1961-HKRS28-8-28_Part01 — Page 39

Disclosure by

Agent

effecting

insurance.

Representa-

tions pending

negalition

of contract.

When con-

tract &

deemed to

6

(d) any circumstance which it is superfluous to disclose by reason

of any express or implied warranty.

(4) Whether any particular circumstance, which is not disclosed. be material or not is, in each case, a question of fact.

(5) The term "circumstance" includes any communication made lo, or information received by, the assured.

19. Subject to the provisions of the preceding section of this Ordinance as to circumstances which need not be disclosed, where an insurance is effected for the assured by an agent, the agent must disclose to the insurer—

(a) every material circumstance which is known to himself and an agent to insure is deemed to know every circumstance which in the ordinary course of business ought to be koowo by, or to have been communicated to, bùm; and

(6) every material circumstance which the assured is bound to disclose, unless it comes to his knowledge too late to com- municate it to the agent.

20. (1) Every material representation made by the assured or his agent to the insurer during the negotiations for the contract, and before the contract is concluded, must be true. If it be untrue the insurer muy avoid the contract.

(2) A representation is material which would influence the judg- ment of a prudent insurer in fixing the premium, or determining whether he will take the risk.

(3) A representation may be either a representation as to a matter of fact, or as to a matter of expectation or belief.

(4) A representation as to a matter of fact is true, if it be sub- stantially correct, that is to say, if the difference between what is represented and what is actually correct would not be considered material by a prudent insurer.

(5) A representation as to a matter of expectation or belief is true if it be made in good faith.

(6) A representation may be withdrawn or corrected before the contract is concluded.

(7) Whether a particular representation be material or not is, in cach case, a question of fact.

21. A contract of marine insurance is deemed to be concluded when the proposal of the assured is accepted by the insurer, whether be concluded. the policy be then issued or not; and, for the purpose of showing when the proposal was accepted, reference may be made to the slip or covering note or other customary memorandum of the contract.

The policy.

22. Subject to the provisions of any Ordinance, a contract of Contract marine insurance is inadmissible in evidence unless it is embodied in must be

embodied a marine policy in accordance with this Ordinance. The policy may in policy. be executed and issued either at the time when the contract is con- cluded, or afterwards.

23. A marine policy must specify the name of the assured, or of what policy some person who effects the insurance on his behalf.

must specify.

24. (1) A marine policy must be signed by or on behalf of the Signature of insurer, provided that in the case of a corporation the corporate seal insurer. may be sufficient, but nothing in this section shall be construed as requiring the subscription of a corporation to be under seal.

(2) Where a policy is subscribed by or on behalf of two or more insurers, each subscription, unless the contrary be expressed, constitutes a distinct contract with the assured.

25. Where the contract is to insure the subject matter “at and Voyages and from", or from one place to another or others, the policy is called a time policies. "voyage policy", and where the contract is to insure the subject matter for a definite period of time the policy is called a "time policy”. A contract for both voyage and time may be included in the same policy.

26. (1) The subject matter insured must be designated in a Designation marine policy with reasonable certainty.

of subject matter,

(2) The nature and extent of the interest of the assured in the subject matter insured need not be specified in the policy.

(3) Where the policy designates the subject matter insured in general terms, it shall be construed to apply to the interest intended by the assured to be covered.

(4) In the application of this section regard shall be had to any usage regulating the designation of the subject matter insured.

27. (1) A policy may be either valued or unvalued.

(2) A valued policy is a policy which specifies the agreed value of the subject matter insured.

(3) Subject to the provisions of this Ordinance, and in the absence of fraud, the value fixed by the policy is, as between the insurer and assured, conclusive of the insurable value of the subject intended to be insured, whether the loss be total or partial.

(4) Unless the policy otherwise provides, the value fixed by the policy is not conclusive for the purpose of determining whether there has been a constructive total loss.

Velvet policy.