abandonment.

64. (1.) Subject to the provisions of this section, where the Notice of 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 reinsured his risk, no notice of abandonment need be given by him. [6 Edw. 7, c. 41, s. 62.]

abandonment.

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

(2.) Upon the abandonment of a ship, the insurer thereof is entitled to any freight in course of being earned, and which is earned by her subsequent to the casualty causing the loss, less the expenses of earning it incurred after the casualty; and, where the ship is carrying the owner's goods, the insurer is entitled to a reasonable remuneration for the carriage of them subsequent to the casualty causing the loss. [6 Edw. 7, c. 41, s. 63.]

Partial Losses (including Salvage and General Average and
Particular Charges).

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

average loss.

a general average loss.

Salvage charges.

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. [6 Edw. 7, c. 41, s. 64.]

67. (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. [6 Edw. 7, c. 41, s. 65.]

68. (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 connection 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. [6 Edw. 7, c. 41,

s. 66.]

Measure of Indemnity.

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

(2.) Where there is a loss recoverable under the policy, the insurer, or each insurer if there be more than one, is liable for such proportion of the measure of indemnity as the amount of his subscription bears to the value fixed by the policy in the case of a valued policy, or to the insurable value in the case of an unvalued policy. [6 Edw. 7, c. 41, s. 67.]

70. Subject to the provisions of this Act and to any express pro- Total loss. vision in the policy, where there is a total loss of the subject-matter

insured:

(1.) If the policy be a valued policy, the measure of indemnity

is the sum fixed by the policy:

(2.) If the policy be an unvalued policy, the measure of in-
demnity is the insurable value of the subject-matter insured.
[6 Edw. 7, c. 41, s. 68.]

ship.

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

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

(2.) Where the ship has been only partially repaired, the assured
is entitled to the reasonable cost of such repairs, computed
as above, and also to be indemnified for the reasonable
depreciation (if any) arising from the unrepaired damage,
provided that the aggregate amount shall not exceed the
cost of repairing the whole damage, computed as above:
(3.) Where the ship has not been repaired and has not been
sold in her damaged state during the risk, the assured is
entitled to be indemnified for the reasonable depreciation
arising from the unrepaired damage, but not exceeding
the reasonable cost of repairing such damage, computed
as above. [6 Edw. 7, c. 41, s. 69.]

freight.

72. 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 propor

Partial loss of goods, merchandise,

etc.

Apportionment of valuation.

tion 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. [6 Edw. 7, c. 41, s. 70.]

73. 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:—

(1.) 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:

(2.) 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, ascertained as in case of total loss:

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

(4.) "Gross value" means the wholesale price or, if there be no such price, the estimated value, with, in either case, freight, landing charges, and duty paid beforehand; provided that, in the case of goods or merchandise customarily sold in bond, the bonded price is deemed to be the gross value. "Gross proceeds" means the actual price obtained at a sale where all charges on sale are paid by the sellers. [6 Edw. 7, c. 41, s. 71.]

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

(2.) Where a valuation has to be apportioned and particulars of the prime cost of each separate species, quality, or description of goods cannot be ascertained, the division of the valuation may be made over the net arrived sound values of the different species, qualities, or descriptions of goods. [6 Edw. 7, c. 41, s. 72.]

contributions and

75. (1.) Subject to any express provision in the policy, where the General average assured has paid, or is liable for, any general average contribution, salvage charges. 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 underinsurance, 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.

c. 41, s. 73.]

[6 Edw. 7,

third parties.

76. Where the assured has effected an insurance in express terms Liabilities to 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. [6 Edw. 7, c. 41, s. 74.]

as to measure of

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

(2.) Nothing in the provisions of this Act relating to the measure of indemnity shall affect the rules relating to double insurance, or prohibit the insurer from disproving interest wholly or in part, or from showing that at the time of the loss the whole or any part of the subject-matter insured was not at risk under the policy. [6 Edw. 7, c. 41, s. 75.]

warranties.

78. (1.) Where the subject-matter insured is warranted free from Particular average 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