REGISTERED No. D. 221

The Gazette

of India

EXTRAORDINARY

PART II—Section I

PUBLISHED BY AUTHORITY

No.

10]

NEW DELHI, FRIDAY,

APRIL 19, 1963/CHAITRA 29, 1885

THE MARINE INSURANCE ACT, 1963

No. 11 OF 1963

[18th April, 1963]

An Act to codify the law relating to marine insurance.

MINISTRY OF LAW

(Legislative Department)

New Delhi, the 19th April, 1963/Chaitra 29, 1885 (Saka)

The following Act of Parliament

received the assent

of the

President on the 18th April, 1963 and is hereby published for general

information: —

BE it enacted by Parliament in the Fourteenth Year of the Repub-

lic of India as follows: —

1. (7) This Act may be called the Marine Insurance Act, 1963.

(2) It shall come into force on such date as the Central Govern-

ment may, by notification in the Official Gazette, appoint.

2. In this Act, unless the context otherwise requires,—

(a) "contract of marine insurance" means a contract of marine

insurance as defined by section 3;

(b) "freight"

includes the profit derivable by a ship-owner

from the employment of his ship to carry his own goods

or other movables, as well as freight payable by a third

party, but does not include passage money;

which are exposed to maritime perils;

(d) "marine adventure" includes any adventure where—

(i) any insurable property is exposed to maritime perils;

Short title

and com-

mencement.

Definitions.

59 G of I - 1 .

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THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

(ii) the earnings or acquisition of any freight, passage money,

commission, profit or other

pecuniary benefit, or the

security for any advances, loans, or disbursements is

endangered by the exposure of insurable property to

maritime perils;

(til) 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;

(e) "maritime perils" means the perils consequent on, or inci-

dental 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 which are either of

the like kind or may be designated by the policy;

(f) "movables" means any movable tangible property, other than

the ship, and includes money, valuable securities and other

documents;

(g) "policy" means a marine policy;

(h) "ship" includes every description of vessel used in navigation;

(i) "suit" includes counter-claim and set-off.

MARINE INSURANCE

3. A contract of marine insurance is an agreement whereby the

insurer undertakes to indemnify the assured, in the manner and to

the extent thereby agreed, against marine losses, that is to say, the

losses incidental to marine adventure.

4. (/) A contract of marine insurance may, by its express terms,

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.

Marire

insurance

defined.

Mixed

Sea

and

Land

Risks.

(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 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 sec-

tion provided, nothing in this Act shall alter or affect any rule of

low applicable to any contract of insurance other than a contract of

marine insurance as by this Act defined.

Explanation.—'An adventure analogous to a marine

adventure'

Includes an adventure where any ship, goods or other movables are

exposed to perils incidental to local or inland transit.

5. Subject to the provisions of this Act, every lawful marine ad-

venture may be the subject of a contract of marine insurance.

Lawful

marine

tdventute.

BKC. 1]

THffl GAZETTE OP INDIA EXTRAORDINARY

INSURABLE INTEREST

6. (i) Every contract of marine insurance by way of wagering Is

void.

(2) A contract of marine insurance is deemed to be a wagering

contract—

(a) where the assured has not an insurable interest

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

expectation of acquiring such an interest; or

(b) 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.

Avoidarce

of wagering

coniraw.

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.

Insurable

interest

defined.

8. (1) The assured must be interested

in the

subject-matter

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.

When

interest

must attach.

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

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.

Defensible

or contin-

gent interest.

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[PART ll

Partial

merest.

Reinsurance.

10. A partial interest of any nature is insurable.

11. (1) The insurer under a contract of marine insurance has 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.

Bottomry.

12. The lender of money on bottomry or respondentia has an

insurable interest in respect of the loan.

Master's and

Seamen's

Wages.

Advance

freight.

13. The master or any member of the crew of a ship has an insu-

rable interest in respect of his wages,

14. In the case of advance freight, the person advancing the

freight has an insurable interest, in so far as such freight is not

repayable in case of loss.

Charges of

insurance.

15. The assured has an insurable interest in the charges of any

insurance which he may effect.

Quantum of

interest.

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

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.

(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.

Assignment

of interest.

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 transmission of

interest by operation of law.

INSUHABLE 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

Measure of

insurable

value.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

for seamen's wages, and other disbursements of 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 and engine stores if owned by

the assured; in the case of a ship driven by power other than

steam includes also the machinery and fuels and engine stores, if

uwned by the assured; and in the case of a ship engaged in a £pe-

cial trade, includes also the ordinary fittings requisite for that

trade:

(2) In insurance on freight, whether paid in advance or

otherwise, 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.

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.

Insurance i

ubetrimae

fidei.

Disclosure

by assured.

20. (1) Subject to the provisions of this section, the 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 ordi-

nary course of business, ought to be known to him. If the assured

fails to make such disclosure, the insurer may"' avbicf'the" Contract.

(2) Every circumstance is material which would influence the

judgment of a prudent insurer in fixing the premium, or determin-

ing 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;

(b) any circumstance which is known or presumed to be

known to the insurer. The insurer is presumed to know matters

59 G of 1—2.

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[PART II

of common notoriety or knowledge, and matters which an

insurer in the ordinary course of his business as such, ought to

know;

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.

Disclosure

by agent

effecting

insurance.

21. Subject to the provisions of the preceding

section as to

circumstances 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 circumstance

which in the ordinary course of business ought to be known by,

or to have been communicated to, him; and

(b) every material circumstance which the assured is bound

to disclose, unless it comes to his knowledge too late to com-

municate it to the agent.

Representa-

tions

pending

negotiation

of contract.

22. (1) Every material representation made by the assured or

his agent to the insurer during the negotiations for the 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

judgment of a prudent insurer in fixing the premium, or determining

whether he will take the risk.

(3) A representation may be either as to a matter of fact, or as to

a matter of expectation or belief.

(4) A representation as to a matter of fact is true, if it be sub-

stantially correct, that is to say, if the difference between what is

represented and what is actually correct would not be considered

material by a prudent insurer.

(5) A representation as to a matter of expectation or belief is

true if it be made in good faith.

(6) A representation may be withdrawn or corrected before the

contract is concluded.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

(7) Whether a particular representation be material or not, is, In

each case, a question of fact.

23. A contract of marine insurance is deemed to be concluded

when the proposal of the assured is accepted by the insurer, whether

the policy be then issued or not; and for the purpose of showing

when the proposal was accepted, reference may be made to the

slip, covering note or other customary memorandum of the contract,

although it be unstamped.

When

contract it

deemed to

be con-

cluded.

THE POLICY

24. A contract of marine insurance shall not be admitted In

evidence unless it is embodied in a marine policy In accordance

with this Act. The policy may be executed and issued either at the

time when the contract ia concluded, or afterwards.

Contract

must be

embodied

in policy.

25. A marine policy must specify—

(1) the name of the assured, or of some person who effects

the Insurance on his behalf;

(2) the subject-matter insured and the risk Insured against;

(3) the voyage, or period of time, or both, as the case may

be, covered by the insurance;

What policy

must

specify.

(4) the sum or sums insured;

(5) the name or names of the insurer or Insurers.

26. (/) A marine policy must be signed by or on behalf of the

Insurer.

(2) Where a policy is subscribed by or on behalf of two or more

Insurers, each subscription, unless the contrary be expressed, consti-

tutes a distinct contract with the assured.

Signature of

Insurer.

27. (7) Where the contract Is to insure the subject-matter at and

from, or from one place to another ox others, the policy is called a

"voyage policy", and where the contract Is to insure the subject-

matter for a definite period of time, the policy is called a "time

policy". A contract for both voyage and time may be included In

the same policy.

Voyage and

time poli-

cies.

(2) A time policy which is made for any time exceeding twelve

months is invalid.

28. (7) The subject-matter insured must be designated in a

marine policy with reasonable certainty.

Designation

and subject-

matter.

THE GAZETTE OF INDIA EXTRAORDINARY

[PAHT II

(2)^J£he nature and extent of the interest of the assured in the

subject-matter insured need not be specified in the policy.

(3) Where the policy designates the subject-matter insured in

general terms, it shall be construed to apply to the interest intended

by the assured to be covered.

(4) In the application of this section regard shall be had to any

usage regulating the designation of the subject-matter insured.

29. (1) A policy may be either valued or unvalued.

(2) A valued policy is a policy which specifies the agreed value

of the subject-matter insured.

(3) Subject to the provisions of this Act, and in the absence of

fraud, the value fixed by the policy is, as between the insurer and

assured, conclusive of the insurable value of the subject intended to

be insured, whether the loss be total or partial.

(4) Unless the policy otherwise provides, the value fixed by the

policy Is not conclusive for the purpose of determining

whether

there has been a constructive total loss.

Valued

policy.

Unvalued

policy.

30. An unvalued policy is a policy which does not specify the

value of the subject-matter Insured, but subject to the limit of the

sum insured, leaves the insurable value to be subsequently ascert-

ained, In the manner hereinbefore explained.

Floating

policy by

ship or ships.

31. (/) A floating policy is a policy which describes the insurance-

In general terms, and leaves the name or names of the ship or ships

and other particulars to be defined by subsequent declaration.

(2) The subsequent declaration or declarations may be made by

endorsement on the policy, or in other customary manner.

(3) Unless the policy otherwise provides, the declarations must

be made In the order of dispatch or shipment. They must, in the case

of goods, comprise all consignments within the terms bf the policy,

and the value of the goods or other property must be honestly stated,

but an omission or erroneous declaration may be rectified even after

loss or arrival, provided the omission or declaration was made Jn

good faith.

(4) Unless the policy otherwise provides, where a declaration ot

value is not made until after notice of loss or arrival, the policy

must be treated as an unvalued policy as regards the subject-

matter of that declaration.

SEC. 1]

THE GAZETTE OF INDIA EXTRAOBDINARY

32. (1) A policy may be in the form in the Schedule.

Construc-

tion of

terms in

policy.

(2) Subject to the provisions of this Act, and unless the context

of the policy otherwise requires, the terms and expressions mention-

ed in the Schedule shall be construed as having the scope and

meaning assigned to them in the Schedule.

33. (1) Where an insurance is effected at a premium to be arrang-

ed, and no arrangement is made, a reasonable premium is payable.

(2) Where an insurance is effected on the terms that an addition-

al premium is to be arranged in a given event, and that event happens

but no arrangement is made, then a reasonable additional premium

is payable.

Premium 10

be arranged.

DOUBLE INSURANCE

34. (1) Where two or more policies are effected by or on behalf

oi the assured on the same adventure and interest or any part there-

of, and the sums insured exceed the indemnity allowed by this Act,

the assured Is said to be over-insured by double insurance.

Double

insurance.

(2) Where the assured is over-insured by double Insurance—

(a) the assured, unless the policy otherwise provides, may

claim payment from the Insurers in such order as he may think

fit, provided that he is not entitled to receive any sum in excess

of the indemnity allowed by this Act;

(b) where the policy under which the assured claims is a

valued policy, the assured must give credit as against the valua-

tion, for any sum received by him under any other policy, with-

out regard to the actual value of the subject-matter insured;

unvalued policy he must give credit, as against the full insurable

value, for any sum received by him under "any other policy;

(d) where the assured receives any sum in excess of the

indemnity allowed by this Act, he is deemed to hold such sum

in trust for the insurers, according to their right of contribution

among themselves.

WARRANTIES, ETC.

35. (1) A warranty, in the following sections relating to warrant-

ies, means a promissory warranty, that is to say a warranty by which

Nature of

warranty.

THE GAZETTE OF INDIA EXTRAORDINARY

[PABT II

the assured undertakes that some particular thing shall or shall not

be done, or that some condition shall be fulfilled, or whereby he

affirms or negatives the existence of a particular state of facts.

(2) A warranty may be express or implied.

(3) A warranty, as above defined, is a condition which must be

exactly complied with, whether it be material to the risk or not. If

it be not so complied with, then, subject to any express provision in

the policy, the insurer is discharged from liability as from the date

of the broach of warranty, but without prejudice to any liability in-

curred by him before that date-

When

breach of

warranty

excusod.

36. (1) Non-compliance with a warranty is excused when, by

reason of a change of circumstances, the warranty ceases to be appli-

cable to the circumstances of the contract, or when compliance with

the warranty is rendered unlawful by any subsequent law.

(2) Where a warranty is broken, the assured cannot avail himself

of the defence that the breach has been remedied, and the warranty

complied with, before loss.

(3) A breach of warranty may be waived by the insurer.

Express

warranties.

37. (2) An express warranty may be in any form of words from

which the intention to warrant is to be inferred.

(2) An express warranty must be Included in, or written upon,

the policy, or must be contained in some document incorporated by

reference into the policy.

(3) An express warranty does not exclude implied warranty,

unless it be inconsistent therewith.

Warranty of

neutrality.

38. (1) Where insurable property, whether ship or goods, is ex-

pressly warranted neutral, there Is an Implied condition that the

property shall have a neutral character at the commencement of the

risk, and that, so far as the assured can control the matter, its neutral

character shall be preserved during the risk.

(2) Where a ship is expressly warranted "neutral", there is also

an implied condition that, so far as the assured can control the matter,

she shall be properly documented, that is to say, that she shall carry

the necessary papers to establish her neutrality, and that she shall

not falsify or suppress her papers, or use simulated papers. If any

loss occurs through breach of this condition, the Insurer may avoid

the contract.

39. There i3 no implied warranty as to the nationality of a ship,

or that her nationality shall not be changed during the risk.

No implied

warranty of

nationality.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

40. Where the subject-matter insured is warranted "well" or "in

good safety" on a particular day, it is sufficient if it be safe at any

time during that day.

41. (1) In a voyage policy there is an implied warranty thai at

the commencement of the voyage the ship shall be seaworthy for the

purpose of the particular adventure insured.

(2) Where the policy attaches while the ship is in port, there is

also an implied warranty that she shall, at the commencement of the

risk, be reasonably fit to encounter the ordinary perils of the port.

(3) Where the policy relates to a voyage which is performed in

different stages, during which the ship requires different kinds of or

further preparation or equipment, there is an Implied warranty that

at the commencement of each stage the ship is seaworthy in respect

of such preparation or equipment for the purposes of that stage.

(4) A ship is deemed to be seaworthy when she is reasonably fit

in all respects to encounter the ordinary perils of the seas of the ad-

venture insured.

Warranty of

good safety.

Warranty of

seaworthi-

ness of ship.

(5) In a time policy there is no implied warranty that the ship

shall be seaworthy at any stage of the adventure, but where, with the

privity of the assured, the ship is sent to sea in an unseaworthy state,

the insurer is not liable for any loss attributable to unseaworthiness.

42. (1) In a policy on goods or other movables there is no

implied warranty that the goods or movables are seaworthy.

(2) In a voyage policy on goods or other movables there is an

Implied warranty that at the commencement of the voyage the ship

is not only seaworthy as a ship, but also that she is reasonably fit

to carry the goods or other movables to the destination contemplated

by the policy.

No implied

warranty

that goods

are sea-

worthy.

43. There is an implied warranty that the adventure insured is

a lawful one, and that, so far as the assured can control the matter,

the adventure shall be carried out in a lawful manner.

Warranty of

legality.

THE VOYAGE

44. (1) Where the subject-matter is insured by a voyage policy

"at and from" or "from" a particular place, it is not necessary that

the ship should be at that place when the contract is concluded, but

there is an implied condition that the adventure shall be commenced

within a reasonable time, and that if the adventure be not so com-

menced the insurer may avoid the contract-

Implied

condition

as to

commence-

ment of

risk.

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

(2) The implied condition may be negatived by snowing that the

delay was caused by circumstances known to the insurer before the

contract was concluded, or by showing that he waived the condition.

45. Where the place of departure is specified by the policy, and

the ship instead of sailing from that place sails from any other place,

the risk does not attach.

Alteration |

of port of

departure.

Sailing for

different

destination.

Change of

voyago.

46. Where the destination is specified In the policy, and the ship,

instead of sailing for that destination, sails for any other destination,

the risk does not attach.

47. (1) Where, after the commencement of the risk, the destina-

tion of the ship is voluntarily changed from the destination contem-

plated by the policy, there is said to be a change of voyage.

(2) Unless the policy otherwise provides, where there is a change

of voyage, the insurer is discharged from liability as from the time of

change, that is to say, as from the time when the determination to

change it is manifested; and it is immaterial that the ship may not

in fact have left the course of voyage contemplated by the policy

when the loss occurs.

Doviition.

48. (1) Where a ship, without lawful excuse, deviates from the

voyage contemplated by the policy, the insured is discharged from

liability as from the time of deviation, and it is immaterial that the

ship may have regained her route before any loss occurs.

(2) There is a deviation from the voyage contemplated by the

policy—

(a) where the course of the voyage is specifically designated

by the policy, and that course Is departed from; or

(b) where the course of the voyage is not

specifically

designated by the policy, but the usual and customary course is

departed from.

(3) The intention to deviate is immaterial; there must be a

deviation in fact to discharge the insurer from his liability under

the contract.

Several

ports of

discharge,

49. (/) Where several ports of discharge are specified by the

policy, the ship may proceed to all or any of them, but, in the absence

of any usage or sufficient cause to the contrary, she must proceed

to them, or such of them as she goes to, in the order designated by

the policy. If she does not there is a deviation.

(2) Where the policy is to "ports of discharge", within a given

area, which are not named, the ship must, in the absence of any

SEC. 11

THE GAZETTE OF INDIA EXTRAORDINARY

usage or sufficient cause to the contrary, proceed to them, or such

of them as she goes to, in their geographical order.

If she does not

there is a deviation.

50. In the case of a voyage policy, the adventure insured must be

prosecuted throughout its course with reasonable despaich, and, if

without lawful excuse it is not so prosecuted, the insurer is discharged

from liability as from the time when the delay became unreasonable.

Delay in

voyage.

Excuse for

deviation or

delay.

51. (1) Deviation or delay in prosecuting the voyage contemplat- ]

ed by the policy is excused—

* <

(a) where authorised by any special term in the policy; or

(b) where caused by circumstances beyond the control of

the master and his employer; or

express or implied warranty; or

(d) where reasonably necessary for the safety of the ship or

subject-matter insured; or

(e) for the purpose of saving human life or aiding a ship in

distress where human life may be in danger; or

(}) where reasonably necessary for the purpose of obtain-

ing medical or surgical aid for any person on board the ship; or

(g) where caused by the barratrous conduct of the master

or crew, if barratry be one of the perils insured against.

(£) When the cause excusing the deviation or delay ceases to

operate, the ship must resume her course, and prosecute her voyage,

with reasonable despatch.

ASSIGNMENT OF POLICY

52. (i) A marine policy may be transferred by assignment unless

it contains terms expressly prohibiting assignment, It may be assign-

ed either before or after loss.

(2) Where a marine policy has been assigned so as to pass the

beneficial interest in such policy, the assignee of the policy is

entitled to sue therecn in his own name; and the defendant is entitled

to make any defence arising out of the contract which he would

have been entitled to make if the suit had been brought in the

name of the person by or on behalf of whom the policy was effected.

(3) A marine policy may be assigned by endorsement thereon or

in other customary manner.

59 G of 1—3.

When and

how policy

is assignable.

160

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[PART II

53. Where the assured has parted with or lost his interest in the

subject-matter insured, and has not, before or at the time of so doing

expressly or impliedly agreed to assign the policy, any subsequent

assignment of the policy is inoperative:

Assured

who has no

interest can-

ttfti assign.

Provided that nothing in this section affects the assignment of a

policy after loss.

When p«

mium

payable.

THE PREMIUM

54. Unless otherwise agreed, the duty of the assured or his agent

to pay the premium, and the duty of the insurer to issue the policy

to the assured or his agent, are concurrent conditions, and the insurer

is not bound to issue the policy until payment

or tender

of the

premium.

Included and

excluded

Loss AND ABANDONMENT

55. (2) Subject to the provisions of this Act, and unless the policy

otherwise provides, the insurer is liable for any loss proximately

caused by a peril insured against, but, subject as aforesaid, he is not

liable for any loss which is not proximately caused by a paril insured

against.

(2) In particular—

(a) the insurer is not liable for any loss attributable to the

wilful misconduct of the assured, but, unless the policy other-

wise provides, he is liable for any loss proximately caused by a

peril insured against, even though the loss would not have

happened but for the misconduct or negligence of the master or

crew;

(b) unless the policy otherwise provides, the insurer on ship

or goods is not liable for any loss proximately caused by delay,

although the delay be caused by a peril insured against;

liable for ordinary wear and tear, ordinary leakage and break-

age, inherent vice or nature of the subject-matter insured, or

for any loss proximately caused by rats or vermin, or for any

injury to machinery not proximately caused by maritime perils.

56. (7) A loss may be either total or partial. Any loss other

than a total loss, as hereinafter defined, is a partial loss.

(2) A total loss may be either an actual total loss, or a construc-

tive total loss.

Partial and

totalIo39.

Sac. 1]

THE GAZETTE OF INDIA EXTRAOBDINARY

101

(3) Unless a different intention appears from the terms of the

policy, an insurance against total loss includes a constructive, as well

as an actual, total loss.

(4) Where the assured brings a suit for a total loss and the

evidence proves only a partial loss, he may, unless the policy other-

wise provides, recover for a partial loss.

(5) Where goods reach their destination in specie, but by reason

of obliteration of marks, or otherwise, they are incapable of identi-

fication, the loss, if any, is partial and not total.

57. (1) Where the subject-matter insured is destroyed, or so

damaged as to cease to be a thing of the kind insured, or where the

assured is irretrievably deprived thereof, there is an

actual total

loss.

(2) In the case of an actual total loss no notice of abandonment

need be given.

58. Where the ship concerned in the adventure is missing, and .

after the lapse of a reasonable time no news of her has been received, '

an actual total loss may be presumed.

59. Where, by a peril insured against, the voyage is interrupted ]

at intermediate port or place, under such circumstances as, apart⁽

from any special stipulation in the contract of affreightment,

justify the master in landing and reshipping the goods or other

movables, or in transhipping them, and sending them on to their

destination, the liability of the insurer continues, notwithstanding

the landing or transhipment.

60. (1) Subject to any express provision in the policy, there is a c

constructive total loss where the subject-matter insured is reason-^l

ably abandoned on account of its actual total loss appearing to be

unavoidable, or because it could not be preserved from actual total

loss without an expenditure which would exceed its value when the

expenditure had been incurred.

(2) In particular, there is a constructive total loss—

(i) where the assured is deprived of the possession of his

ship or goods by a peril insured against, and

(a) it is unlikely that he can recover the ship or goods,

as the case may be, or

(b) the cost of recovering the ship or goods, as the

case may be,

would exceed their valup when recovered; or

Actual totjd

lost.

MJM»iag

ship.

Effect of

tranship.

ment,etc.

Constructive

total loss

defined.

102

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

(ii) in the case of damage to a ship, where she is so damag-

ed by a peril Insured against that the cost of repairing the

damage would exceed the value of the ship when repaired.

In estimating the cost of repairs, no deduction is to be made

in respect of general average

contributions to those repairs

payable by other interests, but account is to be taken of the

expense of future salvage operations and of any future general

average contributions to which the ship would be liable if

repaired; or

(Hi) In the case of damage to goods, where the cost of

repairing the damage and forwarding the goods to their destina-

tion would exceed their value on arrival.

Effect

constructive

total lots.

61. Where there is a constructive total loss the assured may either

treat the loss as a partial loss, or abandon the subject-matter insur-

ed to the insurer and treat the loss as if it were an actual total loss.

Notice of

abandon-

ment.

62. (1) Subject to the provisions of this section, where the assur-

ed 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 assur-

ed to abandon his insured interest in the subject-matter

insured

unconditionally to the insurer.

(3) Notice of abandonment roust 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 enquiry.

(4) Where notice of abandonment is properly given, the rights¹

of the assured are not prejudiced by the fact that the insurer refuses'

tn accept the abandonment.

(5) The acceptance of an abandonment may be either express or

Implied from the conduct of the insurer. Tho 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,

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

103

(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

abandonment need be given by him.

Bffectof

abind oil-

men t.

63. (7) Where there is a valid abandonment the insurer is 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 entitl-

ed 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 carry-

ing the

owner's goods, the insurer is entitled to a

reasonable

remuneration for the carriage o[ them subsequent to the casualty

causing the loss.

PARTIAL LOSSES (INCLUDING SALVAGE AND GENERAL AVERAGE AND

PARTICULAR CHARGES)

64, (7) A particular average loss is a partial loss of the subject-

matter insured, caused by a peril insured against, and which is not

a 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, aro called particular charges.

Particular charges are not included in particular average.

65. (7) 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.

Particular

average loss.

Sal vane

charges.

(2) "Salvage charges" meang 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 pei ^on 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.

IO4

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

O«net«l

overage loss.

66. (1) A general average loss is a loss caused by or directly con-

sequential 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 incur-

red in time of peril for the purpose of preserving the property

imperilled in the common adventure.

(,?) 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 of expenditure, he may re-

cover from the insurer in respect of the proportion of the loss which

falls upon him; end in the case of a general average¹ 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 interest 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

thos*¹ Interests were owned by different persona.

MEAstiHE OP INDEMNITY

67. (1) The sum which the assured can recover in respect of a

loss on a policy by which he is insured, in the case of an unvalued

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

nolicv, 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 H* snb-

scrintion bears to the value fixed by the policy fn the cose of a valued

policy, or to the insurnble value in the caar of an unvalued policy.

Extent

liability

insurer

for

loss.

SEC. 1J

THE GAZETTE OF INDIA EXTRAORDINARY

105

68. Subject to the provisions of this Act, and to any express pro-

vision in the policy, where there is a total loss of the subject-matter

insured—

(2) if the policy be a valued policy, the measure of indem-

nity is the sum fixed by the policy;

Total loss.

(2) if the policy be an unvalued policy, the measure of

indemnity is the insurable value of the subject-matter Insured.

69. Where a ship is damaged, but is not totally lost, the measure

of Indemnity subject to any express provision in the policy, is as

follows—

Partial loss

of ship.

(1) where the ship has been repaired, the assured is entitled

to the reasonable cost of the repairs, less the customary deduc-

tions, 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, comput-

ed as above, and also to be indemnified for the reasonable depre-

ciation, 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 coat

of repairing such damage, computed as above;

(4) where the ship has not been repaired, and has been sold

in her damaged state during the risk, the assured is entitled to be

indemnified for the reasonable cost of repairing the damage, com-

puted as above, but not exceeding the depreciation in value as

ascertained by the sale.

70. Subject to any express provision in the policy, where there

is a partial loss of freight, the measure of indemnity is such pro-

portion of the sum fixed by the policy in the case of a valued policy

or of the insurable value in the case of en 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.

Partial loss

of freight.

71. Where there is a partial loss of goods, merchandise, or other

movables, the measure of indemnity, subject to any express provi-

sion 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

partial loss

of goodi,

merchandise,

etc.

106

THE GAZETTE OF INDIA EXTRAORDINARY

[PAHI II

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;

(o) where the whole or any part of the goods or merchan-

dise 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 b*ars

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.

Apportion-

ment of

valuation.

72. (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 cl 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.

Q«n»r«l I

average con-

tributions

and Mlvagc

charges.

73. (1) Subject to any express proviaion in the policy, where the

assured has paid, or is liable for, any general average contribution,

the measure of indemnity is the full amount of such contribution if

the subject-matter liable to contribution is insured for its full contri-

butory 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 under

insurance, and where there has been a particular average loss which

constitutes a deduction from the contributory value, and for which

SEC. 1]

THE GAZETTE OP INDIA EXTRAORDINARY

107

the insurer is liable, that amount must be deducted from the insur-

ed 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 liabilities must be determined on the like principle.

74. Where the assured has effected an insurance in express terms

against any liability to a third party, the measure of indemnity, sub-

ject to any express provision in the policy, is the amount paid or

payable by him to such third party in respect of such liability.

Liabilities

:o third

parties.

75. (!) Where there has been a luss hi respect of any subject-

matter not expressly provided for in oie foregoing provisions of this

Act, the measure of indemnity shall hu ascertained as nearly as may

be, in accordance with those provision^, in so far as applicable to the

particular case.

(2) Nothing in the provisions of tlus Act relating to the measure

of indemnity shall aifect 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 thu luss the whole or any part of

the subject-matter insured was not ai risk under the policy.

76. (1) Where the subject-matter insured is warranted free from

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 ap^rtionable; 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 oilier expenses properly incurred pursuant to the pro-

visions of the suing and labouring clause in order to avert a loss

insured against.

(3) Unless the policy otherwise

provides, where the subject-

matter insured is warranted free from particular average under a

specified percentage, a general average loss cannot be added to a

particular average loss to make up the specified percentage.

(4) For the purpose of ascertaining whether the specified per-

centage has been reached, regard shall be had only to the actual loss

suffered by the subject-matter insured. Particular charges end the

expenses of and incidental to ascertaining and proving the loss must

be excluded.

General pto-

visions as to

measure of

indemnity.

Particular

average

warranties.

77. (I) Unless the policy otherwise provides, and subject to the

provisions of this Act, the insurer is liable for successive losses, even

though the total amount of such losses may exceed the sum insured.

Successive

losses.

59 G 01 1—4.

io8

t&E GAZETTE OF INDIA EXTRAOflDlNAflV

[PART il

(2) Where, under the same policy, a partial loss, which has not

been repaired or otherwise made good, is followed by a total loss/

the assured can only recover in respect of the total loss:

Provided that nothing in this section shall affect the liability of

the insurer under the suing and labouring clause.

Suing end

labouring

clause.

78. (2) Where the policy contains a suing and labouring clause,

the engagement thereby entered into is deemed to be supplementary

to the contract of insurance, and the assured may recover from the

insurer any expenses properly incurred pursuant to the clause, not-

withstanding that the insurer may have paid for a total loss, or that

the subject-matter may have been warranted free from particular

average, either wholly or under a certain percentage.

(2) General average losses and contributions and salvage charges,

as denned by this Act, are not recoverable under the suing and

labouring clause.

(3) Expenses incurred for the purpose of averting or diminishing

any loss not covered by the policy are not recoverable under the

suing and labouring clause.

(4) It is the duty of the assured and his agents, hi all cases, to

take such measures as may be reasonable for the purpose of averting

or minimising a loss.

SEC. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

109

(2) If any insurer pays more than his proportion of the loss, he is

entitled to maintain a suit for contribution against the other insurers,

and is entitled to the like remedies as a surety who has paid more

,than his proportion of the debt.

81. Where the assured is insured for an amount less than the

Insurable value, or, in the case of a valued policy, for an amount less

than the policy valuation, he is deemed to be his own insurer in

respect of the uninsured balance.

Effect of

under insu-

rance.

RETURN OF PREMIUM

82. Where the premium, or a proportionate part thereof, is, by

this Act, declared to be returnable—

(a) if already paid, it may be recovered

by the assured

from the insurer, and,

(b) if unpaid, it may be retained by the assured or his

agent.

83. Where the policy contains a stipulation for the return of the

premium, or a proportionate part thereof, on the happening of a

certain event, and that event happens, the premium, or, as the case

may be, the proportionate part thereof, is thereupon returnable to

*the assured.

84. (1) Where the consideration for the payment of the premium

totally fails, and there has been no fraud or illegality on the part of

the assured or his agents, the premium is thereupon returnable to the

assured.

(2) Where the consideration for the payment of the premium

is apportionable and there is a total failure of any apportionable part

of the consideration, a proportionate part of the premium is, under

the like conditions, thereupon returnable to the assured.

(3) In particular—

(a) where the policy is void, or is avoided by the Insurer as

from the commencement of the risk, the premium is returnable,

provided there has been no fraud or illegality on the part of the

assured; but if the risk is not apportionable, and has once attach-

ed, the premium is not returnable;

(b) where the subject-matter insured, or part thereof, has

never been imperilled the premium, or, as the case may be, a

proportionate part thereof, is returnable:

Provided that where the subject-matter has been insured

"lost or not lost", and has arrived in safety at the time when the

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

contract is concluded, the premium is not returnable unless, at

such time, the insurer knew of the safe arrival;

the currency of the risk the premium is returnable, provided^

that this rule does not apply to a policy effected by way of

wagering;

(d) where the assured has a defeasible interest which is

terminated during the currency of the risk, the premium is not

returnable;

(e) where the assured has over-insured under an unvalued

policy, a proportionate part of the premium is returnable;

(f) subject to the foregoing provisions, where the assured

has over-insured by double insurance, a proportionate part of the

several premiums is returnable:

Provided that, if the policies are effected at different times,

and any earlier policy has at any time borne the .entire risk, or

If a claim has been paid on the policy in respect of the full sum

insured thereby, no premium is returnable in respect of that

policy, and when the double insurance Is effected knowingly by

the assured no premium is returnable.

SUPPLEMENTAL

85. Where a contract of marine Insurance is in good faith effected

by one person on behalf of another, the person on whose behalf it Is

effected may ratify the contract even after he Is aware of a loss.

SK. 1]

THE GAZETTE OF INDIA EXTRAORDINARY

89. The Central Government may, by notification in the Official

Gazette, direct that the provisions of this Act shall, in their applica-

tion to contracts of marine insurance relating to any class of ships

exclusively used in inland navigation, be subject to such conditions,

exceptions and modifications as it may specify in the notification.

Power to

apply Act

with modifi-

cations etc.

In certain

coses.

90. Nothing tn clause (e) of section 6 of the Transfer of Property

Act, 1882, shall affect the provisions of sections 17, 52, 53 and 79.

Certain

provision!

to override

Transfer of

Property

Act, 1882.

4 01 1882.

91. The rules of law, including the law merchant, which applied

to contracts of marine insurance immediately before the commence-

ment of this Act, save in so far as they are inconsistent with the ex-

press provisions of this Act, shall continue to apply to contracts of

marine insurance.

Savings,

A Of 1899-

i of 1883.

92. Sub-sections (I), (2) and (3) of section 7 of the Indian Stamp

Act, 1899 and sections 130A and 135A of the Transfer of Property Act,

1882 are hereby repealed.

Repeali.

SCHEDULE

FORM OF POLICY

(See section 24)

BE IT KNOWN THAT

as well in

own name as for and in the name aM names of all and every other

person or persons to whom the same roth, may, or shall appertain, in

part or in all doth make assurance e^d cause

and

them, and every of them, to be insu^d 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 furni-

ture, of and In the good ship or ves^l called the

whereof is master for this present voyage

or whosoever else shall go for mast"?- in the said ship or by what-

soever other name or names the sai^ ship, or the master thereof,

Is or shall be named or called; bep^;nning the adventure upon the

said goods and merchandises from the loading thereof aboard the

said ship,

upon the s?1d 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 ordnance, tackle, apparel, etc., and goods and merchan-

dises whatsoever shall be arrived at

upon the said

ohip, etc., until she hath moored at anchor twentyrfour

hours

:i2

THE GAZETTE OF INDIA EXTRAORDINARY

[PART n

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 whatsoever without pre-

judice to this insurance. The said ship, etc., goods and merchandises,

etc., for so much as concerned 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

seajj, 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 abandon-

ment. And so we, the assurers, are contented, and do hereby pro-

mise and bind ourselves, each one for his own part, our heirs, exe-

cutors, 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

MEMORANDUM 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 per cent, and all other goods, also the

ship and freight, are warranted free from average, under three per

cent, unless general, or the ship be stranded.

Sab. ij

irtiE CAZETTE OF lrit>IA EXTRAORDINARY

RULES FOR CONSTRUCTION OF POLICY

The following are the rules referred to by this Act for the

construction of a policy in the above or other like form, where the

context does not otherwise require:—

1. Where the subject-matter is insured "lost or not lost" and the

loss has occurred before the contract is concluded, the risk attaches

unless, at such time the assured was aware of the loss, and the insurer

was not.

Lost or not

lost.

2. Where the subject-matter is insured "from" a particular place,

the risk does not attach until the ship starts on the voyage insured.

3. (a) Where a ship is insured "at and from" a particular place,

and she is at that place in good safety when the contract is concluded,

the risk attaches immediately.

From.

At and

from.

(b) If she be not at that place when the contract is concluded,

the risk attaches as soon as she arrives there in good safety, and,

unless the policy otherwise provides, it is immaterial that she is

covered by another policy for a specified time after arrival.

place, and the ship is at that place in good safety when the contract

is concluded, the risk attaches immediately. If she be not there

when the contract is concluded, the risk attaches as soon as she

arrives there in good safety.

(d) Where freight, other than chartered freight, is payable with-

out special conditions and is insured "at and from" a particular place,

the risk attaches pro rata as the goods or merchandise are shipped;

provided that if there be cargo in readiness which belongs to the

ship-owner, or which some other person has contracted with him to

ship, the risk attaches as soon as the ship is ready to receive such

cargo.

4. Where goods or other movables are insured "from the loading

thereof", the risk does not attach until such goods or movables are

actually on board, and the insurer is not liable for them while in

transit from the shore to the ship.

From tne

thereof.

5. Where the risk on goods or other movables continues until they

are "safely landed", they must be landed in the customary manner

and within a reasonable time after arrival at the port of discharge,

and if they are not so landed the risk ceases.

Safely

landed.

i i 4

THE GAZETTE OF INDIA EXTRAOftDlftARY

[PART it

Touch and

stay.

6. In the absence of any further license or usage, the liberty to

touch and stay "at any port or place whatsoever" does not authorise

the ship to depart from the course of her voyage from the port of

departure to the port of destination.

Perils of

the Seal.

7. The term "perils of the seas" refers only to fortuitous accidents

or casualties of the seas. It does not include the ordinary action of

the winds and waves.

piratti.

8. The term "pirates" includes passengers who mutiny and rioters

who attack the ship from the shore.

Thi«Tet.

9. The term "thieves" does not cover clandestine theft or a theft

committed by any one of the ship's company, whether crew or pas-

sengers.

Restraint of

Prince*.

10. The term "arrests, etc., of kings, princes, and people" refers

to political or executive acts, and does not include a loss caused by

riot or by ordinary judicial process.

Barratry.

11. The term "barratry" includes every wrongful act

wilfully

committed by the master or crew to the prejudice of the owner, or,

as the case may be, the charterer.

All other

peiila.

12. The term "all other perils" includes only perils similar in kind

to the perils specifically mentioned in the policy.

Avenge un-

lesi General.

13. The term "average unless general" means a partial loss of the

subject-matter insured other than a general average loss, and does

not include "particular charges".

Stranded..

14. Where the ship has stranded, the insurer is liable for the ex-

cepted losses although the loss is not attributable to the stranding,

provided that when the stranding takes place the risk has attached

and, if the policy be on goods, that the damaged goods are on board.

Ship.

15. The term "ship" includes the hull, material and outfit, stores

and provisions for the officers and crew, and, in the case of vessels

engaged ha a special trade, the ordinary fittings requisite for the

trade, and also, in the case of a steamship, the machinery, boilers, and

coals and engine stores, if owned by the assured and also in the case

of a ship driven by power other than steam, the machinery and

fuels and engine stores, if owned by the assured.

SEC. 1]

THE GAZETTE 0¥ INDIA EXTRAORDINARY

1I5

16. The term "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.

Freight.

17. The term "goods" means goods in the nature of merchandise,

and does not include personal effects or provisions and stores for use

on board.

Goods

In the absence of any usage to the contrary, deck cargo and liv-

ing animals must be insured specifically, and not under the general

denomination of goods.

R. C. S. SARKAK,

Secy, to the Govt. of India.

PRINTED IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OF rNDIA PRBS^

NEW DELHI AND PUBLISHED BY THE MANAGE!; OF PUBLICATIONS, DELHT, Mfi3