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H

IS MAJESTY, by and with the advice and consent of the

Legislative Assembly of the Province of British Columbia, enacts as follows:

Short Title.

1. This Act may be cited as the “ Marine Insurance Act.”

Short title. Interpretation. 2. In this Act, unless the context otherwise requires :

Interpretation

of expressions. Action ” includes counterclaim and set-off: “ Freight” includes the profit derivable by a ship-owner 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 : “Policy” means a marine policy. [6 Edw. 7, c. 41, s. 90.]

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3. A contract of marine insurance is a contract whereby the Marine insurance

defined. 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 Edw. 7, c. 41, s. 1.]

.

4. (1.) A contract of marine insurance may, by its express terms Mixed sea and

land risks. 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

Marine adventure and maritime perils defined.

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. [6 Edw. 7, c. 41, s. 2.)

, 5. (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 movables are exposed to maritime

perils. Such property is in this Act referred to as “insur

able property": (6.) The earning or acquisition of any freight, passage-money,

commission, profit, or other pecuniary benefit, or the security for any advances, loan, or disbursements, is endangered

by the exposure of insurable property to maritime perils: (c.) Any liability to a third party may be incurred by the

owner of, or other person interested in or responsible for,

insurable property by reason of maritime perils. “Maritime perils " means the perils consequent on or incidental to the navigation of the sea, that is to say, perils of the seas, fire, war perils, pirates, rovers, thieves, captures, seizures, restraints, and detainments of princes and peoples, jettisons, barratry, and any other perils, either of the like kind or which may be designated by the policy. [6 Edw. 7, c. 41, s. 3.]

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Insurable Interest.

Avoidance of wagering or gaming contracts.

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

(2.) A contract of marine insurance is deemed to be a gaming or wagering contract:(a.) Where the assured has not an insurable interest as defined

by this Act, and the contract is entered into with no expec

tation of acquiring such an interest; or (6.) 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. [6 Edw. 7, c. 41, s. 4.]

Insurable interest defined.

7. (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. [6 Edw. 7, c. 41, s. 5.)

8. (1.) The assured must be interested in the subject matter when interest

must attach. 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. [6 Edw. 7, c. 41, s. 6.]

9. (1.) A defeasible interest is insurable, as also is a contingent Defeasible or coninterest.

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 delivery or otherwise. [6 Edw. 7, c. 41, s. 7.]

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10. A partial interest of any nature is insurable. [6 Edw. 7, c. Partial interest. 41, s. 8.]

11. (1.) The insurer under a contract of marine insurance has Reinsurance. an insurable interest in his risk and may reinsure in respect of it.

(2.) Unless the policy otherwise provides, the original assured has no right or interest in respect of such reinsurance. [6 Edw. 7, c. 41, s. 9.]

12. The lender of money on bottomry or respondentia has an Bottomry. insurable interest in respect of the loan. [6 Edw. 7, c. 41, s. 10.)

13. The master or any member of the crew of a ship has an insur. Master's and able interest in respect of his wages. [6 Edw. 7, c. 41, s. 11.)

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seamen's wages.

14. In the case of advance freight, the person advancing the Advance freight. freight has in insurable interest, in so far as such freight is not repayable in case of loss. [6 Edw. 7, c. 41, s. 12.)

15. The assured has an insurable interest in the charges of any Charges of insurance which he may effect. [6 Edw. 7, c. 41, s. 13.]

insurance.

interest.

16. (1.) Where the subject matter insured is mortgaged, the Quantum of 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.

Assignment of interest.

Measure of insurable value.

(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. [6 Edw. 7, c. 41, s. 14.]

17. 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. [6 Edw. 7, c. 41, s. 15.]

Insurable Value. 18. Subject to any express provision or valuation in the policy, the insurable value of the subject matter insured must be ascertained as follows:(1.) In insurance on ship, the insurable value is the value, at

the commencement of the risk, of the ship, including her outfit, provisions and stores for the officers and crew, money advanced for seamen's wages, and other disburse. ments (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, oils, 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 other

wise, the insurable value is the gross amount of the freight

at the risk of the assured, plus the charges of insurance: (3.) In insurance on goods or merchandise, the insurable value

is the prime cost of the property insured, plus the expenses of and incidental to shipping and the charges of insurance

upon the whole: (4.) In insurance on any other subject matter, the insurable

value is the amount at the risk of the assured when the policy attaches, plus the charges of insurance. [6 Edw. 7, c. 41, s. 16.]

Disclosure and Representations. 19. 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. [6 Edw. 7, c. 41, s. 17.)

Insurance is uberrimae fidei.

20. (1.) Subject to the provisions of this section, the assured Disclosure

by 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:
(6.) 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. [6 Edw. 7, c. 41, s. 18.]

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21. Subject to the provisions of the preceding section as to cir- Disclosure by agent

effecting insurance. cumstances 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 circum-
stance which in the ordinary course of business ought

to be known by or to have been communicated to him; and
(6.) Every material circumstance which the assured is bound

to disclose, unless it come to his knowledge too late to
communicate it to the agent. [6 Edw. 7, c. 41, s. 19.]

pending negotiation

22. (1.) Every material representation made by the assured or Representations his agent to the insurer during the negotiations for the contract, of 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 judg. ment 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.

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