The period of the Civil NVar subjected the marine companies to a severe strain, and several of them succumbed. Since that time the condi tion of marine underwriting has relleeted the con dition of the shipping industry of the country. The great growth of the busine;s has been seen, not in the insurance of risks on the high seas, but in the insurance of risks on inland waters. The headquarters for the insurance of shipping on the lakes is Chicago. The business is espe ciali on account of the limited area over which operations extend, and a conse quent great thietnation in loss-rate.
The general principles on which marine in surance is based are not different from those underlying other forms of insurance. but in practice the former presents a number of peculiar features.
THE Pout's'. The munition form of marine pol icy is the 'voyage' policy, that is, a be in force for a voyage from one specified port to another. Occasionally. however, a ship is in sured under a 'time' policy, which is to be in force for a specified time, usually a year. The chief practical distinction between the two is that with a voyage policy there is always a war ranty. express or implied. that the ship is sea worthy at the beginning of the voyage, while with a time policy no sueh warranty is implied.
An policy is one which provides that in ease of total loss the amount of the indemnity shall be determined by ascertaining the amount of loss aetually suffered. It is incumbent upon the insured to prove the value of the destroyed properly. A 'valued' policy. on the other hand, provides that in ease of total loss the amount stated in the policy shall be regarded as the value of the insured property and paid as in demnity. Valued policies are more frequently issued on the ship. while the cargo is more com mially covered by an open policy. The use of the valued policy has undoubtedly tended to in crease the n1111111111 of over-insuranee and delib erate destruction of vessels. This practice is
especially easy under the system of individual underwriting prevailing at Lloyds. since the un derwriter frequently knows little or nothing about the ship he is insuring beyond what is staled in the slip.
Ohstla•rs. The objects most commonly insured under a marine policy are ship, en rgo. and freights. Sometimes other objects are covered, sueli as the expected profits of the voyage. or. more frequently. the liability for damages on ae ennuil of eollision. The insurance of freight is an illustration of a peculiar feature of marine insurance. In all other forms of insurance of property the amount of indemnity that can be recovered in case of loss is determined by the value of the lu•operty destroyed, damnum c•mcr yens. In marine insuranee it is possible to insure an expected gain and to obtain indemnity if the occurrence of any of the events covered by the policy makes it impossible to realize the gain, lueruni aessuns.
lixN6ERs. .\ marine policy covers a far greater number and variety of dangers than any other form of policy issued. Besides the more char acteristic perils of the seas, such as wind and wave, tire, collision, stranding, jettison. and the like, the policy covers three distinct kinds of danger—war risks, including detention as well as capture or destruction: pirates, rovers, and thieves: and barratry, or illegal acts of captain or crew. As to the losses caused by the perils of the sea, they must be due to extraordinary action of wind and wave, or to some other un usual cause. The losses caused by ordinary forces are known as wear and tear, and are not covered by the insurance. The distinction be tween the two kinds of losses has been the sub ject of much litigation. and the present condi tion of the law of the subject is precise but complex. :Modern policies cover some further kinds of loss, especially liability for damages on account of collision.