Effect of under insurance.
Enforcement of return.
Return by sarcement.
Return for failure of consideration.
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(2) If any insurer pays more than his proportion of the loss, he is entitled to maintain an action 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.
#1, 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.
Return of premium.
82. Where the premium or a proportionate part thereof is, by this Ordinance, declared to be returnable-
(0) it 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.
64. (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 that there has been no fraud or illegality on the part of the assured; but if the risk is not apportionable, and has once attached, the premium is not returnable;
(b) where the subject matter insured, or part thereof, has never been imperilted, the premium, or, as the case may be, a pro- portionate 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 contract is concluded, the premium is not returnable unless, at such time, the insurer knew of the safe arrival;
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(c) where the assured has no insurable interest throughout the currency of the risk, the premium is returnable, provided that this rule does not apply to a policy effected by way of gaming or 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 proportionale 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.
Mutual insurance,
in case of
85. (1) Where two or more persons mutually agree to insure each Modification other against marine losses there is said to be a mutual insurance. of Ordinance
(2) The provisions of this Ordinance relating to the premium do mutual not apply to mutual insurance, but a guarantee, or such other arrange- ment as may be agreed upon, may be substituted for the premium.
(3) The provisions of this Ordinance, in so far as they may be modified by the agreement of the parties, may in the case of mutual insurance be modified by the terms of the policies issued by the associa tion, or by the rules and regulations of the association.
(4) Subject to the exceptions mentioned in this section, the provi- sions of this Ordinance apply to a mutual insurance.
Supplemental.
insurance,
86. Where a contract of marine insurance is in good faith effected Ratification
by one person on behalf of another, the person on whose behalf it is by assured. effected may ratify the contract even after he is aware of a loss.
87. (1) Where any right, duty, or liability would arise under a Implied contract of marine insurance by implication of law, it may be negatived obligations
varied by or varied by express agreement, or by usage, if the usage be such as to Ogreement bind both parties to the contract.
(2) The provisions of this section extend to any right, duty, or liability declared by this Ordinance which may be lawfully modified by agreement.
or usage.