or interest" or "without further proof than the policy itself " (called for brevity "p.p.i. " policies, that is, "policy proof of interest") or "without benefit of salvage to the insurer" in any similar terms. In fact, gambling on loss by maritime perils is a criminal offence punishable by fine or imprisonment under the provisions of the Marine Insurances (Gambling Policies) Act, 1909. The insurable interest necessary in the case of marine insurances is where the insured stands in any legal or equitable relation to the adventure or to any ship, goods or other movables at risk therein, in consequence of which he may benefit by the safety or due arrival of the property, or may be prejudiced by its loss, damage or detention, or may incur liability in respect thereof. Such interest must exist at the time of the loss; it need not necessarily exist at the time of effecting the insurance, but may be acquired during the currency of the policy, and it may even be acquired after the occurrence of a loss if the insurance is effected "lost or not lost," unless the insured was aware of the loss at the time. The following would be examples of an insurable interest the owner or the mortgagee of property; a bottomry bondholder, to the extent of the amount payable to him under the bond; an insurer (Insurance Company or Underwriter) who may re-insure to the extent of his liability; the master and crew for their wages, although the charterer or owner would, as a rule, cover any such risk; a creditor who advances freight. But although a mortgagee or a bondholder has an interest in the property to the amount charged thereon, yet it was held in Moran Galloway & Co. v. Uzielli (1905) that a creditor has no insurable interest in the debtor's property merely on the ground that its loss would diminish his chance of obtaining ultimate satisfaction of the debt. Warranties. There are generally certain express warranties in marine policies, such as the date of sailing and the safety of the ship at the time of insuring. In addition to express warranties, there are certain implied warranties mentioned in the Act of 1906(1) That all material facts have been disclosed and no untrue representations made. (2) That at the commencement of the voyage the ship is seaworthy for the purposes of the particular adventure. (3) That the adventure is a lawful one. (4) That a change of voyage or direction, i.e., deviation, shall not take place. The breach of any of these warranties will absolve the insurer from any liability and enable him to avoid the contract, so that these differ from warranties under the ordinary law of contract. Representations made in the negotiations prior to the contract must be substantially correct, otherwise the policy will be voidable. Policies It is necessary that all contracts of marine insurance shall be in the form of a "Policy," specifying particulars mentioned in the Act. Policies may be of several kinds, the more important being (1) Voyage Policies, covering the risk during a particular (2) Time Policies, covering the risk for the time the policy 66 (4) Unvalued Policies, wherein the value of the subject-matter is not stated. The amount to be paid in the event of a loss has to be assessed, up to the limit of the sum assured, after the loss. (5) Mixed Policies, which are time policies in which the voyage also is specified. It is the usual custom for marine insurances to be effected through the agency of an Insurance Broker, and he is personally liable to the underwriters for the premium. A memorandum of the terms is drawn up by the broker, and this is initialled by the underwriters for the amount that each proposes to underwrite. Such a document is known as "the slip," and it is from this slip that the formal policy is prepared. The slip itself has no binding force and the court will look at it only for collateral purposes, such as to determine the date of undertaking the risk. Lloyd's S.G. Policy. The policy is a document in formal terms, and the usual form is in accordance with that scheduled to the Act of 1906 and is known as Lloyd's S.G. policy. The following is a reprint, with the exception of the words in italics, which have been inserted to make the form more intelligible. S.G. £..... BE IT KNOWN THAT A and/or as Agent as well in his own Name as for and in the Name and Names of all and every Person or Persons to whom the same doth, may, or shall appertain, in part or in all doth make assurance and cause himself and them, and every of them, to be insured, lost or not lost, at and from Liverpool 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 Speedy, whereof is Master, under God, for this present voyage George Smeeth, or whosoever else shall go for Master in the said Ship, or by whatsoever other Name or Names the said 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 Speedy upon the said ship, etc. . . . and so shall continue and endure, during her Abode there, upon the said ship, etc.; and further, until the said Ship with all her Ordnances, Tackle, Apparel, etc., and Goods and Merchandises whatsoever shall be arrived at Buenos Aires 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 the Voyages to proceed and sail to and touch and stay at any Ports or Places whatsoever on the East Coast of South America 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 £50,000. Touching the Adventures and Perils which we the Assurers are contented to bear and so 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, labour, and travel for, in and about the Defence, Safeguards, 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 Assurances 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. 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 A at and after the Rate of Five Pounds per Cent. IN WITNESS whereof we, the Assurers, have subscribed our Names and Sums assured in Liverpool. 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 Averages under Three Pounds per Cent. unless general, or the Ship be stranded. Reference is made in Chapter 9 to certain of the clauses contained above, e.g., deviation, and all are the result of years of experience and of many legal decisions. But perhaps a passing consideration may be given to some other of the expressions included in the policy. As well in his own Name as for . . This form of words is inserted so that the policy will extend to all persons possessing an insurable interest at any time during the continuance of the risk, provided the person effecting the policy intended to insure on their behalf. "Lost or not lost." This is an important phrase, and entitles the assured to the benefit of the insurance, provided of course he has an interest in the subject-matter, even if it was actually lost at the time of effecting insurance. If, however, he knew of the loss at the time, the policy is void; and if the underwriter knew at the time that the ship had arrived safely, he must return the premium. "At and from Liverpool The risk begins at the commencement of the voyage for which the insurance is effected where the word "from" is used, but where the words "at and from " are used, if the ship is then in a place of safety, the risk begins at once. If she is not yet in a place of safety, the risk arises when she arrives at that place. 66 The good Ship . . . called the Speedy, whereof is Master It is necessary that the name of the ship and the name of the master be inserted. "Beginning the adventure upon the said Goods." The risk on the goods attaches only when they are actually on board, unless otherwise specifically agreed. "Until she hath moored in good Safety, and upon the Goods . . . until the same be there discharged and safely landed." The risk then continues until the goods are landed safely in the customary manner, and within a reasonable time after arrival at the port of discharge. To proceed and sail to and touch and stay at "Any ports only means those usual ports of call on the particular voyage, and does not mean any ports outside those customary on that voyage. "Valued at." The amount of insurance and its valuation has already been considered. "The Adventures and Perils . . ." Many of the perils: insured against are enumerated. Under" all other perils fall perils ejusdem generis (of the same kind), as those specifically set out in the policy. The "suing and labouring clause," marked with an asterisk (*), has for its object the making of efforts to preserve the insured property in cases of accident. The rights are in no way prejudiced by anything done in furtherance of such an object, and even if the efforts are unsuccessful, the insured is entitled to expenses thereby incurred. The whole question of marine insurance is so broad that it cannot be adequately dealt with herein, and, for further details and interpretation of the policy reference should be made to the special text-books on the subject. Losses. There are two kinds of losses (1) PARTIAL, where there is only partial damage to the subject-matter. (2) TOTAL, where there is (a) Actual Total Loss, that is, the subject-matter has been totally destroyed, or irreparably damaged, or the owner is irretrievably deprived of it, or (b) Constructive Total Loss, that is, the subject-matter is so damaged as reasonably to justify the owner in abandoning it, or where it cannot be preserved from becoming an actual loss without expenditure in excess of its value when recovered. On this latter point it was decided in the case of Sailing Ship Blairmore Co. v. Macredie (1898) that the insurers cannot convert a constructive total loss into a partial loss by incurring an expense which a prudent owner would not have incurred, by raising the vessel which had been sunk in deep water and abandoned by the owner. On the occurrence of a loss, notice must be given to the underwriter as soon as possible; but, in the event of a partial loss, no claim can be made until the extent of the loss has been ascertained. On a total actual loss the underwriters are liable |