LLOYDS.
In practice marine insurance is a complicated busi ness transacted for the most part through the medium of brokers who, by their expert knowledge, can select the best market in which to place their clients' risks, and obtain the terms most suit able for the adventure to be insured. So far as the hulls of ships are concerned, sailing vessels are generally insured for each voy age, while steamers are insured for periods of time, generally twelve months. The risks against which the hulls of ships are insured by the full (with average) policy, are the perils of the seas, and similar perils covered by the traditional marine policy in common use, including sacrifices made in "General Average" (q.v.). It is also customary to add, by the use of clauses, in surance against liability for damage done by collision and certain other liabilities and perils. It is also customary in Great Britain to exclude war risks from the marine policy, these being insured separately, or covered on a mutual basis by associations formed for that purpose amongst shipowners. During the World War the amount to be covered on both ships and cargo against war risks was so great that the British Government instituted a war risk bureau which functioned simultaneously with the open market, and this system of a national war risk insurance office was also adopted by other countries, including some of those which re mained neutral. So far as marine perils are concerned, the hulls of ships are also insured under policies which do not include the risk of particular average, and also under policies which cover total loss, general average (other than damage to ships), salvage charges and collision liabilities, these being known as "free of damage absolutely" insurances. Another form of insurance is the "free of particular average" policy which does not pay particular average unless the vessel has been stranded, sunk, on fire, or in col lision. "Particular average" is partial loss caused by a peril insured against, and which is not general average. In connection with hull insurances, shipowners also insure their freight, their insurance premiums, and an indefinite interest known as "disbursements," the amount of which represents the financial loss over and above the actual value of the vessel which a shipowner incurs when his vessel is totally lost.
Goods and merchandise, valuables, securities and other concrete transportable interests are insured under the traditional marine form of policy, risks being added by means of clauses, of which the principal are the "with average" and "free of particular aver age" clauses of the Institute of London Underwriters. The "with
average" clauses cover practically every fortuitous accident which may occur during transit, while the "free of particular average" clauses cover total loss, general average and certain other liabili ties, but do not cover particular average unless the vessel has been stranded, sunk, on fire or in collision. These clauses also extend the risk of sea transit to cover the goods from the time they leave the warehouse at the port of shipment, until delivery at the con signee's or other warehouse at the destination named in the policy, or until the expiry of fifteen days from midnight of the day on which the discharge of goods from the overseas vessel is com pleted, whichever may first occur. Extension of the risk to 3o days from the completion of discharge is made when the destination to which the goods are insured is without the limits of the port of discharge.
In Great Britain, marine insurance was the sub ject of sporadic legislation up to the end of the 19th century. In the reign of Elizabeth an Act was passed (43 Eliz. c. 12) setting up a Court of Policies of Insurance to arbitrate in cases of dis pute. The Act of 1720 incorporating the Royal Exchange As surance and London Assurance, has already been mentioned. In 1745 an Act (19 Geo. 2. c. 37) prohibited the issue of wagering policies, and also policies of re-insurance, and although this Act was not finally repealed until the passing of the Act of 1906, its provisions with regard to re-insurance became obsolete. From the passing of this Act, until the Act of 1906 there appears to have been no legislation of importance dealing with marine insurance, other than certain finance acts dealing with policy duties, but dur ing that period case law, mainly owing to the efforts of Lord Mans field, had created precedents on practically every point likely to be raised on marine policy, and the Act of 1906 (6 Edw. 7 c. 41) was largely a codification of this case law, although certain provisions with regard to the prohibition of gambling policies were embodied in it. These provisions were amplified by the Marine Insurance (Gambling Policies) Act of 1909.