Battoury.
Master's and
carmen's Wapes,
Advance freight.
Obarges of insurance.
Quantum of interest,
Assignment of interest.
Measure of
insurable
value.
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10. The lender of money on bottomry or respondentia has an insurable interest in respect of the loan.
11. The master or any member of the crew of a ship has an insurable interest in respect of his wages.
12. In the case of advance freight, the person advancing the freight has an insurable interest, in so far as such freight is not repay- able in case of loss.
13. The assured has an insurable interest in the charges of any insurance which he may effect.
14. (1) Where the subject matter insured is mortgaged, the mortgagor has an insurable interest in the full value thereof, and the mortgagee has an insurable interest in respect of any sum due or to become due under the mortgage.
(2) A mortgagee, consignee, or other person having an interest in the subject matter insured may insure on behalf and for the benefit of other persons interested as well as for his own benefit.
(3) The owner of insurable property has an insurable interest in respect of the full value thereof, notwithstanding that some third person may have agreed, or be liable, to indemnify him in case of loss.
15. Where the assured assigns or otherwise parts with his interest in the subject matter insured, be does not thereby transfer to the assignee his rights under the contract of insurance, unless there be an express of implied agreement with the assignee to that effect.
But the provisions of this section do not affect a transmission of interest by operation of law.
Insurable value.
16. Subject to any express provision or valuation in the policy. the insurable value of the subject matter insured must be ascertained as follows.
(1) in insurance on ship, the insurable value is the value, at the commencement of the risk, of the ship, including her outfit,
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provisions and stores for the officers and crew, money advanced for seamen's wages, and other disbursements (if any) incurred to make the ship fit for the voyage or adventure contemplated by the policy, plus the charges of insurance upon the whole:
The insurable value, in the case of a steamship, includes also the machinery, boilers, and coals and engine stores if owned by the assured, and, in the case of a ship engaged in a special trade, the ordinary fittings requisite for that trade;
(2) in insurance on freight, whether paid in advance or otherwise, the insurable value is the gross amount of the freight at the risk of the assured, plus the charges of insurance;
(3) in insurance on goods or merchandise, the insurable value is the prime cost of the property insured, plus the expenses of and incidental to shipping and the charges of insurance upon the whole;
(4) in insurance on any other subject matter, the insurable valục is the amount at the risk of the assured when the policy attaches, plus the charges of insurance,
Disclosure and representations.
uberrimae
17. A contract of marine insurance is a contract based upon the Insurance is utmost good faith, and, if the utmost good faith be not observed by Adel. either party, the contract may be avoided by the other party.
18. (1) Subject to the provisions of this section, the assured must Disclosure disclose to the insurer, before the contract is concluded, every material by assured. circumstance which is known to the assured, and the assured is deemned
to know every circumstance which, in the ordinary course of business, ought to be known by him. If the assured fails to make such dis- closure, the insurer may avoid the contract.
(2) Every circumstance is material which would influence the judgment of a prudent insurer in fixing the premium, or determining whether he will take the risk.
(3) In the absence of inquiry the following circumstances need not be disclosed. namely-
(a) any circumstance which diminishes the risk:
(b) any circumstance which is known or presumed to be known to the insurer. The insurer is presumed to know matters of common notoriety or knowledge, and matters which an insurer in the ordinary course of his business, as such, ought to know; (c) any circumstance as to which information is waived by the
insurer: