1   Short title

   2   Interpretation

   3   Application

   4   Saving of rules of common law


Marine Insurance

   5   Marine insurance defined

   6   Mixed sea and land risks

   7   Marine adventure and maritime perils defined


Insurable Interest

   8   Avoidance of wagering or gaming contracts

   9   Insurable interest defined

   10   When interest must attach

   11   Defeasible or contingent interest

   12   Partial interest

   13   Reinsurance

   14   Bottomry

   15   Master's and seamen's wages

   16   Advance freight

   17   Charges of insurance

   18   Quantum of interest

   19   Assignment of interest

   20   Prohibition of gambling on loss by maritime perils


Insurable value

   21   Measure of insurable value


Disclosures and Representations

   22   Insurance is uberrimae fidei

   23   Disclosure by assured

   24   Disclosure by agent effecting insurance

   25   Representations pending negotiation of contract

   26   When contract is deemed to be concluded


The Policy

   27   Contract must be embodied in policy

   28   What policy must specify

   29   Signature of insurer

   30   Voyage and time

   31   Designation of subject matter

   32   Valued policy

   33   Unvalued policy

   34   Floating policy by ship or ships

   35   Construction of terms in policy

   36   Premium to be arranged


Double Insurance

   37   Double insurance


Warranties, etc

   38   Nature of warranty

   39   When breach of warranty excused

   40   Express warranties

   41   Warranty of neutrality

   42   No implied warranty of nationality

   43   Warranty of good safety

   44   Warranty of seaworthiness of ship

   45   No implied warranty that goods are seaworthy

   46   Warranty of legality


The Voyage

   47   Implied condition as to commencement of risk

   48   Alteration of port of departure

   49   Sailing for different destination

   50   Change of voyage

   51   Deviation

   52   Several ports of discharge

   53   Delay in voyage

   54   Excuses for deviation or delay


Assignment of policy

   55   When and how policy is assignable

   56   Assured who has no interest cannot assign


The Premium

   57   When premium payable

   58   Policy effected through broker

   59   Effect of receipt on policy


Loss and Abandonment

   60   Included and excluded losses

   61   Partial and total loss

   62   Actual total loss

   63   Missing ship

   64   Effect of trans-shipment, etc

   65   Constructive total loss defined

   66   Effect of constructive total loss

   67   Notice of abandonment

   68   Effect of abandonment


Partial Losses (Including Salvage and General Average and Particular Charges)

   69   Particular average loss

   70   Salvage charges

   71   General average loss


Measure of Indemnify

   72   Extent of liability of insurer for loss

   73   Total loss

   74   Partial loss of ship

   75   Partial loss of freight

   76   Partial loss of goods, merchandise, etc

   77   Apportionment of valuation

   78   General average contributions and salvage charges

   79   Liabilities to third parties

   80   General provisions as to measure of indemnity

   81   Particular average warranties

   82   Successive losses

   83   Suing and labouring clause


Rights of Insurer on Payment

   84   Right of subrogation

   85   Right of contribution

   86   Effect of under-insurance


Return of Premium

   87   Enforcement of return

   88   Return by agreement

   89   Return for failure ot consideration


Mutual Insurance

   90   Modification of Act in case of mutual insurance



   91   Ratification by assured

   92   Implied obligations varied by agreement or usage

   93   Reasonable time, etc, a question of fact

   94   Slip as evidence

   95   Repeal




[Date of Commencement: 20th August, 1973]

Act 1 of 1973

1   Short title

   This Act may be cited as the Marine Insurance Act.

2   Interpretation

   In this Act, unless the context otherwise requires-

   "action" includes counter-claim and set-off;

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

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

   "policy" means a marine policy.

3   Application

   This Act shall apply to contracts of marine insurance:

   Provided that it shall not apply to contracts of marine insurance made before the 20th August, 1973, or to marine insurance undertaken by the Government other than insurance that extends beyond the limits of the Island.

4   Saving of rules of common law

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

Marine Insurance

5   Marine insurance defined

   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.

6   Mixed sea and land risk

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

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

7   Marine adventure and maritime perils defined

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

   (2) In particular there is a marine adventure where-

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

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

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

   (3) "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 other perils, either of the like kind or which may be designated by the policy.

8   Avoidance of wagering or gaming contracts

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

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

9   Insurable interest defined

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

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

10   When interest must attach

   (1) The assured must be interested in the subject matter insured at the time of the loss though he need not be interested at the time 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.

11   Defeasible or contingent interest

   (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.

12   Partial interest

   A partial interest of any nature is insurable.

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