delay in voyage ................. ... ... ... ... ... ... ... ... ... 15

49......................Excuses for deviation or delay ... ... ... ... ... ... ... ... 15

ASSIGNMENT OF POLICY.

50. When and how policy is assignable ... ... ... ... ... ... ... ... 16
51. Assured who has no interest cannot assign ... ... ... ... ... ... ... 16

THE PREMIUM.

52. When premium payable ... ... ... ... ... ... ... ... ... ... ... 16
53. Policy effected through broker ... ... ... ... ... .... ... ... ... 16
54. Effect of receipt on policy ... .. ... ... ... ... ... ... ... ... 17

Loss AND ABANDONMENT.

55. Included and excluded losses ... ... ... ... ... ... ... ... ... ... 17
56. Partial and total loss ... ... ... ... ... ... ... ... ... ... ... ... 17











Section. Page

57. Actual total loss ... ... ... ... ... ... ... ... ... ... ... ... ... 18
58. Missing ship ... ... ... ... ... ... ... ... ... ... ... ... ... 18
59. Effect of transhipment, etc . ... ... ... ... ... ... ... ... ... ... 18
60. Constructive total loss defined ... ... ... ... ... ... ... ... ... 18
61. Effect of constructive total loss ... . ... ... ... ... ... ... ... .... 19
62. Notice of abandonment ... ... ... ... ... ... ... ... ... ... ... 19
63. Effect of abandonment ... ... .. ... ... ... . ... ... ... ... ... 19

PARTIAL LOSSES (INCLUDING SALVAGE AND GENERAL
AVERAGE
AND PARTICULAR CHARGES).

64................Particular average loss .... ... ... ... ... ... ... ... ... 20

65............Salvage charges ................ ... ... ... ... ... ... .... ... ... 20
66............General average loss ........... ... ... ... ... ... ... ... ... ... 20

MEASURE OF INDEMNITY.

67.......................Extent of liability of insurer for loss ... ... ... ... ... ... ... 21

68.........Total loss ........................ ... ... ... ... ... ... ... ... 21

69..............Partial loss of ship ......... ... ... ... ... ... ... ... ... ... 21
70..............Partial loss of freight ... ... ... ... ... ... ... ... ... ... ... 22

71..........................Partial loss of goods, merchandise, etc. ... ... ... ... ... 22

72..................Apportionment of valuation ... ... ... ... ... ... ... ... ... 23

73..............................General average contributions and salvage charges ... ... ... ... 23

74..................Liabilities to third parties ... ... ... ... ... ... ... ... ... 23

75............................General provisions as to measure of indemnity ... ... ... ... ... 23

76..................Particular average warranties ... ... ... ... ... ... ... ... ... 24

77..............Successive losses ............ ... ... ... ... ... ... ... ... 24

78..................Suing and labouring clause ... ... ... ... ... ... ... ... ... 24

RIGHTS OF INSURER ON
PAYMENT.

79..............Right of subrogation ......... ... ... ... ... ... ... ... ... ... 25

80................Right of contribution ...... ... ... ... ... ... ... ... .. 25
81................Effect of under insurance ... ... ... ... ... ... ... ... ... ...
25

RETURN OF PREMIUM.

82................Enforcement of return ...... ... ... ... ... ... ... ... ... ... 25

83..............Return by. agreement ......... ... ... ... ... ... ... ... ... ... 25

84.......................Return for failure of consideration ... ... ... ... ... ... ... 26

MUTUAL INSURANCE.

85.................................Modification of Ordinance in case of mutual insurance ... ... ... 27





Section. Page.

SUPPLEMENTAL
.

86. Ratification by assured ... ... ... ... ... ... ... ... ... ... ... 27
87. Implied obligations varied by agreement or usage ... ... ... ... ... 27
88. Reasonable time, etc. a question of fact ... ... ... ... ... ... ... 27
89. Slip as evidence ... ... ... ... ... ... ... ... ... ... ... ... ... 27
90. Interpretation of terms ... ... ... ... ... ... ... ... ... ... ... 27
91. Saving ... ... ... ... ... ... ... ... ... ... ... . ... ... ... ... 28
92. Prohibition of gambling on loss by maritime perils ... ... ... ... ... 28

Schedule. Form of Policy and Rules for construction of policy ... ... ... ... 29





CHAPTER 329.

MARINE INSURANCE.

To codify the law relating to marine insurance.

[9th June, 1961.]

1. This Ordinance may be cited as the Marine* Insurance
Ordinance.

MARINE
INSURANCE.

2. (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.

(2) 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.

(3) 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 Ordinance, in so far
as applicable. shall apply thereto; but, except as by this section
provided, nothing in this Ordinance shall alter or affect any rule of law
applicable to any contract of insurance other than a contract of marine
insurance as by this Ordinance defined.

3. (1) Subject to the provisions of this Ordinance. 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 movables are exposed to maritime
peril. Such property is in this Ordinance 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.

(3) For the purposes of this Ordinance, '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.

INSURABLE
INTEREST.

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 Ordinance, 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.

5. (1) Subject to the provisions of this Ordinance, 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.

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.





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.

8. A partial interest of any nature is insurable.

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.

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

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

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.

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

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.

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.





INSURABLE VALUE.

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

(a)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:

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;

(b)in insurance on freight, whether paid in advance or other.wise.
the insurable value is the gross amount of the freight at the risk
of the assured, plus the charges of insurance;

(c)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;

(d)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.

DISCLOSURE AND
REPRESENTATIONS.

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.

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.

19. Subject to the provisions of section 18 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 comes to his knowledge too late to
communicate it to the agent.

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.

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.

THE POLICY.

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

23. A marine policy must specify the name of the assured, or of
some person who effects the insurance on his behalf.

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.

25. 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.

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.





21. (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 Ordinance, 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. ,

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.

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
endorsement 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 subjectmatter of that
declaration.

30. (1) A policy may be in the form in the Schedule.

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

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,

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 Ordinance, 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 Ordinance;

(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 Ordinance, he is deemed to hold
such sum in trust for the insurers, according to their right of
contribution among themselves.

WARRANTIES, ETC.

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.

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 comphance 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.

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.

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.

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

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.

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.

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

(2) In a voyage policy on goods or other movables 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 movables to. the destination contemplated by the policy.

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.

THE VOYAGE.

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.

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.

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.

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.

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.

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.

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.

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

(a) where authorized 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

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.

ASSIGNMENT OF POLICY.

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 endorsement thereon or in
other customary manner.

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.

THE PREMIUM.

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.

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.

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.

Loss AND ABANDONMENT.

55. (1) Subject to the provisions of this Ordinance, 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.

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.

57. (1) Where the subject-matter insured is destroyed, or so
damaged as to cease to he 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.

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.

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 affreigtment to justify the
master in landing and re-shipping the goods or other movables, or in
transhipping them, and sending them on to their destination, the liability
of the insurer continues notwithstanding the landing or transhipment.

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-

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

(b)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.

In estimating the cost of repairs, no deduction is to be
made in respect of general average contributions to those
repairs payable by other interests, but account is to be taken
of the expense of future salvage operations and of any future
general average contributions to which the ship would be
liable if repaired; or





(c)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.

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

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.

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 foss, 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.

PARTIAL LOSSES (INCLUDING SALVAGE AND GENERAL
AVERAGE
AND PARTICULAR CHARGES).

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.

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.

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.

MEASURE OF
INDEMNITY.

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 fun 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.

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

(a)if the policy be a valued policy, the measure of indemnity is
the sum fixed by the policy;

(b)if the policy be an unvalued policy. the measure of indemnity
is the insurable value of the subject-matter insured.

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

(a)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;

(b)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 cast of repairing the whole damage, computed as above;

(c)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.

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.

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

(a)where part of the goods, merchandise or other movables
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;

(b)where part of the goods, merchandise, or other movables
insured by an unvalued policy is totally lost, the measure of
indemnity is the insurable value of the part lost, as-certained
as in case of total loss;

(c)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
rthe 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;

(d)'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.





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 Ordinance.

(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.

73. (1) Subject to any express provision in the policy. where the
assured has paid, or is liable for, any general average conribution, 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.

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.

75. (1) Where there has been a loss in respect of any subject-matter
not expressly provided for in the foregoing provisions of this
Ordinance. 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 Ordinance 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.





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 subjectmatter
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.

77. (1) Unless the policy otherwise provides, and subject to the
provisions of this Ordinance, 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.

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 Ordinance, 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
minimizing a loss.

RIGHTS OF INSURER ON PAYMENT.

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 subjectmatter so paid for, and he
is thereby subrogated to all the rights and remedies of the assured in
and in respect of that subjectmatter 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 Ordinance, by such payment for
the loss.

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.

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.

RETURN OF PREMIUM.

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

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

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

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.





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.





MUTUAL
INSURANCE.

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 Ordinance 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 Ordinance, 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 Ordinance apply to a mutual insurance.

SUPPLEMENTAL
.

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.

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 he 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 Ordinance which may be lawfully modified by
agreement.

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

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

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

'action' includes suit, 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 movables, as
well as freight payable by a third party, but does not include
passage money;





'movables' means any movable tangible property, other than the ship,
and includes money, valuable securities, and other documents; and

'policy' means a marine policy.

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

92. (1) If-

(a)any person effects a contract of marine insurance without
having any bona fide interest direct or indirect, either in
the safe arrival of the ship in relation to which the contract is
made or in the safety or preservation of the subject-matter
insured, or a bona fide expectation of acquiring such an
interest; or

(b)any person in the employment of the owner of a ship, not
being a part owner of the ship, effects a contract of marine
insurance in relation to the ship, and the contract 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,

the contract shall be deemed to be a contract by way of gambling on loss
by maritime perils, and the person effecting it shall be guilty of an
offence, and shall be liable, on conviction. to imprisonment for a term not
exceeding six months or to a fine not exceeding two thousand dollars, or
to both such fine and imprisonment and in either case to forfeit to the
Crown any money he may receive under the contract. (Amended, 13
of 1966, Schedule)

(2) Any broker or other person through whom, and any insurer with
whom. any such contract is effected shall be guilty of an offence and
liable on conviction to the like penalties if he acted knowing that the
contract was by way of gambling on loss by maritime perils within the
meaning of this section.

(3) Proceedings under this section shall not be instituted without
the consent of the Attorney General.

(4) Proceedings shall not be instituted under this section against a
person (other than a person in the employment of the owner of the ship
in relation to which the contract was made) alleged to have effected a
contract by way of gambling on loss by maritime perils until an
opportunity has been afforded him of showing that the contract was not
such a contract as aforesaid, and any information given by that person
for that purpose shall not be admissible in evidence against him in any
prosecution under this section.





(5) If proceedings under this section are taken against any person
(other than a person in the employment of the owner of the ship in
relation to which the contract was made) for effecting such a contract,
and the contract was 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. the contract shall be
deemed to be a contract by way of gambling on loss by maritime perils
unless the contrary is proved.

(6) For the purpose of giving jurisdiction under this section, every
offence shall be deemed to have been committed either in the place in
which the same actually was committed or in any place in which the
offender may be.

(7) For the purposes of this section the expression 'owner'
includes charterer.

(8) Nothing in this section shall affect the operation of section 4.

SCHEDULE. [s. 30.]

FORM OF POLICY.

BE IT KNOWN THAT as well in

own name as for and in the name and names of all and every other person or
persons to whom the same doth, may, or shall appertain, in part or in all doth
make assurance and cause and them, and every of them, to be insured lost or not
lost, at and from

Upon any kind of goods and merchandises, and also upon the body, tackle, apparel,
ordnance, munition, artillery, boat, and other furniture, of and in the good ship or
vessel called the whereof is master under God, for this present voyage, or
whosoever else shall go for master in the said ship, or by whatsoever other name
or names the said ship, or the master thereof, is or shall be named or called;
beginning the adventure upon the said goods and merchandises from the loading
thereof aboard the said ship, upon the said ship, etc.

and so shall continue and endure, during ' her abode there, upon the said
ship, etc. And further, until the said ship, with all her ordnance, tackle,
apparel, etc., and goods and merchandises whatsoever shall be arrived at

upon the said ship, etc., until she bath moored at anchor twenty-four hours in good
safety; and upon the goods and merchandises, until the same be there discharged
and safely landed. And it shall be lawful for the said ship, etc., in this voyage, to
proceed and sail to and touch and stay at any ports or places whatsoever

without prejudice to this insurance. The said ship, etc., goods and merchandises,
etc., for so much as concerns the assured by agreement between the assured and
assurers in this policy, are and shall be valued at

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, etc., 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, etc., 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 stranded-sugar, 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.

RULES FOR CONSTRUCTION OF POLICY.

The following are the rules referred to by this Ordinance 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 lose', 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. (1) 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.

(2) 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. '

(3) 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.
(4) 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 movables are insured 'from the loading thereof', the
risk does not attach until such goods or movable 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 movables 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 authorize 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, etc., 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 he 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 movables, 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.
Originally 21 of 1961. 13 of 1966. Short title. Marine insurance defined. 6 Edw. 7 c. 41, ss. 1, 2. Marine adventure and maritime perils defined. 6 Edw. 7 c. 41, s. 3. Avoidance of wagering or gaming contracts. 6 Edw. 7 c. 41, s. 4. Insurable interest defined. 6 Edw. 7 c, 41, s. 5. When interest must attach. 6 Edw, 7 c. 41, s. 6. Defeasible or contingent interest. 6 Edw. 7 c. 41, s. 7. Partial interest. 6 Edw. 7 c. 41, s. 8. Re-insurance. 6 Edw. 7 c. 41, s. 9. Bottomry. 6 Edw. 7 c. 41, s. 10. Master's and seamen's wages. 6 Edw. 7 c. 41, s. 11. Advance freight. 6 Edw. 7 c. 41, s. 11. Advance freight. 6 Edw. 7 c. 41, s. 12. Charges of insurance. 6 Edw. 7 c. 41, s. 13. Quantum of interest. 6 Edw. 7 c. 41, s. 14. Assignment of interest. 6 Edw. 7 c. 41, s. 15. Measure of insurable value. 6 Edw. 7 c. 41, s. 16. Insurance is uberrimoe fidei. 6 Edw. 7 c. 41, s. 17. Disclosure by assured. 6 Edw. 7 c. 41, s. 18. Disclosure by agent effecting insurance. 6 Edw. 7 c. 41, s. 19. Representations pending negotiation of contract. 6 Edw. 7 c. 41, s. 20. When contract is deemed to be concluded. 6 Edw. 7 c. 41, s. 21. Contract must be embodied in policy. 6 Edw, 7 c. 41, s. 22. What policy must specify. 6 Edw. 7 c. 41, s. 23. Signature of insurer. 6 Edw. 7 c. 41, s. 24. Voyages and time policies. 6 Edw. 7 c. 41, s. 25. Designation of subject-matter. 6 Edw. 7 c. 41, s. 26. Valued policy. 6 Edw. 7 c. 41, s. 27. Unvalued policy. 6 Edw. 7 c. 41, s. 28. Floating policy by ship or ships. 6 Edw. 7 c. 41, s. 29. Construction of terms in policy. 6 Edw. 7 c. 41, s. 30. Schedule. Premium to be arranged. 6 Edw. 7 c. 41, s. 31. Double insurance. 6 Edw. 7 c. 41, s. 32. Nature of warranty. 6 Edw. 7 c. 41, s. 33. When breach of warranty excused. 6 Edw. 7 c. 41, s. 34. Express warranties. 6 Edw. 7 c. 41, s. 35. Warranty of neutrality. 6 Edw. 7 c. 41, s. 36. No implied warranty of nationality. 6 Ed. 7 c. 41, s. 37. Warranty of good safety. 6 Edw. 7 c. 41, s. 38. Warranty of seaworthiness of ship. 6 Edw. 7 c. 41, s. 39. No implied warranty that goods are seaworthy. 6 Edw. 7 c. 41, s. 40. Warranty of legality. 6 Edw. 7 c. 41, s. 41. Implied condition as to commencement of risk. 6 Edw. 7 c. 41, s. 42. Alteration of port of departure. 6 Edw. 7 c. 41, s. 43. Sailing for port of departure. 6 Edw. 7 c. 41. s. 44. Change of voyage. 6 Edw. 7 c. 41, s. 45. Deviation. 6 Edw. 7 c. 41, s. 46. Several ports of discharge. 6 Edw. 7 c. 41, s. 47. Delay in voyage. 6 Edw. 7 c. 41, s. 48. Excuses for deviation for delay. 6 Edw. 7 c. 41, s. 49. When and how policy is assignable. 6 Edw. 7 c. 41, s. 50. Assured who has no interest cannot assign. 6 Edw. 7 c. 41, s. 51. When premium payable. 6 Edw. 7 c. 41, s. 52. Policy effected through broker. 6 Edw. 7 c. 41, s. 53. Effect of receipt on policy. 6 Edw. 7 c. 41, s. 54. Included and excluded losses. 6 Edw. 7 c. 41, s. 55. Partial and total loss. 6 Edw. 7 c. 41, s. 56. Actual total loss. 6 Edw. 7 c. 41, s. 57. Missing ship. 6 Edw. 7 c. 41, s. 58. Effect of transhipment, etc. 6 Edw. 7 c. 41, s. 59. Constructive total loss defined. 6 Edw. 7 c. 41, s. 60. Effect of constructive total loss. 6 Edw. 7 c. 41, s. 61. Notice of abandonment. 6 Edw. 7 c. 41, s. 62. Effect of abandonment. 6 Edw. 7 c. 41, s. 63. Particular average loss. 6 Edw. 7 c. 41, s. 64. Salvage charges. 6 Edw. 7 c. 41, s. 65. General average loss. 6 Edw. 7 c. 41, s. 66. Extent of liability of insurer for loss. 6 Edw. 7 c. 41, s. 67. Total loss. 6 Edw. 7 c. 41, s. 68. Partial loss of ship. 6 Edw. 7 c. 41, s. 69. Partial loss of freight. 6 Edw. 7 c. 41, s. 70. Partial loss of goods, merchandise, etc. 6 Edw. 7 c. 41, s. 71. Apportionment of valuation. 6 Edw. 7 c. 41, s. 72. General average contributions and salvage charges. 6 Edw. 7 c. 41, s. 73. Liabilities to third parties. 6 Edw. 7 c. 41, s. 74. General provisions as to measure of indemnity. 6 Edw. 7 c. 41, s. 75. Particular average warranties. 6 Edw. 7 c. 41, s. 76. Successive losses. 6 Edw. 7 c. 41, s. 77. Suing and labouring clause. 6 Edw. 7 c. 41, s. 78. Right of subrogation. 6 Edw. 7 c. 41, s. 79. Right of contribution. 6 Edw, 7 c. 41. S. 80. Effect of under insurance. 6 Edw. 7 c. 41, s. 81. Enforcement of return. 6 Edw. 7 c. 41, s. 82. Return by agreement. 6 Edw. 7 c. 41, s. 83. Return for failure of consideration. 6 Edw. 7 c. 41, s. 84. Modification of Ordinance in case of mutual insurance. 6 Edw. 7 c. 41, s. 85. Ratification by assured. 6 Edw. 7 c. 41, s. 86. Implied obligations varied by agreement or usage. 6 Edw. 7 c. 41, s. 87. Reasonable time, etc. a question of fact. 6 Edw. 7 c. 41, s. 88. Slip as evidence. 6 Edw. 7 c. 41, s. 89. Interpretation of terms. 6 Edw. 7 c. 41, s. 90. Saving. 6 Edw. 7 c. 41, s. 91. Prohibition of gambling on loss by maritime perils. 9 Edw. 7 c. 12, s. 1. 6 Edw. 7 c. 41, First Schedule. Lloyd's S.G. Policy. (Sue and labour clause). (Waiver clause). (Memorandum). Lost or not lost. From. At and from (Ship). (Freight). From the loading thereof. Safely landed. Touch and stay. Perils of the seas. Pirates. Thieves. Restraint of princes. Barratry. All other perils Average unless general. Stranded. Ship. Freight. Goods.

Originally 21 of 1961. 13 of 1966. Short title. Marine insurance defined. 6 Edw. 7 c. 41, ss. 1, 2. Marine adventure and maritime perils defined. 6 Edw. 7 c. 41, s. 3. Avoidance of wagering or gaming contracts. 6 Edw. 7 c. 41, s. 4. Insurable interest defined. 6 Edw. 7 c, 41, s. 5. When interest must attach. 6 Edw, 7 c. 41, s. 6. Defeasible or contingent interest. 6 Edw. 7 c. 41, s. 7. Partial interest. 6 Edw. 7 c. 41, s. 8. Re-insurance. 6 Edw. 7 c. 41, s. 9. Bottomry. 6 Edw. 7 c. 41, s. 10. Master's and seamen's wages. 6 Edw. 7 c. 41, s. 11. Advance freight. 6 Edw. 7 c. 41, s. 11. Advance freight. 6 Edw. 7 c. 41, s. 12. Charges of insurance. 6 Edw. 7 c. 41, s. 13. Quantum of interest. 6 Edw. 7 c. 41, s. 14. Assignment of interest. 6 Edw. 7 c. 41, s. 15. Measure of insurable value. 6 Edw. 7 c. 41, s. 16. Insurance is uberrimoe fidei. 6 Edw. 7 c. 41, s. 17. Disclosure by assured. 6 Edw. 7 c. 41, s. 18. Disclosure by agent effecting insurance. 6 Edw. 7 c. 41, s. 19. Representations pending negotiation of contract. 6 Edw. 7 c. 41, s. 20. When contract is deemed to be concluded. 6 Edw. 7 c. 41, s. 21. Contract must be embodied in policy. 6 Edw, 7 c. 41, s. 22. What policy must specify. 6 Edw. 7 c. 41, s. 23. Signature of insurer. 6 Edw. 7 c. 41, s. 24. Voyages and time policies. 6 Edw. 7 c. 41, s. 25. Designation of subject-matter. 6 Edw. 7 c. 41, s. 26. Valued policy. 6 Edw. 7 c. 41, s. 27. Unvalued policy. 6 Edw. 7 c. 41, s. 28. Floating policy by ship or ships. 6 Edw. 7 c. 41, s. 29. Construction of terms in policy. 6 Edw. 7 c. 41, s. 30. Schedule. Premium to be arranged. 6 Edw. 7 c. 41, s. 31. Double insurance. 6 Edw. 7 c. 41, s. 32. Nature of warranty. 6 Edw. 7 c. 41, s. 33. When breach of warranty excused. 6 Edw. 7 c. 41, s. 34. Express warranties. 6 Edw. 7 c. 41, s. 35. Warranty of neutrality. 6 Edw. 7 c. 41, s. 36. No implied warranty of nationality. 6 Ed. 7 c. 41, s. 37. Warranty of good safety. 6 Edw. 7 c. 41, s. 38. Warranty of seaworthiness of ship. 6 Edw. 7 c. 41, s. 39. No implied warranty that goods are seaworthy. 6 Edw. 7 c. 41, s. 40. Warranty of legality. 6 Edw. 7 c. 41, s. 41. Implied condition as to commencement of risk. 6 Edw. 7 c. 41, s. 42. Alteration of port of departure. 6 Edw. 7 c. 41, s. 43. Sailing for port of departure. 6 Edw. 7 c. 41. s. 44. Change of voyage. 6 Edw. 7 c. 41, s. 45. Deviation. 6 Edw. 7 c. 41, s. 46. Several ports of discharge. 6 Edw. 7 c. 41, s. 47. Delay in voyage. 6 Edw. 7 c. 41, s. 48. Excuses for deviation for delay. 6 Edw. 7 c. 41, s. 49. When and how policy is assignable. 6 Edw. 7 c. 41, s. 50. Assured who has no interest cannot assign. 6 Edw. 7 c. 41, s. 51. When premium payable. 6 Edw. 7 c. 41, s. 52. Policy effected through broker. 6 Edw. 7 c. 41, s. 53. Effect of receipt on policy. 6 Edw. 7 c. 41, s. 54. Included and excluded losses. 6 Edw. 7 c. 41, s. 55. Partial and total loss. 6 Edw. 7 c. 41, s. 56. Actual total loss. 6 Edw. 7 c. 41, s. 57. Missing ship. 6 Edw. 7 c. 41, s. 58. Effect of transhipment, etc. 6 Edw. 7 c. 41, s. 59. Constructive total loss defined. 6 Edw. 7 c. 41, s. 60. Effect of constructive total loss. 6 Edw. 7 c. 41, s. 61. Notice of abandonment. 6 Edw. 7 c. 41, s. 62. Effect of abandonment. 6 Edw. 7 c. 41, s. 63. Particular average loss. 6 Edw. 7 c. 41, s. 64. Salvage charges. 6 Edw. 7 c. 41, s. 65. General average loss. 6 Edw. 7 c. 41, s. 66. Extent of liability of insurer for loss. 6 Edw. 7 c. 41, s. 67. Total loss. 6 Edw. 7 c. 41, s. 68. Partial loss of ship. 6 Edw. 7 c. 41, s. 69. Partial loss of freight. 6 Edw. 7 c. 41, s. 70. Partial loss of goods, merchandise, etc. 6 Edw. 7 c. 41, s. 71. Apportionment of valuation. 6 Edw. 7 c. 41, s. 72. General average contributions and salvage charges. 6 Edw. 7 c. 41, s. 73. Liabilities to third parties. 6 Edw. 7 c. 41, s. 74. General provisions as to measure of indemnity. 6 Edw. 7 c. 41, s. 75. Particular average warranties. 6 Edw. 7 c. 41, s. 76. Successive losses. 6 Edw. 7 c. 41, s. 77. Suing and labouring clause. 6 Edw. 7 c. 41, s. 78. Right of subrogation. 6 Edw. 7 c. 41, s. 79. Right of contribution. 6 Edw, 7 c. 41. S. 80. Effect of under insurance. 6 Edw. 7 c. 41, s. 81. Enforcement of return. 6 Edw. 7 c. 41, s. 82. Return by agreement. 6 Edw. 7 c. 41, s. 83. Return for failure of consideration. 6 Edw. 7 c. 41, s. 84. Modification of Ordinance in case of mutual insurance. 6 Edw. 7 c. 41, s. 85. Ratification by assured. 6 Edw. 7 c. 41, s. 86. Implied obligations varied by agreement or usage. 6 Edw. 7 c. 41, s. 87. Reasonable time, etc. a question of fact. 6 Edw. 7 c. 41, s. 88. Slip as evidence. 6 Edw. 7 c. 41, s. 89. Interpretation of terms. 6 Edw. 7 c. 41, s. 90. Saving. 6 Edw. 7 c. 41, s. 91. Prohibition of gambling on loss by maritime perils. 9 Edw. 7 c. 12, s. 1. 6 Edw. 7 c. 41, First Schedule. Lloyd's S.G. Policy. (Sue and labour clause). (Waiver clause). (Memorandum). Lost or not lost. From. At and from (Ship). (Freight). From the loading thereof. Safely landed. Touch and stay. Perils of the seas. Pirates. Thieves. Restraint of princes. Barratry. All other perils Average unless general. Stranded. Ship. Freight. Goods.

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