or charterer of a vessel might have incurred by far the largest share of the expense involved in a long voyage, comprising wages, fuel, food and other provisions. Under such circumstances it is clear that the owner or charterer should have the privilege of securing protection against the contingency of losing on the expenses incurred in case of failure to earn his freight owing to some unavoidable peril. On the other hand, if the freight is prepaid by the shipper under a bill-of-lading which provides for no return in the event of the goods being lost or damaged, it follows that the shipper should also be entitled to full protection against the loss of the amount thus paid. While separate freight policies are often issued to special insurable interests in freight, it is common practice to include the freight interest in the hull policy where the vessel owner or charterer stands to be the loser, or to include it within the cargo policy in the form of an increased valuation of the goods where either the consignor or consignee would be the loser.

SPECIMEN OF MARINE INSURANCE CERTIFICATE

INSURANCE COMPANY

$....

(PLACE AND Date).

F No..

THIS IS TO CERTIFY, That on. ...this Company insured, under Policy made for...

.....

Dollars in Gold on

.., valued at

shipped on board of the

at and from

It is hereby understood and agreed that, in case of loss, such loss is payable to the order of..

on surrender of this Certificate, which represents and takes the place of the Policy, and conveys all the rights of the Original Policy-holder, (for the purpose of collecting any claims for loss or damage), as fully as if the property were covered by a special policy direct to the holder hereof, and is free from any liability for unpaid premiums.

Not valid unless countersigned under especial authority. given for such purpose. Countersigned

President

IT IS ESPECIALLY AGREED, that all claims for loss or damage under this Certificate shall be submitted for approval to one of the Representatives, as per list on back of this Certificate, to whom immediate notice of any casualty must be given.

Claims are to be adjusted according to the usage at Lloyds, but subject to the conditions of the policy.

Messrs. W. K. WEBSTER & Co., 2 Lime St. Square, London, England, are the Attorneys of the Company, to whom service of process can be made. Notice. To conform with the Recenue Laws of Great Britain, in order to collect a claim under this Certificate, it must be stamped within Ten days after its receipt in the United Kingdom,

COPY OF LLOYD'S FORM OF POLICY
Be it known that

as well in
own Name, as for and in
the Name and Names of all and every other
Person or Persons to whom the same doth, may,
or shall appertain, in part or in all, doth make
assurance and cause
and them
and every of them to be insured, lost or not lost,
at and from

upon any kind of Goods and Merchandises, and also upon the Body, Tackle, Apparel, Ordnance, Munition, Artillery, Boat and other Furniture, of and in the good Ship or Vessel called the

whereof is Master, under God, for this present vcyage, or whosoever else shall go for Master in the said Ship, or by whatsoever other Name or Names the same Ship, or the Master thereof, is or shall be named or called, beginning the adventure upon the said Goods and Merchandises from the loading thereof aboard the said Ship

upon the said Ship, etc.,

and shall so con

tinue and endure during her Abode there, upon the said Ship, etc.; and further, until the said Ship, with all her Ordnance, Tackle, Apparel, etc., and Goods and Merchandises whatsoever shall be arrived at

upon the said Ship, etc., until she hath moored at Anchor Twenty-four Hours in good Safety, and upon the Goods and Merchandises until the same be there discharged and safely landed; and it shall be lawful for the said Ship, etc., in this Voyage to proceed and sail to and touch and stay at any Ports or Places what

soever

without Prejudice to this Insurance. The said Ship, etc., Goods and Merchandises, etc., for so much as concerns the Assured by Agreement between the Assured and Assurers in this Policy, are and shall be valued at

Touching the Adventures and Perils which we the Assurers are contented to bear and do take upon us in this Voyage, they are, of the Seas, Men-of-War, Fire, Enemies, Pirates, Rovers, Thieves, Jettisons, Letters of Mart and Countermart, Surprisals, Takings at Sea, Arrests, Restraints, and Detainments of all Kings, Princes, and People, of what Nation, Condition, or Quality soever, Barratry of the Master and Mariners, and of all other Perils, Losses, and Misfortunes that have or shall come to the Hurt, Detriment or Damage of the said Goods and Merchandises and Ship, etc., or any part thereof; and in case of any Loss or Misfortune, it shall be lawful to the Assured, their Factors, Servants and Assigns, to sue, labor, and travel for, in, and about the Defense, Safeguard and Recovery of the said Goods and Merchandises and Ship, etc., or any part thereof, without Prejudice to this Insurance; to the Charges whereof we, the Assurers, will contribute, each one according to the Rate and Quantity of his sum herein assured. And it is especially declared and agreed that no acts of the Insurer or Insured in recovering, saving, or preserving the property insured, shall be considered as a waiver or acceptance of abandonment. And it is agreed by us, the Insurers, that this Writing or Policy of Assurance shall be of as much Force and Effect as the surest Writing or Policy of Assurance heretofore made in Lombard Street, or in the Royal Exchange, or elsewhere in London.

Warranted nevertheless free of capture, seizure and detention, and the consequences thereof, or of any attempt thereat, piracy excepted, and also from all consequences of hostilities or warlike operations, whether before or after declaration of war.

And so we the Assurers are contented, and do hereby promise and bind ourselves, each one for his own part, our Heirs, Executors, and Goods, to the Assured, their Executors, Administrators, and Assigns, for the true Performance of the Premises, confessing ourselves paid the Consideration due unto us for this Assurance by the Assured at and after the Rate of

IN WITNESS whereof, we the Assurers have subscribed our Names and Sums assured in

N. B.-Corn, Fish, Salt, Fruit, Flour, and Seed are warranted free from Average, unless general, or the Ship be stranded; Sugar, Tobacco, Hemp, Flax, Hides, and Skins are warranted free from Average under Five Pounds per Cent.; and all other Goods, also the Ship and Freight, are warranted free from Average Under Three Pounds per Cent., unless general, or the Ship be stranded.

CHAPTER XXIII

THE MARINE POLICY ANALYZED

Having explained the various kinds of marine insurance contracts in use, we may next analyze the provisions of a typical policy. The ordinary cargo policy will be used as the basis of such an analysis, essential differences in the hull policy being noted as occasion requires. Moreover, the various provisions will be discussed in the order of their appearance in the contract, with the single exception of the "perils clause" which will serve as the basis for a separate chapter. Although no uniform wording is used by all the companies, the following conditions may be regarded as fairly representative of American cargo policies:

"On Account of" and Payee of the Loss.

On Account of....

In case of loss to be paid in funds current in the....
United States, or in the City of New York to....

The words "on account of" clearly imply that the insurance may be taken out by an agent of the insured and that the party named is not necessarily the real possessor of the interest. The party named, however, must possess a true interest indirectly, if not directly. Where various parties are interested in the subject-matter of the insurance, as is often the case with open policies, it is highly important that they be designated by name or be sufficiently described. American policies often use the words "for account of whom it may concern," an expression which