Marine Insurance Act 1907 (WA)
WESTERN AUSTRALIA.
ANNO SEPTIMO
EDWARD' SEPTIMI REGIS,
XXXIII.
n*****************n**********************************
No. 33 of 1907.
AN ACT to codify the Law relating to Marine
Insurance.
[Assented to 20th January, 1908.]
and Legislative Assembly of Western Australia, in this presentBE it enacted by the King's Most Excellent Majesty, by andwith the advice and consent of the Legislative Council
Parliament assembled, and by the authority of the same, as follows :—
| 1. | This Adt may be cited as the Marine Insurance Act, 1907, | Short title and |
| and shall come into operation on the first day of January, one | commencement. |
| thousand nine hundred and eight. |
Marine Insurance.
2. A contract of marine insurance is a contract whereby the marine Insurance
insurer undertakes to indemnify the assured, in manner and to the defined.
extent thereby agreed, against marine losses, that is to say, the
losses incident to marine adventure.
3. (1.) A contract of marine insurance may, by its express Mixed sea and land
terms, or by usage of trade, be extended so as to protect the risks.
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 loss of a
ship, or any adventure analogous to a marine adventure, is covered
1907, No. 33.]Marine Insurance. E7 EDW. VII.
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 adventure | 4. (1.) Subject to the provisions of this Act, every lawful |
and maritime perils marine adventure may be the subject of a contract of marine
defined.
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 respon- sible for, insurable property, by reason of mari- time perils. |
" Maritime perils " means the perils consequent on, or inci- dental 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.
Avoidance of wager- 5. (1.) Every contract of marine insurance by way of gaming
| tracts. | in or gaming con- or wagering is void. | o |
(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.
| 7 EDW. VII.] | Marine Insurance. | [1907, No. 33. |
6. (1.) Subject to the provisions of this Act, every person has Insurable interest
| an insurable interest who is interested in a marine adventure. | defined. |
| (2.) In particular a person is interested in a marine adven- ture where lie stands in any legal or equitable relation to the ad- venture or to any insurable property at risk therein, in conse- quence of which lie 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 re- spect thereof. |
7. (1.) The assured must be interested in the subject-matter When interest must
insured at the time of the loss though lie need not be interested attach'
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.
| 8. | (1.) A defeasible interest is insurable, as also is a con- | Defuasible or con- |
| tingent interest. | tingent 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 de- livery or otherwise. |
| 9. | A partial interest of any nature is insurable. | Partial interest. |
10. (1.) The insurer under a contract of marine insurance has Be-insurance.
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.
11. The lender of money on bottomry or respondentia has an Bottoniry.
insurable interest in respect of the loan.
12. The master or any member of the crew of a ship has an Master's and sea-
| insurable interest in respect of his wages. | men's wages. |
| 13. 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. | dvanee freight, |
| 1907, No. :33.] | Marine Insurance. | [7 EDW. VII. |
Charges of insur- 14. The assured has an insurable interest in the charges of any
| ance. | insurance which he may effect. |
Quantum of 15. (L) Where the subject-matter insured is mortgaged, the intorrst. 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 in- |
terest 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.
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.
| Assignment of | 16. |
interest.
But the provisions of this section do not affect a transmission of interest by operation of law.
Insurable Value.
| Measure of insur | 17. | Subject to any express provision or valuation in the policy, |
| able value. | the insurable value of the subject-matter insured must be ascer- tained as follows:— |
( L ) 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:
(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 |
| 7 Enw. V1L j | Marine Insurance. | [1907, No. 33. |
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.
Disclosure and Representations.
18. A contract of marine insurance is a contract based upon Insurance is uheni-
the utmost good faith, and, if the utmost good faith be not ob- ""
served by either party, the contract may be avoided by the other
party.
| 19. (1.) Subject to the provisions of this section, the assured must disclose to the. insurer, before the contract is concluded, | Disclosure iv |
| assured. | |
| 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 de- termining 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 know- ledge, and matters which an insurer in the ordin- ary 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 an 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 communica- tion made to, or information received by, the assured.
20. Subject to the provisions of the preceding section as to Disclosure by agent circumstances which need not be disclosed, where an insurance effecting insurance. is effected for the assured by an agent, the agent must disclose to
the insurer
(a.) Every material circumstance which is known to him-
self, and an agent to insure is deemed to know every
| 1907, No. 33.] | Marine Insurance. | [7 EDW. VII. |
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.
| Representations | 21. (1.) Every material representation made by the assured or his agent to the insurer during the negotiations for the con- tract, and before the contract is concluded, must be true. If it be untrue the insurer may avoid the contract. |
| pending negotiation | |
| of contract. | |
| (2.) A representation is material which would influence the judgment of a prudent insurer in fixing the premium, or determining whether lie 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.
| When contract is | 22. A contract of marine insurance is deemed to be concluded 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, although it be unstamped. |
| deemed to be con- | when the proposal of the assured is accepted by the insurer, |
| cluded. |
The Policy.
Contract must be 23. Subject to the provisions of any statute, a contract of embodied in policy. marine insurance is inadmissible in evidence unless it is em-
bodied 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.
| What policy must | 24. A marine policy must specify |
| specify. |
(1.) The name of the assured, or of some person who effects
the insurance on his behalf;
(2.) The subject-matter insured and the risk insured against;
| 7 Enw. | Marine Insurance. | [1907, No. 33. |
(3.) The voyage, or period of time, or both, as the case may
be, covered by the insurance;
(4.) The sum or sums insured;
(5.) The name or names of the insurers.
25. (1.) A marine policy must be signed by or on behalf of the signature of
insurer, provided that in the case of a corporation the corporate insurer.
seal may be sufficient, but nothing in this section shall be con-
strued 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 ex- pressed, constitutes a distinct contract with the assured.
26. (1.) .\\There the contract is to insure the subject-matter at Voyage and time
and from, or from one place to another or others, the policy is Piplicies'
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.
(2.) A time policy which is made for any time exceeding twelve months is invalid:
Provided that a time policy may contain a continuation clause as defined in this section, and such policy is not invalid on the ground only that by reason of the continuation clause it may be- come available for a period exceeding twelve months.
(3.) 11 the risk covered by the continuation clause attaches and a new policy is not issued covering the risk, the continuation clause is deemed to be a new and separate contract of marine insurance expressed in the policy in which it is contained.
(4.) For the purposes of this section the expression " con- tinuation clause " means all agreement to the following or the like effect, namely, that in the event of the ship being at sea, or the voyage not otherwise completed on the expiration of the policy, the subject-matter of the insurance shall be held covered until the arrival 'of the ship, or for a reasonable time thereafter not ex- ceeding thirty days.
27. (1.) The subject-matter insured must be designated in a 1)0,4 4-nation of
| marine policy with reasonable certainty. | subject-matter. |
| (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 in- sured in general terms, it shall be construed to apply to the in- terest intended by the assured to be covered. |
| 1907, No. 33.] | Marine Insurance. | [7 EDW. VII. |
(4.) In the application of this section regard shall be had to any usage regulating the designation of the subject-matter in- sured.
| Valued policy. | 28. | (1.) A policy may he either valued or unvalued. |
|
value of the subject-matter insured.
| (3.) | Subject to the provisions of this Act, and in the ab- |
sence of fraud, the value fixed by the policy is, as between the insurer and assured, conclusive of the insurable value of the sub- ject 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.
| Unvalued policy. | 29. 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. |
| Floating policy by | |
| ship or ships. | 30. (1.) A floating policy is a policy which describes the in- surance 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 declara- |
tion 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.
Construction of
| terms in policy. | 31. 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. |
| Premium to be | 32. (1.) Where an insurance is effected at a premium to be |
| arranged. | arranged, and no arrangement is made, a reasonable premium is payable. |
| I Euw. | Marine Insurance. | [1907, No. 33. |
(2.) Where au insurance is effected on the terms that an additional premium is to arranged in a given event, and that event happens but uo arrangement is made, then a reasonable additional premium is payable.
Double Insurance.
33. (1.) Where two or more policies are effected by or on Doable insurance.
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 in-
surance
(m) 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 in- demnity 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 iu trust for the insurers, according to their right of contribution among themselves. |
IT'arranties, etc.
34. (1.) A warranty, in the following sections relating to Nature of warranty.
warranties, means a promissory warranty, that is to say, a war- ranty 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.
| 1907, No. 33.1 | Marine Insurance. | Enw. VII. |
| When breach of | 35. (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 compli- ance with the warranty is rendered unlawful by any subsequent law. |
| warranty excused |
| (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. |
| Express warranties. | 36. (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 incor- porated by reference into the policy. | |
| (3.) An express warranty does not exclude an implied warranty, unless it be inconsistent therewith. | |
| Warranty of | 37. (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. |
| neutrality. | |
| (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 simu- lated papers. If any loss occurs through breach of this condition, the insurer may avoid the contract. |
| No implied war- | 38. There is no implied warranty as to the nationality of a ship, |
| ranty of nationality. | or that her nationality shall not be changed during the risk. |
| Warranty of good | 39. Where the subject-matter insured is warranted " well " or |
| safety. | " in good safety " on a particular day, it is sufficient if it be safe at any time during that day. |
| Warranty of sea- | 40. (1.) in a voyage policy there is an implied warranty that (2.) Where the policy attaches while the ship is in port, there is also an implied warranty that she shall, at the commence- ment of the risk, be reasonably fit to encounter the ordinary perils of the port. |
| worthiness of ship. | at the commencement of the voyage the ship shall be seaworthy for the purpose of the particular adventure insured. |
| (3.) Where the policy relates to a voyage which is per- formed in different stages, during which the ship requires dif- ferent kinds of or further preparation or equipment, there is an |
| 7 EDW. nil | Marine Insurance. | [1907, No. 33. |
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 reason- ably 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 un- seaworthy state, the insurer is not liable for any loss attributable to unseaworthiness.
41. (1.) In a policy on goods or other moveables there is no No implied war-
| implied warranty that the goods or moveables are seaworthy. | ranty that goods |
| 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 des- tination contemplated by the policy. |
42. There is an implied warranty that the adventure insured warran ty of
is a lawful one, and that, so far as the assured can control the legality.
matter, the adventure shall be carried out in a lawful manner.
The Voyage.
| (1.) Where the subject-matter is insured by a voyage policy " at and from " or " from " a particular place, it is not | Implied condition |
| as to commence- | |
| necessary that the ship should.be at that place when the contract | ment of risk. |
| is concluded, but there is an implied condition that the adventure shall be commenced within a reasonable time, and that if the ad- venture 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 | Mteration of port of |
| departure. | |
| 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 | sailing for different |
| destination. | |
| destination, the risk does not attach. |
45.
| (1.) Where, after the commencement of the risk, the des- tination of the ship is voluntarily changed from the destination contemplated by the policy, there is said to be a'chauge of voyage. | Change of voyage. |
46.
| 1907, No. 33.] | Marine Insurance. | [7 EDW. VIT. |
(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 con- templated by the policy when the loss occurs.
| Deviation. | 47. (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 de- parted from; (it
| (b.) | Where the course of the voyage is not specifically designated by the policy, but the usual and cus- tomary 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.
| Several Ports of | 48. (1.) Where several ports of discharge are specified by the |
| discharge. | 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. |
| Delay in voyage. | 49. In the case of a voyage policy, the adventure insured must |
be prosecuted throughout its course with reasonable despatch, and, if without lawful excuse it is not so prosecuted, the insurer is discharged from liability as from the time when the delay be- came unreasonable.
| Excuses for deyia- | 50. (1.) Deviation or delay in prosecuting the voyage con- |
| tion or delay. | templated 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
| 7 EDW. VIE] | Marine Insurance. | [1901, No. 33. |
| (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
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 ob- taining medical or surgical aid for any person on board the ship; or
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.
| expressly prohibiting assignment. It may be assigned either be- policy is assignable. | 51. (1.) A marine policy is assignable unless it contains terms When and how |
fore 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.
52. Where the assured has parted with or lost his interest in Assured who has no
the subject-matter insured, and has not, before or at the time of interest cannot
so doing, expressly or impliedly agreed to assign the polic y, any assign.
subsequent assignment of the policy is inoperative:
Provided that nothing in this section affects the assignment of a policy after loss.
The Premium.
53. Unless otherwise agreed, the duty of the assured or his when prendum
agent to pay the premium, and the duty of the insurer to issue the payable'
policy to the assured or his agent, are concurrent conditions, and
the insurer is not hound to issue the policy until payment or
tender of the premium.
| 54. (1.) Unless otherwise agreed, where a marine policy is | Policy effected |
| effected on behalf of the assured by a broker, the broker is directly | through broker. |
1907, No. 33.]Marine insurance. r7 EDW. VII.
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.
| Effect of receipt on | 55. Where a marine policy effected on behalf of the assured by a broker acknowledges the receipt of the premium, such ac- knowledgment is, in the absence of fraud, conclusive as between the insurer and the assured, but not as between the insurer and broker. |
| policy. |
Loss and Abandonment.
| Included and ex- | 56. (1.) Subject to the provisions of this Act, and unless the |
| cluded losses. | policy otherwise provides, the insurer is liable for any loss proxi- mately caused by a peril insured against, but, subject as afore- said, 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 proxi- mately caused by rats or vermin, or for any in- jury to machinery not proximately caused by maritime perils. |
| Partial and total | 57. (1.) A loss may be either total or partial. Any loss other |
| loss. | 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. |
| 7 EDW. VII.] | Marine Insurance. | [1907, No. 33. |
(3.) Unless a different intention appears from the terms of the policy, au insurance against total loss includes a construc- tive, 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 in- capable of identification, the loss, if any, is partial, and not total.
| 58. (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. | Actual total loss. |
| (2.) In the case of an actual total loss no notice of aban- donment need be given. |
| Where the ship concerned in the adventure is missing, and after the lapse of a reasonable time no news of her has been re- ceived, an actual total loss may be presumed. | Missing ship. |
59.
60. Where, by a peril insured against, the voyage is inter- Effect of tranship-
rupted at an intermediate port or place, under such circumstances anent, etc.
as, apart from any special stipulation in the contract of affreight- ment, 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, not- withstanding the landing or transhipment.
61. (1.) Subject to any express provision in the policy, there Constructive total
| is a constructive total loss where the subject-matter insured is | loss defined. |
| 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.
| 1907, No. 33.] | Marine Insurance. | [7 Enw. VII. |
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
(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.
| Effect of construc- | 62. |
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.
tive total loss.
| Notice of abandon- | 63. |
(1.) Subject to the provisions of this section, where the assured elects to abandon the subject-matter insured to the in- surer, he must give notice of abandonment. If he fails to do so the loss can only be treated as a partial loss.
ment.
(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 inten- tion 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 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 perjudiced by the fact that the in- surer refuses to accept the abandonment.
(5.) The acceptance of an abandonment may be either ex- press 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 aban- donment is irrevocable. The acceptance of the notice con- clusively 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.
| 7 Enw. | Marine Insurance. | [1907, No. 33. |
(9.) Where an insurer has re-insured his risk, no notice of abandonment need be given by him.
64.
| (1.) Where there is a valid abandonment the insurer is entitled to take over the interest of the assured in whatever may nei | eet. of abandon- |
"'out
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 renu for the carriage of them subsequent to the casualty causing the loss.
Partial Losses (including Salvage and General Average and
Particular Charges).
65. (1.) A particular average loss is a partial loss of the Particular average
subject-matter insured, caused by a peril insured against, and loss'
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.
66. (1.) Subject to any express provision in the policy, sal- Salvage charge
vage 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 lure by them, for the purpose of averting a peril insured against. Such expenses, where properly incurred, may be re- covered as particular charges or as a general average loss, ac- cording to the circumstances under which they were incurred.
| (1.) A general average loss is a loss caused by or directly consequential on a general average act. It includes a general | General average |
| loss. | |
| average expenditure as well as a general average sacrifice. | |
| (2.) There is a general average act where any extraor- dinary 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 |
67.
1907, No. 33.]Marine Insurance. [7 EDW. VII.
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 con- tribution in respect of the subject insured, he may recover there- for 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 connec- tion 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 in- surer in respect of general average losses or contributions is to be determined as if those subjects were owned by different persons.
Measure of Indemnity.
| Extent of liability | 68. (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 un- valued 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. |
| of insurer for loss. | |
| (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 un- valued policy. |
Total loss. 69. 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 indem- nity 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. |
| 7 Enw. VII.] | Marine Insurance. | [1907, No. 33. |
| 70. Where a ship is damaged, but is not totally lost, the | Partial loss of ship. |
measure of indemnity, subject to any express provision in the
policy, is as follows:
(1.) Where the ship has been repaired, the assured is en- titled 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 indem- nified for the reasonable depreciation, if any, arising from the unrepaired damage, provided that the ag- gregate amount shall not exceed the cost of repairing the whole damage, computed as above:
(3.) Where the ship has not been repaired, and has not been sold in her damaged state during the risk, the as- sured 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.
71. Subject to any express provision in the policy, where there Partial loss of
is a partial loss of freight, the measure of indemnity is such pro- freight.
portion 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 tinder the policy.
| Where there is a partial loss of goods, merchandise, or other moveables, the measure of indemnity, subject to any express | Partial loss of goods, merchandise, |
| etc. | |
| provision in the policy, is as follows: |
72.
(1.) Where part of the goods, merchandise, or other move- ables 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, ascer- tained as in the case of an unvalued policy:
(2.) Where part of the goods, merchandise, or other move- ables 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 merchan- dise insured has been delivered damaged at its des- tination, 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
| 1907, No. 33.1 | Marine Insurance. | [7 Enw. VII. |
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, lauding charges, and duty paid be- forehand; provided that, in the case of goods or merchandise customarily sold in bond, the bonded price is deemed to be the gross value. " Gross pro- ceeds " means the actual price obtained at a sale where all charges on sale are paid by the sellers.
(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.
| Apportionment of | 73. |
valuation.
(2.) Where a valuation has to be apportioned, and par- ticulars 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.
| General average | 74. |
(1.) Subject to any express provision in the policy, where the assured has paid, or is liable for, any general average contri- bution, the measure of indemnity is the full amount of such con- tribution, if the subject-matter liable to contribution is insured for its full contributory value; but, if sueh 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.
contributions and
salvage charges.
(2.) Where the insurer is liable -for salvage charges the extent of his liability must be determined on the like principle.
| parties. terms against any liability to a third party, the measure of in- demnity, 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. | Liabilities to ibird 75. Where the assured has effected an insurance in express | |
| as to measure of | ||
| ||
|
| 7 EDW. VII.] | Marine insurance. | [1907, No. 33. |
this Act, the measure of indemnity shall be ascertained, as nearly
as may be, in accordance with those provisions, in so far as ap-
plicable 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.
| 77. (1.) Where the subject-matter insured is warranted free | Particular average |
| from particular average, the assured cannot recover for a loss | warranties. |
| 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 per- centage, 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 per- centage. | |
| (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. |
| (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. | Successive losses. |
| (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.
79. (1.) Where the policy contains a suing and labouring Suing and labour-
| clause, the engagement thereby entered into is deemed to be sup- | ing | clause. |
| plementary to the contract of insurance, and the assured may |
1907, No. 33.] Marine Insurance. [7 EDW. VIT.
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.
Rights of Insurer on Payment.
| Right of subroga- | 80. (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. |
| tion. | |
| (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 in- demnified, according to this Act, by such payment for the loss. |
Right of contribu- 81. (1.) Where the assured is over-insured by double insur-
tion. ante, each insured is hound, as between himself and the other insurers, to contribute rateably to the loss in proportion to the amount for which lie 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.
| Effect of under | 82. Where the assured is insured for an amount less than the insurable value or, in the ease 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. |
| insurance. |
| 7 EDW. VII.] | Marine Insurance. | [1907, No. 33. |
Return of Premium
83. Where the premium, or a proportionate part thereof is, Enforcement of
| by this Act, declared to be returnable,— | return. |
(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.
84. Where the policy contains a stipulation for the return of Return by agree-
the premium, or a proportionate part thereof, on the happening meat.
of a certain event, and that event happens, the premium, or, as
the case may be, the proportionate part thereof, is thereupon re-
turnable to the assured.
85. (1.) Where the consideration for the payment of the Return for failure
premium totally fails, and there has been no fraud or illegality of consideration.
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 ap- portionable 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 at- tached, 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 re- turnable:
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 con- cluded, the premium is not returnable unless, at such time, the insurer knew of the safe arrival;
(c.) Where the assured has no insurable interest through- out the currency of the risk, the premium is re- turnable, 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;
| 1907, No. 33.] | Marine Insurance. | [7 Low. VII. |
(e.) Where the assured has over-insured under an un- valued policy, a proportionate part of the premium is returnable;
(f.) Subject to the foregoing provisions, where the as- sured has over-insured by double insurance, a proportionate part of the several premiums is re- turnable:
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
8111)1 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.
Modification of Act 86. (I.) Where two or more persons mutually agree to insure
in case of mutual each other against marine losses there is said to be a mutualinsurance.
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.
Supplemental.
| Ratification by | 87. 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. |
| assured. |
| Implied obligations 88. (1.) Where any right, duty, or liability would arise under | varied by agreement a contract of marine insurance by implication of law, it may beor usage. |
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.
| 7 EDIV. VII.] | Marine Insurance. | [1907, No. 33. |
89. Where by this Act any reference is made to reasonable Reasonable time,
time, reasonable premium, or reasonable diligence, the question Lte..L a question of
what is reasonable is a question of fact.
90. Where there is a duly stamped policy, reference may be Slip as evidence.
made, as heretofore, to the slip or covering note, in any legal pro-
ceeding.
91. In this Act, unless the context or subject-matter otherwise Interpretation of
| requires:— | terms. |
" 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.
92. (1.) Nothing in tins Act, or in any repeal effected thereby, s nvi
shall affect
(a.) The provisions of the Stamp Act, 1882, or any en- actment for the time being in force relating to the revenue;
(b.) The provisions of the Companies Act, 1893, 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 mer- chant, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to contracts of marine insurance.
93. The enactments mentioned in the Second Schedule to this Repeals.
Act are hereby repealed so far as they are in force in Western
Australia, and to the extent specified in that schedule.
| 1907, No. 33.] | Marine Insurance. | [7 EDW. VII. |
| Section 31. | First Schedule. |
RULES FOR CONSTRUCTION OF POLICY.
The following are the rules referred to by this Act for the construction of a policy 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.
(IL) 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 sheimmediately. 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 license 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.
S. The term " pirates" includes passengers who mutiny and rioters who attack the ship from the shore.
The term "thieves" does not cover clandestine theft or a theft committed by any one of the ship's company, whether crew or passengers.
9.
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.
10.
| 7 Emr. VII.] | Marine Insurance. | [1907, No. 33. |
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 engines stores, if owned by the assured.
16. The term "freight" includes the profit derivable by a shipowner from
the employment of iris 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.
| 1907, No. 33.] | Marine Insurance. | [7 EDW. VII. |
Second Schedule.
Section 93.
ENACTMENTS REPEALED.
| Session and Chapter. | Title or Short Tile. | Extent of Repeal. |
| 19 Geo. 2. c. 37 | Au Act to regulate insurance on ships The whole Act. |
belonging to the subjects of Great Britain, and on merchandises or effects laden thereon.
| 28 Geo. 3. c. 56 | An Act to repeal an Act made in the The whole Act so far as |
| twenty-fifth year of the reign of | it relates to marine |
| His present Majesty, intituled "An | insurance. |
| Act for regulating Insurances on Ships, and on goods, merchandises, | |
| Or effects," and for substituting | |
| other provisions for the like pur- pose in lieu thereof. |
By Authority : FRED. WM. SIMPSON, Government Printer, Perth.
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