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repairs must be effected and claims presented to underwriters within fifteen months from the date of the accident.

The construction of the clauses is to be as written wording in the policy. The effect of this was considered in connection with the S. G. form of policy.

From the above the effect of the clauses is as follows:The clauses cover:

Total and/or constructive total loss (in full); 75 per cent. damage being deemed to be a constructive total loss;

Particular average, with a franchise of 3 per cent. each valuation and an excess of $500 each accident;

Salvage charges if incurred in respect of loss insured against;

Particular charges;

Direct liability in respect of general average, sacrifices of
hull and equipment (excess as above);

Steamer's proportion of general average contribution ;
Sue and labour charges (no excess);

Four-fourths Running Down clause; excess of $500 each accident, but not cumulative with the P.A. excess above; The clauses do not cover :

3 per cent. of the entire value of the vessel in respect of all claims other than total loss in respect of damage by ice, i.e., in this connection the clauses are comparable with the Institute Excess of 3 per cent. P.A.-Hulls.

Other than in connection with the R.D.C. the exclusions are as Institute Time clauses-Hulls.

AMERICAN AND CANADIAN

LAKE HULLS.
PROTECTION AND INDEMNITY CLAUSES.

The losses covered by these clauses are as noted in connection with the parallel clauses in the Institute clauses for Builders' Risks (vide p. 187) with the following modifications :

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Consent of insurers of two-thirds in amount required before litigation or no liability;

$500 excess each accident for R.D.C. claims;

$48.60 excess each claim in respect of loss or damage caused by or upon the insured vessel, or other interests on board or not on board however caused not embraced in $500 excess above;

Shortage of cargo consequent on custom or bill of lading guarantee expressly excluded;

No claim admissible in respect of anything covered by any other policy or cover.

Navigation limits are as per Lake Time clauses above; no returns for laying up. The clauses are based on the assumption that the vessel is fully covered under full fourfourths R.D.C., and the policy cannot be called upon to contribute in double insurance.

AMERICAN HULL FORM (A.H.U.A.).

This present form supersedes the previous Atlantic Form and the American Hull Form, 1917, and its successor. It comprises an agreement reached between English and American insurers in respect of insurances on the hulls of American vessels protected in this country. It is issued by the Institute of London Underwriters. In itself it comprises a complete policy, but when used, is invariably attached to a S.G. Form, it being expressed that the terms of the clauses are to be regarded as substituted for those of policy form to which it is attached, the latter being hereby waived." The clauses are time clauses and the sum insured and the valuation(s) are stated in dollar currency. Instead of the customary English recital, "Whereas " or "Be it known that " the form opens with "For account of . . loss, if any, payable to Although the expression at and from is in this country deemed to be superfluous in a time policy, the words appear in the form, as does the expression "lost or not lost." In a policy effected in England for a

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period of time, the risk is deemed to run from midnight of the first mentioned day at Greenwich Mean Time. In America there is no such universal time standard, as is naturally to be expected in connection with so vast a country. Therefore a space is left in the form, preceded by the words, "Beginning and ending with," in which to insert what recognised time shall govern the inception and expiry of the policy, e.g., "New York Mean Time." Then appears "But warranted as follows. . Literality is essential in drafting this part of the policy, for this is how the Courts would construe any entry following such phraseology. Such meticulate care is not called for in preparing the whole of an ordinary policy, as all that is necessary is that there shall not appear any material misdescription, e.g., such as to cause an underwriter to think he was covering one vessel, etc., when in fact the insurance was intended to cover quite another. It should be remembered that the policy itself overrides the "premium ("original or "long") slip, and if there be any divergence between the two the policy will prevail, even though the difference be the result of a simple mistake in the office of the insurers.

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The operative part of the form combines the functions performed in the case of an insurance of a British vessel by the S.G. Form and the Institute Time clauses-Hulls. It is therefore proposed to examine the form in detail, drawing the necessary comparison with the relevant standard English cover.

The general wording as to the subject-matter covered naturally omits the frequently recurring "Goods, etc.," of the S.G. Form and to the general description of hull interests the words " boilers and machinery of the steamship" are added. Following the name of the vessel and some_general words appears the "Docking clause " as in the Institute Time clauses, after which follows "With liberty to discharge. exchange and take on board goods, specie, passengers and stores, wherever the vessel may call at and proceed to, and with liberty to carry goods, live cattle, etc., on deck or otherwise, but warranted free of all claims in connection with

deck cargo. (English Law admits in general average, and therefore the Institute clauses pay steamer's proportion of, jettison of deck cargo carried on deck not in violation of the contract of affreightment and in conformity with the customs of trade.) A further extension of the Docking clause is then embraced. The agreement as to the value of the ship comes next and the form is drafted for the insertion of a separate value for hull, tackle, apparel, furniture, etc., and for boilers, machinery, etc., and everything connected therewith. Provisions as to inclusion in "hull" and exclusions of refrigerating apparatus, etc., are as per Institute Time clauses. The premium rating clause next follows instead of coming last as in the S.G. policy. The form does not confess payment of the premium as does the S.G. Form, but if the insurance be effected through a broker, this is of no moment, as the custom for the insurer to look to the broker for payment of the premium is binding.

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The next clause is the "Disbursements clause, and this is not in the same form as it appears in the Institute Time clauses. Fifteen per cent. of the policy valuation may be insured by means of honour policies on all interests and in addition

The amount of premiums at risk may be insured, diminishing or otherwise;

Twenty five per cent. of the insured value of the vessel, and any excess thereof whilst at risk, on account of freight, etc., however described;

General average and salvage disbursements whilst at risk. (It should be observed that contribution cannot be levied from the interests at risk, in respect of their respective proportions of such interests, unless the vessel arrives safely at a port of refuge, and the adventure be there abandoned, or at her destination, as the case may be. Thus the shipowner or charterer, as the case may be, who has advanced such expenditure has a definite insurable interest in respect thereof and usually protects himself by effecting a total loss only policy to protect him against such contingency.)

As in the Institute clauses, breach of this warranty does not prejudice mortgagees or other third parties who may have accepted the policy without notice of the breach, but the words" and are not privy thereto " do not appear.

The perils insured against are identical with those of the S.G. Form, but as the principle of ejusdem generis is not applicable in the same manner in the United States of America, the expression "and all other perils" is amended by the addition of the word "like," i.e., “and all other like perils.. The Sue and Labour clause contains but one modification from the standard form, which leaves its meaning unaffected, namely, "for the assured" is substituted for the time-honoured "to the assured." The waiver clause appears in its normal form.

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Next comes the Inchmaree clause in a wording slightly more comprehensive than the Institute Time clauses form. The word "through" replaces "directly caused by," and riots risks are embraced. Explosion losses are covered whether the explosion was on board or not on board, but in view of the fact that this has already been provided for (see above). Reference is now made to loading, discharging and handling cargo. (Many differences in phraseology which have been noticed are attributable to law cases in the respective countries. Thus the A.H.F. wording re explosion is there as a result of the Halifax explosion some years ago, while the inclusion in the Institute Inchmaree clause of accidents in dealing with cargo arises out of an English court decision to the effect that damage done to the hull of a vessel by a boiler which fell into and damaged the hold of a ship, by reason of the breakage of a crane cable, is not a loss covered by the policy.)

The Collision clause in the A.H.F. is very similar to the corresponding clause in the Institute Time clauses, but covers Four-fourths of liability, up to the insured value of the vessel each accident, and a like proportion of costs incurred with the consent in writing of the majority in amount of the underwriters. Cross liabilities-unless one (or more) vessel limits her liability-apply, and the Sister Ship clause

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