Marine Insurance

warranty, ship, warranted, implied, policy, seaworthy and neutral

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Warranted not to enter or sail from any port in British North America between 1st September and 3Ist March, both days inclusive.

Warranted not to be in the Baltic or White Sea between 1st October and Slst March, both days inclusive.

Warranted not to sail with over net register tonnage of grain from any port in North America between 1st October and 31st March, both days inclusive.

Warranted not to sail with over net register tonnage of ore, iron, or phos phate, to or from any port in North America between 1st September and 81st March, both days inclusive.

Warranted no East of Singapore (Java excepted).

Warranted no Bilbao.

Warranted no Straits of Magellan.

A warranty may be express or implied, the latter being those that the 66 English law insists on finding present in every marine venture before it will enforce insurances made." No special form of words is necessary to con stitute an express warranty, or to afford material from which an intention to warrant may be inferred; the word " warrant" need not appear for example. But the wananty must be included in, or Ivritten upon the face of the policy, whether in its body or margin or at the foot, or contained in some document incorporated with the policy by explicit reference. An express warranty does not exclude an implied warranty, unless inconsistent with it. Where insurable property, whether ship or goods, is expressly warranted "neutral," there is an implied condition that the property will have a neutral character at the commencement of the risk, and that, so far as the assured can control the matter, its neutral character is to be preserved during the risk. And if 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 not falsify or suppress her papers, or use simulated papers. If a loss occurs through the breach of this con dition the linden% Hier has the right to avoid the contract. There is never an implied warranty as to the nationality of a ship, or that her nationality shall not he changed during the risk. Consequently, unless there is an express warranty of neutrality, and England is herself neutral, valid insur ances may be efff.eted in this country to cover such ventures as blockade

running and smuggling contraband of war. Where the subject matter insured is warranted " well" or " in good safety " on a particular day, it is sufficient if it is safe at any time during that day.

A warranty that at the commencement of the voyage the ship is sea worthy for the purpose of the particular adventure insured is naturally one of the most important that the law ale ays implies. This warranty is only implied, however, in voyage policies, and not in time policies. If the policy attaches while the ship is in port the warranty extends to her being reason ably fit to encounter the ordinary perils of the pert. Where the policy contemplates a voyage in different stages, during which the subject-matter insured will be exposed to different degrees or kinds of peril of such a nature that the ship will require different kinds of preparation or equipment, the ship must be seaworthy, in respect of such preparation or equipment, at the commencement of each stage; and it is sufficient if at the commencement of each stage she is seaworthy for the purpose of that stage. To be seaworthy is to be reasonably lit in all respects to encounter the ordinary perils of the seas of the adventure insured. The law presumes that every ship that proceeds on a voyage is seaworthy, and this presumption is certainly a reason able one in view of the care now taken by the authorities that no ship shall proceed to sea unless structurally seaANortliv, sufficiently provisioned, and adequately officered and manned. It has already been stated that in a time policy there is no implied warranty that the ship is seaworthy ; but where, with the privity of the assured, the ship is sent to sea in an unseaworthy state, the underwriter is not liable for any loss attributable to unseaworthiness. In a policy on goods or other movables there is no implied warranty that the goods or movables are seaworthy. But in a voyage policy there is an implied warranty of seaworthiness of the ship, and that the ship is reasonably fit to carry the goods. But in every case a warranty is implied that the adventure Insured is a lawful one, and that, so far as the assured can control the matter, the adventure will be carried out in a lawful manner.

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