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Marine Insurance Policy

time, insured, ship, voyage, stamp, sea, act, underwriters and stamped

MARINE INSURANCE POLICY. A policy of marine insurance is usually effected with insurers, called " underwriters." The term " underwriter " is applied because each person who acts as an insurer signs his name at the foot of the policy and states the amount for which he is to be liable. The ship or the goods may he insured either for a certain voyage or during some period of time, and the underwriters by the contract agree to indemnify the insurer against loss in accordance with the terms of the policy.

A person wishing to insure, usually employs an insurance broker to arrange the terms of the policy with the underwriters.

The person insured must have an insurable interest in the ship or its cargo, otherwise the contract is not legally binding.

There are several kinds of marine policies, the principal being : A " valued policy," where the value of the ship or subject insured is stated in the policy. Ships and freights are usually insured under a valued policy.

An " open policy," where the value of the subject insured is not stated in the policy. When a loss occurs the value ' has to be proved. Goods are usually included in an open policy. The de scription in the policy should agree with that in the bill of lading.

There are also :—A " Time Policy," that is a policy for a fixed time, a " Voyage l'olicy," that is for a particular voyage, a " Floating F olicy," which insures the subject matter in whatever ship it may be ; and other varieties.

The underwriters are liable for the full amount of the insurance in the event of the ship being totally lost, but in the case of a partial loss the underwriters are usually liable only for two-thirds, the remaining one-third of the loss falling upon the owner of the ship.

An insurance certificate is sometimes attached to a bill, and is a declaration by an insurance company that the goods are insured under a policy which also covers other goods.

By the Stamp Act, 1891, the stamp duties I are :— (1) Where the premium or con sideration does not exceed the rate of 2s. 6d. per centum of the sum insured . .

(2) In any other case — (a) For or upon any voyage— In respect of every full sum of £100, and also any frac tional part of £100 thereby insured (Finance Act, 1908) (b) For time— In respect of every full sum of 1100, and also any frac tional part of L100 thereby insured— Where the insurance shall be made for any time not exceeding six months . . . .

Where the insurance shall be made for any time exceeding six months and not ex ceeding twelve months A policy of sea insurance is not valid unless it specifies the particular risk, the names of the subscribers or underwriters, and the sums insured, and is made for a period not ex ceeding twelve months (Section 93, s.s. 3).

An insurance policy for a voyage and also for time, or to cover any time beyond thirty days after the ship's arrival, is to be charged with duty as a policy for a voyage and also for time (Section 94).

When a banker receives from abroad a bill of exchange with a policy of insurance or an insurance certificate attached, he must see that the policy or the certificate is stamped within ten days of its arrival in this country. The certificate does not require stamping if there is a note upon it that the original policy is stamped.

By the Finance Act, 1901 : " Section 11. (1) Notwithstanding any thing contained in the Stamp Act, 1891, a policy of sea insurance made for time may contain a continuation clause as defined in this Section, and such a policy shall not be invalid on the ground only that by reason of the continuation clause it may become available for a period exceeding twelve months.

" (2) There shall be charged on a policy of sea insurance containing such a continuation clause a stamp duty of sixpence in addition to the stamp duty which is otherwise chargeable on the policy.

" (3) If the risk covered by the continua tion clause attaches and a new policy is not issued covering the risk, the continuation clause shall be deemed to be a new and separate contract of sea insurance expressed in the policy in which it is contained, but not covered by the stamp thereon, and the policy shall be stamped in re spect of that contract accordingly,but may be so stamped Nvithout penalty at any time not exceeding thirty days after the risk has so attached.

" (4) For the purpose of this Section, the expression ' continuation clause ' means an agreement to the following or the like effect, namely, that in the event of the ship being at sea or the voyage otherwise not com pleted on the expiration of the policy, the subject-matter of the insurance shall be held covered until the arrival of the ship, or for a reasonable time thereafter not exceeding thirty days." By the Revenue Act, 1903 : " Section 8. A policy of insurance made or purporting to be made upon or to cover any ship or vessel, or the machinery or fittings belonging to the ship or vessel whilst under construction, or repair, or on trial, ,shall be sufficiently stamped for the purposes of the Stamp Act, 1891, and the Acts amending that Act, if stamped as a policy of sea insurance made for a voyage and though made for a time exceeding twelve months, shall not be deemed to be a policy of sea insurance made for time." (See MUTUAL INSURANCE, SHIP-M ORTGAGE.) MARK. (See FOREIGN MONEYS-GER MANY.)