Marine Insurance Unit 5

{\rtf \ansi\ansicpg1252\deff0\viewkind1\margt750\margb620
{\fonttbl{\f11\fswiss\fcharset0 Arial Narrow;}{\f10\fswiss\fcharset0 Arial;}{\f1

2\fswiss\fcharset0 Franklin Gothic;}{\f12\fswiss\fcharset0 Verdana;}{\f20\froman
\fcharset0 Times New Roman;}{\f21\froman\fcharset0 Garamond;}{\f22\froman\fchars
et0 Palatino Linotype;}{\f30\fmodern\fcharset0 Courier New;}{\f31\fmodern\fchars
et0 Lucida Console;}{\f40\ftech\fcharset2 Symbol;}{\f50\fscript\fcharset0 Minion
;}{\f60 Haettenschweiler;}}
\pgwsxn12240\pghsxn15840
{\phpg\posx0\pvpg\posy0\absw12240\absh15840 \overlay
{\*\shppict {\pict\jpegblip\picw612 \pich792
\picwgoal12240 \pichgoal15840
\picscalex135 \picscaley135
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
838485868788898a92939495969798999aa2a3a4a5a6a7a8a9aab2b3b4b5b6b7b8b9bac2c3c4c5c6
c7c8c9cad2d3d4d5d6d7d8d9dae1e2e3e4e5e6e7e8e9eaf1f2f3f4f5f6f7f8f9faffc4001f010003
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
a7a8a9aab2b3b4b5b6b7b8b9bac2c3c4c5c6c7c8c9cad2d3d4d5d6d7d8d9dae2e3e4e5e6e7e8e9ea
f2f3f4f5f6f7f8f9faffda000c03010002110311003f00fefe28a28a0028a28a0028a28a0028a28a
0028a28a0028a28a0028a28a0028a28a0028a28a0028a28a0028a28a0028a28a0028a28a0028a28a
0028a28a0028a28a0028a28a0028a28a0028a28a0028a28a0028a2be20f167fc13e7e0378d3c55e2
6f18eb1e3efdb7ecf57f16788359f136a967e13ff829b7fc1493c05e15b5d475dd46e754beb6f0cf
817c0bfb57f873c13e0bf0fc173752c5a3784fc1de1ed0bc2be1cd396db47f0f68da5e9167676300
07dbf457c01ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f46451ff000ed3fd9d7fe8a37e
dfff00f8b62ff82a6fff004645007dff00457c01ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff
0046451ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f4645007dff457c01ff0ed3fd9d7fe
8a37edff00ff008b62ff0082a6ff00f46451ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff0046
45007dff00457c01ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff0046451ff0ed3fd9d7fe8a37
edff00ff008b62ff0082a6ff00f4645007dff457c01ff0ed3fd9d7fe8a37edff00ff008b62ff0082
a6ff00f46451ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff004645007dff00457c01ff000ed3
fd9d7fe8a37edfff00f8b62ff82a6fff0046451ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff
00f4645007dff457c01ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f46451ff000ed3fd9d
7fe8a37edfff00f8b62ff82a6fff004645007dff00457c01ff000ed3fd9d7fe8a37edfff00f8b62f
f82a6fff0046451ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f4645007dff457c01ff0ed
3fd9d7fe8a37edff00ff008b62ff0082a6ff00f46451ff000ed3fd9d7fe8a37edfff00f8b62ff82a
6fff004645007dff00457c01ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff0046451ff0ed3fd9
d7fe8a37edff00ff008b62ff0082a6ff00f4645007dff457c01ff0ed3fd9d7fe8a37edff00ff008b
62ff0082a6ff00f46451ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff004645007dff00457c01
ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff0046451ff0ed3fd9d7fe8a37edff00ff008b62ff
0082a6ff00f4645007dff457c01ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f46451ff00
0ed3fd9d7fe8a37edfff00f8b62ff82a6fff004645007dff00457c01ff000ed3fd9d7fe8a37edfff
00f8b62ff82a6fff0046451ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f4645007dff457
c01ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f46451ff000ed3fd9d7fe8a37edfff00f8
b62ff82a6fff004645007dff00457c01ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff0046451f
f0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f4645007dff457c01ff0ed3fd9d7fe8a37edff
00ff008b62ff0082a6ff00f46451ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff004645007dff
00457c01ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff0046451ff0ed3fd9d7fe8a37edff00ff
008b62ff0082a6ff00f4645007dff457c01ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f4
6451ff000ed3fd9d7fe8a37edfff00f8b62ff82a6fff004645007dff00457c01ff000ed3fd9d7fe8
a37edfff00f8b62ff82a6fff0046451ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f46450
07dff457c01ff0ed3fd9d7fe8a37edff00ff008b62ff0082a6ff00f46451ff000ed3fd9d7fe8a37e
62ff0082a6ff00f46457d3ff00053e07782fe00f85750f0778175af8c1aee91a97882ebc4d7179f1
aff685f8fbfb4a78aa3d46f34ed2b4b9adb4ff001d7ed19f12fe2a78db49f0fa5b68d672daf84f4b
f10d9f856c7519b55d62c746b7d5f5dd72fb5100f60a28a2800a28a2800a28a2800a28a2800a28a2
800a28a2800a28a2800a28a2800a28a2800a28a2800a28a2800a28a2800a28a2800a28a2800a28a2
800a28a2800a28a2800a28a2803fffd9
}}\par}{\colortbl;\red0\green0\blue0;\red0\green0\blue64;\red0\green0\blue128;\r
ed0\green0\blue192;\red0\green0\blue255;\red0\green64\blue0;\red0\green64\blue64
;\red0\green64\blue128;\red0\green64\blue192;\red0\green64\blue255;\red0\green12
8\blue0;\red0\green128\blue64;\red0\green128\blue128;\red0\green128\blue192;\red
0\green128\blue255;\red0\green192\blue0;\red0\green192\blue64;\red0\green192\blu
e128;\red0\green192\blue192;\red0\green192\blue255;\red0\green255\blue0;\red0\gr
een255\blue64;\red0\green255\blue128;\red0\green255\blue192;\red0\green255\blue2
55;\red64\green0\blue0;\red64\green0\blue64;\red64\green0\blue128;\red64\green0\
blue192;\red64\green0\blue255;\red64\green64\blue0;\red64\green64\blue64;\red64\
green64\blue128;\red64\green64\blue192;\red64\green64\blue255;\red64\green128\bl
ue0;\red64\green128\blue64;\red64\green128\blue128;\red64\green128\blue192;\red6
4\green128\blue255;\red64\green192\blue0;\red64\green192\blue64;\red64\green192\
blue128;\red64\green192\blue192;\red64\green192\blue255;\red64\green255\blue0;\r
ed64\green255\blue64;\red64\green255\blue128;\red64\green255\blue192;\red64\gree
n255\blue255;\red128\green0\blue0;\red128\green0\blue64;\red128\green0\blue128;\
red128\green0\blue192;\red128\green0\blue255;\red128\green64\blue0;\red128\green
64\blue64;\red128\green64\blue128;\red128\green64\blue192;\red128\green64\blue25
5;\red128\green128\blue0;\red128\green128\blue64;\red128\green128\blue128;\red12
8\green128\blue192;\red128\green128\blue255;\red128\green192\blue0;\red128\green
192\blue64;\red128\green192\blue128;\red128\green192\blue192;\red128\green192\bl
ue255;\red128\green255\blue0;\red128\green255\blue64;\red128\green255\blue128;\r
ed128\green255\blue192;\red128\green255\blue255;\red192\green0\blue0;\red192\gre
en0\blue64;\red192\green0\blue128;\red192\green0\blue192;\red192\green0\blue255;
\red192\green64\blue0;\red192\green64\blue64;\red192\green64\blue128;\red192\gre
en64\blue192;\red192\green64\blue255;\red192\green128\blue0;\red192\green128\blu
e64;\red192\green128\blue128;\red192\green128\blue192;\red192\green128\blue255;\
red192\green192\blue0;\red192\green192\blue64;\red192\green192\blue128;\red192\g
reen192\blue192;\red192\green192\blue255;\red192\green255\blue0;\red192\green255
\blue64;\red192\green255\blue128;\red192\green255\blue192;\red192\green255\blue2
55;\red255\green0\blue0;\red255\green0\blue64;\red255\green0\blue128;\red255\gre
en0\blue192;\red255\green0\blue255;\red255\green64\blue0;\red255\green64\blue64;
\red255\green64\blue128;\red255\green64\blue192;\red255\green64\blue255;\red255\
green128\blue0;\red255\green128\blue64;\red255\green128\blue128;\red255\green128
\blue192;\red255\green128\blue255;\red255\green192\blue0;\red255\green192\blue64
;\red255\green192\blue128;\red255\green192\blue192;\red255\green192\blue255;\red
255\green255\blue0;\red255\green255\blue64;\red255\green255\blue128;\red255\gree
n255\blue192;\red255\green255\blue255;}
{\phpg\posx4540\pvpg\posy1170\absw3289\absh1751 \b \f20 \fs21 \cf0 \fi1547 \b \f
20 \fs21 \cf0 i
\par}{\phpg\posx4540\pvpg\posy1170\absw3289\absh1751 \sl-325 \par\b \f20 \fs21 \
cf0 {\b0 \fs28 MARINE}{\b0 \fs28 INSURANCE }
cf0 \fi886 {\b0 UBC}{\b0 Law}{\b0 332 }
cf0 \fi511 {\b0 Christopher}{\b0 J.}{\b0 Giaschi }\par
}
{\phpg\posx1136\pvpg\posy4068\absw10407\absh9252 \f20 \fs21 \cf0 \fi4471 \f20 \f
s21 \cf0 OUTLINE
\par}{\phpg\posx1136\pvpg\posy4068\absw10407\absh9252 \sl-317 \par\f20 \fs21 \cf
0 {\b \f10 \fs28 Table}{\b \f10 \fs28 of}{\b \f10 \fs28 Contents }
0 \fi60 1 Introduction..........................................................
................................................................................
..1
0 \fi342 1.1 History............................................................
................................................................................
1
0 \fi342 1.2 Governing Law/Legislation..........................................
..................................................................1
0 \fi626 1.2.1 Federal Marine Insurance Act.....................................
............................................................1
0 \fi626 1.2.2 Provincial Insurance Acts........................................
............................................................... 1
0 \fi908 1.2.2.1 Ordon v Grail..................................................
................................................................ 2
0 \fi342 1.3 Nature and Scope of Marine Insurance...............................
........................................................... 2
0 \fi626 1.3.1 s.6 MIA..........................................................
.........................................................................2
0 \fi626 1.3.2 s.2(1) "Marine Adventure"........................................
............................................................. 2
0 \fi626 1.3.3 s.2(1) "Maritime Perils".........................................
.................................................................3
0 \fi60 2 Types of Marine Insurance.............................................
........................................................................3
0 \fi342 2.1 Hull and Machinery.................................................
.......................................................................3
0 \fi342 2.2 Cargo..............................................................
................................................................................
3
0 \fi342 2.3 P&I Cover..........................................................
.............................................................................3
0 \fi342 2.4 Other Third Party Liability Coverage...............................
..............................................................3
0 \fi342 2.5 Specified Perils v All Risks.......................................
.....................................................................3
0 \fi60 3 Parties...............................................................
................................................................................
......4 \par
}
\sect\sectd\pard\plain
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}}\par}{\phpg\posx1196\pvpg\posy1170\absw10283\absh11698 \b \f20 \fs21 \cf0 \fi4
858 \b \f20 \fs21 \cf0 ii
\par}{\phpg\posx1196\pvpg\posy1170\absw10283\absh11698 \sl-290 \par\b \f20 \fs21
\cf0 \fi282 {\b0 3.1}{\b0 Assured.............................................
................................................................................
..............4 }
\cf0 \fi282 {\b0 3.2}{\b0 Additional}{\b0 Assureds...........................
................................................................................
............}{\b0 4 }
\cf0 \fi282 {\b0 3.3}{\b0 Underwriters........................................
................................................................................
...........4 }
\cf0 \fi566 {\b0 3.3.1}{\b0 Underwriting}{\b0 Agents.........................
................................................................................
......4 }
\cf0 \fi566 {\b0 3.3.2}{\b0 P&I}{\b0 Clubs...................................
................................................................................
............}{\b0 4 }
\cf0 \fi566 {\b0 3.3.3}{\b0 Insurance}{\b0 Companies.........................
................................................................................
.....4 }
\cf0 \fi282 {\b0 3.4}{\b0 Brokers.............................................
................................................................................
..............}{\b0 5 }
\cf0 {\b0 4}{\b0 The}{\b0 Marine}{\b0 Insurance}{\b0 Contract..............
................................................................................
................5 }
\cf0 \fi282 {\b0 4.1}{\b0 Requirements........................................
................................................................................
..........5 }
\cf0 \fi566 {\b0 4.1.1}{\b0 ss.25-28}{\b0 MIA................................
................................................................................
..........}{\b0 5 }
\cf0 \fi282 {\b0 4.2}{\b0 Time}{\b0 and}{\b0 Voyage}{\b0 Policies}{\b0 (s.
}{\b0 29}{\b0 MIA)............................................................
..............................6 }
\cf0 \fi566 {\b0 4.2.1}{\b0 Special}{\b0 Rules}{\b0 For}{\b0 Voyage}{\b0 P
olicies}{\b0 ss.40-46}{\b0 MIA................................................
..................6 }
\cf0 \fi282 {\b0 4.3}{\b0 Valued}{\b0 and}{\b0 Unvalued}{\b0 Policies}{\b0
(s.30}{\b0 MIA)...............................................................
......................7 }
\cf0 \fi282 {\b0 4.4}{\b0 Floating}{\b0 Policies}{\b0 (s.31}{\b0 MIA)......
................................................................................
....................}{\b0 7 }
\cf0 \fi282 {\b0 4.5}{\b0 Construction}{\b0 of}{\b0 the}{\b0 Contract......
................................................................................
....................}{\b0 7 }
\cf0 \fi566 {\b0 4.5.1}{\b0 Intention}{\b0 of}{\b0 the}{\b0 Parties........
................................................................................
....................7 }
\cf0 \fi566 {\b0 4.5.2}{\b0 Narrow}{\b0 Construction}{\b0 of}{\b0 Exception
s...............................................................................
........}{\b0 8 }
\cf0 \fi566 {\b0 4.5.3}{\b0 Contra}{\b0 Proferentem..........................
................................................................................
.......8 }
\cf0 \fi282 {\b0 4.6}{\b0 The}{\b0 Premium}{\b0 ss.}{\b0 47-50}{\b0 MIA...
................................................................................
.......................8 }
\cf0 \fi566 {\b0 4.6.1}{\b0 Amount}{\b0 of}{\b0 Premium}{\b0 s.47}{\b0 MI
A...............................................................................
...............8 }
\cf0 \fi566 {\b0 4.6.2}{\b0 Obligation}{\b0 to}{\b0 Pay}{\b0 ss.48}{\b0 &}
{\b0 49}{\b0 MIA..............................................................
...........................}{\b0 8 }
\cf0 \fi566 {\b0 4.6.3}{\b0 Return}{\b0 of}{\b0 Premium}{\b0 ss.82-85}{\b0
MIA............................................................................
..............}{\b0 8 }
\cf0 \fi566 {\b0 4.6.4}{\b0 If}{\b0 Insurer}{\b0 Fails}{\b0 to}{\b0 Return
}{\b0 Premium..................................................................
.....................10 }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
824 \b \f20 \fs21 \cf0 iii
\cf0 {\b0 5}{\b0 Utmost}{\b0 Good}{\b0 Faith,}{\b0 Misrepresentation}{\b0
and}{\b0 Disclosure............................................................
...........}{\b0 10 }
\cf0 \fi282 {\b0 5.1}{\b0 Utmost}{\b0 Good}{\b0 Faith}{\b0 s.20}{\b0 MIA..
................................................................................
.....................10 }
\cf0 \fi282 {\b0 5.2}{\b0 Disclosure}{\b0 s.21}{\b0 MIA}{\b0 "material}{\b0
circumstances"................................................................
...........}{\b0 10 }
\cf0 \fi282 {\b0 5.3}{\b0 Misrepresentation}{\b0 s.}{\b0 22}{\b0 MIA.......
................................................................................
.................11 }
\cf0 \fi282 {\b0 5.4}{\b0 Examples}{\b0 of}{\b0 Material}{\b0 Facts........
................................................................................
..................12 }
\cf0 {\b0 6}{\b0 Insurable}{\b0 interest}{\b0 ss.7-19}{\b0 MIA.............
................................................................................
................12 }
\cf0 {\b0 7}{\b0 Perils.......................................................
................................................................................
..............13 }
\cf0 \fi282 {\b0 7.1}{\b0 Insured}{\b0 Perils................................
................................................................................
................13 }
\cf0 \fi566 {\b0 7.1.1}{\b0 Perils}{\b0 of}{\b0 the}{\b0 Sea}{\b0 ........
................................................................................
...........................}{\b0 13 }
\cf0 \fi566 {\b0 7.1.2}{\b0 Fire..............................................
................................................................................
..........14 }
\cf0 \fi566 {\b0 7.1.3}{\b0 Pirates}{\b0 and}{\b0 Thieves...................
................................................................................
............14 }
\cf0 \fi566 {\b0 7.1.4}{\b0 Captures,}{\b0 Seizures}{\b0 and}{\b0 Restraint
s...............................................................................
..........14 }
\cf0 \fi566 {\b0 7.1.5}{\b0 Jettisons.........................................
................................................................................
.......}{\b0 14 }
\cf0 \fi566 {\b0 7.1.6}{\b0 Barratry..........................................
................................................................................
.......}{\b0 15 }
\cf0 \fi282 {\b0 7.2}{\b0 Excluded}{\b0 Perils...............................
................................................................................
..............15 }
\cf0 \fi566 {\b0 7.2.1}{\b0 Wilful}{\b0 Misconduct...........................
................................................................................
.....15 }
\cf0 \fi566 {\b0 7.2.2}{\b0 Delay.............................................
................................................................................
........15 }
\cf0 \fi566 {\b0 7.2.3}{\b0 Wear}{\b0 and}{\b0 Tear}{\b0 etc...............
................................................................................
..................15 }
\cf0 \fi566 {\b0 7.2.4}{\b0 Vermin............................................
................................................................................
......16 }
\cf0 \fi566 {\b0 7.2.5}{\b0 Loss}{\b0 or}{\b0 Damage}{\b0 to}{\b0 Machiner
y...............................................................................
...............16 }
\cf0 \fi282 {\b0 7.3}{\b0 All}{\b0 Risks}{\b0 Policies......................
................................................................................
...................}{\b0 16 }
\cf0 \fi282 {\b0 7.4}{\b0 Two}{\b0 or}{\b0 More}{\b0 Concurrent}{\b0 Cause
s...............................................................................
..................}{\b0 17 }
\cf0 {\b0 8}{\b0 Warranties...................................................
................................................................................
.........}{\b0 17 }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
831 \b \f20 \fs21 \cf0 iv
\cf0 \fi282 {\b0 8.1}{\b0 What}{\b0 is}{\b0 a}{\b0 warranty................
................................................................................
........................17 }
\cf0 \fi282 {\b0 8.2}{\b0 Implied}{\b0 Warranties............................
................................................................................
...........}{\b0 18 }
\cf0 \fi566 {\b0 8.2.1}{\b0 Legality}{\b0 s.34}{\b0 MIA.....................
................................................................................
............18 }
\cf0 \fi566 {\b0 8.2.2}{\b0 Neutrality}{\b0 s.36}{\b0 MIA...................
................................................................................
...........18 }
\cf0 \fi566 {\b0 8.2.3}{\b0 Seaworthiness}{\b0 ss.37}{\b0 &}{\b0 38}{\b0 M
IA..............................................................................
..............}{\b0 18 }
\cf0 \fi282 {\b0 8.3}{\b0 Express}{\b0 Warranties............................
................................................................................
...........19 }
\cf0 \fi566 {\b0 8.3.1}{\b0 s.33}{\b0 MIA....................................
................................................................................
...........19 }
\cf0 \fi566 {\b0 8.3.2}{\b0 Express}{\b0 Warranty}{\b0 v}{\b0 Suspensive}{\
b0 Conditions}{\b0 ...........................................................
.............19 }
\cf0 \fi566 {\b0 8.3.3}{\b0 Examples}{\b0 of}{\b0 Express}{\b0 Warranties..
................................................................................
........20 }

\cf0 \fi566 {\b0 8.3.4}{\b0 Consequences}{\b0 of}{\b0 Breach................
................................................................................
.......21 }
\cf0 \fi848 {\b0 8.3.4.1}{\b0 s.39}{\b0 MIA..................................
................................................................................
.....}{\b0 21 }
\cf0 {\b0 9}{\b0 Losses}{\b0 and}{\b0 Measure}{\b0 of}{\b0 Indemnity......
................................................................................
..................21 }
\cf0 \fi282 {\b0 9.1}{\b0 Duty}{\b0 of}{\b0 Assured}{\b0 to}{\b0 mitigate}
{\b0 s.}{\b0 80}{\b0 MIA.....................................................
...................................}{\b0 21 }
\cf0 \fi282 {\b0 9.2}{\b0 Total}{\b0 Loss}{\b0 ss.54-56}{\b0 MIA...........
................................................................................
...................21 }
\cf0 \fi566 {\b0 9.2.1}{\b0 Measure}{\b0 of}{\b0 Indemnity}{\b0 for}{\b0 T
otal}{\b0 Loss}{\b0 s.67}{\b0 MIA............................................
.......................}{\b0 22 }
\cf0 \fi282 {\b0 9.3}{\b0 Constructive}{\b0 Total}{\b0 Loss}{\b0 s.}{\b0 5
7}{\b0 MIA.....................................................................
.........................}{\b0 22 }
\cf0 \fi566 {\b0 9.3.1}{\b0 Abandonment}{\b0 ss.58-60}{\b0 MIA..............
................................................................................
...22 }
\cf0 \fi282 {\b0 9.4}{\b0 Partial}{\b0 Losses................................
................................................................................
................23 }
\cf0 \fi566 {\b0 9.4.1}{\b0 Measure}{\b0 of}{\b0 Indemnity}{\b0 for}{\b0 P
artial}{\b0 Loss...............................................................
..................}{\b0 24 }
\cf0 \fi848 {\b0 9.4.1.1}{\b0 Of}{\b0 Ship...................................
................................................................................
.......24 }
\cf0 \fi848 {\b0 9.4.1.2}{\b0 Of}{\b0 Goods..................................
................................................................................
.....24 }
\cf0 \fi282 {\b0 9.5}{\b0 Sue}{\b0 and}{\b0 Labour}{\b0 Expenses}{\b0 s.79
}{\b0 MIA......................................................................
......................}{\b0 24 }
\cf0 \fi282 {\b0 9.6}{\b0 Third}{\b0 Party}{\b0 Liability}{\b0 s.73}{\b0 M
IA..............................................................................
.......................25 }\par
}

ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
66 \b \f20 \fs21 \cf0 v
\cf0 \fi282 {\b0 9.7}{\b0 Proportional}{\b0 Liability}{\b0 s.}{\b0 75}{\b0
MIA.............................................................................
.....................}{\b0 25 }
\cf0 \fi282 {\b0 9.8}{\b0 Successive}{\b0 Losses}{\b0 s.78}{\b0 MIA.........
................................................................................
...............}{\b0 25 }
\cf0 {\b0 10}{\b0 Prescription}{\b0 Periods}{\b0 and}{\b0 Notice}{\b0 Requi
rements.........................................................................
.........25 }
\cf0 \fi282 {\b0 10.1}{\b0 Prescription}{\b0 by}{\b0 Statute.................
................................................................................
...............25 }
\cf0 \fi282 {\b0 10.2}{\b0 Contractual}{\b0 Limitation}{\b0 and}{\b0 Notice}
{\b0 Periods...................................................................
.............}{\b0 26 }
\cf0 \fi282 {\b0 10.3}{\b0 Relief}{\b0 Against}{\b0 Forfeiture...............
................................................................................
.............27 }
\cf0 {\b0 11}{\b0 Subrogation}{\b0 s.81}{\b0 MIA.............................
................................................................................
...........27 }
\cf0 {\b0 12}{\b0 Underinsurance,}{\b0 Overinsurance}{\b0 and}{\b0 Double}{\
b0 Insurance...................................................................
..}{\b0 27 }
\cf0 \fi282 {\b0 12.1}{\b0 Underinsurance}{\b0 s.88}{\b0 MIA.................
................................................................................
..........27 }
\cf0 \fi282 {\b0 12.2}{\b0 Overinsurance}{\b0 s.85(8)}{\b0 MIA...............
................................................................................
.........27 }
\cf0 \fi282 {\b0 12.3}{\b0 Double}{\b0 Insurance}{\b0 s.86}{\b0 MIA.........

................................................................................
...............27 }
\cf0 \fi566 {\b0 12.3.1}{\b0 Rights}{\b0 of}{\b0 Insured}{\b0 s.}{\b0 86(2)
}{\b0 MIA......................................................................
.....................28 }
\cf0 \fi566 {\b0 12.3.2}{\b0 Rights}{\b0 of}{\b0 Insurers}{\b0 s.87}{\b0 MI
A...............................................................................
.................28 }
\cf0 {\b0 13}{\b0 Miscellaneous}{\b0 Issues...................................
................................................................................
.......28 }
\cf0 \fi282 {\b0 13.1}{\b0 Relief}{\b0 Against}{\b0 Forfeiture...............
................................................................................
.............28 }
\cf0 \fi282 {\b0 13.2}{\b0 Third}{\b0 Party}{\b0 Rights}{\b0 Against}{\b0 I
nsurers.........................................................................
..................}{\b0 29 }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
0028a28a0028a28a0028a28a0028a28a0028a28a0028a28a00ffd9
}}\par}\sect\sectd\pard\plain
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}}\par}{\phpg\posx1136\pvpg\posy1170\absw4362\absh1765 \b\i \f20 \fs21 \cf0 \b\i
\f20 \fs21 \cf0 Giaschi & Margolis
\par}{\phpg\posx1136\pvpg\posy1170\absw4362\absh1765 \sl-335 \par\b\i \f20 \fs21
\cf0 \fi89 {\i0 \f10 \fs28 1}{\i0 \f10 \fs28 Introduction }
\cf0 \fi364 {\f10 \fs25 1.1}{\f10 \fs25 History }
\cf0 \fi566 {\b0\i0 Origins}{\b0\i0 date}{\b0\i0 back}{\b0\i0 to}{\b0\i0 at
}{\b0\i0 least}{\b0\i0 215}{\b0\i0 B.C. }\par
}
{\phpg\posx6062\pvpg\posy1170\absw165\absh145 \b \f20 \fs21 \cf0 \b \f20 \fs21 \
cf0 1 \par
}
{\phpg\posx8650\pvpg\posy1170\absw2565\absh145 \b\i \f20 \fs21 \cf0 \b\i \f20 \f
s21 \cf0 www.AdmiraltyLaw.com \par
}
{\phpg\posx1500\pvpg\posy3528\absw9983\absh9739 \f20 \fs21 \cf0 \fi201 \f20 \fs2
1 \cf0 First codification was the English Marine Insurance Act of 1906. This is
the act upon which all
\par}{\phpg\posx1500\pvpg\posy3528\absw9983\absh9739 \sl-273 \f20 \fs21 \cf0 \fi
201 subsequent acts are based, including the Canadian statutes. This was a codif
ication of existing
201 jurisprudence and practice. The English Act was probably received in Canada
as Canadian law.
\par}{\phpg\posx1500\pvpg\posy3528\absw9983\absh9739 \sl-298 \par\f20 \fs21 \cf0
{\b\i \f10 \fs25 1.2}{\b\i \f10 \fs25 Governing}{\b\i \f10 \fs25 Law/Legislat
ion }
\fi201 Although the law of insurance is generally thought to come within Provin
cial jurisdiction under
201 the heading "property and civil rights" in the Constitution Act, marine insu
rance is now
201 understood to be a matter governed by Canadian Maritime Law (Triglav v Terra
sses Jewellers,
201 [1983] SCR 283).

\fi281 {\b \f10 \fs25 1.2.1}{\b \f10 \fs25 Federal}{\b \f10 \fs25 Marine}{\b
\f10 \fs25 Insurance}{\b \f10 \fs25 Act }
\fi485 Following the decision in Triglav v Terrasses Jewellers, the Federal Par
liament enacted the
485 Federal Marine Insurance Act, S.C. 1993, c.22. This act is modelled on the E
nglish Marine
485 Insurance Act of 1906.
\fi281 {\b \f10 \fs25 1.2.2}{\b \f10 \fs25 Provincial}{\b \f10 \fs25 Insuranc
e}{\b \f10 \fs25 Acts }
\fi485 Prior to the enactment of the Federal Marine Insurance Act many of the p
rovinces had their
485 own acts governing marine insurance. The British Columbia statute is the Ins
urance (Marine)
485 Act, RSBC 1996 c. 230. These provincial statutes are also modelled on the En
glish Marine
485 Insurance Act of 1906 and are therefore not substantially different from the
Federal Act.
\fi485 The various provinces also have insurance statutes of general applicatio
n which purport to
485 apply to marine insurance. The B.C. statute is the Insurance Act, RSBC 1996,
c.226. Part 2 of
485 this Act contains various provisions of general application. Subject to cert
ain specified
485 exceptions specified in section 3(b), these provisions purport to apply to c
ontracts of marine
485 insurance. The B.C. Insurance Act purports to regulate such things as:
\fi1054 {\f0\fs21 \bullet }{\f40 \fs16 }
contents of a policy
\fi1054 {\f0\fs21 \bullet }{\f40 \fs16 }
appraisals
\fi1054 {\f0\fs21 \bullet }{\f40 \fs16 }
relief against forfeiture
\fi1054 {\f0\fs21 \bullet }{\f40 \fs16 }
waiver
\fi1054 {\f0\fs21 \bullet }{\f40 \fs16 }
misrepresentation \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi1418 {\f0\fs21 \bullet }{\b0\i0 \f40 \fs16 }{\b0\i0
payment}{\b0\i0
of}{\b0\i0 premiums }
time}{\b0\i0 f
or}{\b0\i0 payment}{\b0\i0 of}{\b0\i0 claims }
limitation}{\b0
\i0 periods,}{\b0\i0 and }\par
}
cf0 2 \par
}
}
{\phpg\posx1500\pvpg\posy3428\absw9994\absh10033 \f40 \fs16 \cf0 \fi1054 {\f0\fs
21 \bullet }\f40 \fs16 \cf0 {\f20 \fs21
third}{\f20 \fs21 party}{\f20 \fs21
claims}{\f20 \fs21 against}{\f20 \fs21 insurers }
0 \fi554 {\b\i \f10 \fs21 1.2.2.1}{\b\i \f10 \fs21 Ordon}{\b\i \f10 \fs21 v}{\
b\i \f10 \fs21 Grail }
0 \fi770 {\f20 \fs21 Although}{\f20 \fs21 the}{\f20 \fs21 various}{\f20 \fs21
provincial}{\f20 \fs21 acts}{\f20 \fs21 have}{\f20 \fs21 not}{\f20 \fs21 be
en}{\f20 \fs21 repealed}{\f20 \fs21 and}{\f20 \fs21 remain}{\f20 \fs21 in}{\
f20 \fs21 force,}{\f20 \fs21 the }
\par}{\phpg\posx1500\pvpg\posy3428\absw9994\absh10033 \sl-273 \f40 \fs16 \cf0 \f
i770 {\f20 \fs21 decision}{\f20 \fs21 of}{\f20 \fs21 the}{\f20 \fs21 Supreme}
{\f20 \fs21 Court}{\f20 \fs21 of}{\f20 \fs21 Canada}{\f20 \fs21 in}{\f20 \fs
21 Ordon}{\f20 \fs21 v}{\f20 \fs21 Grail}{\f20 \fs21 casts}{\f20 \fs21 seri
ous}{\f20 \fs21 doubt}{\f20 \fs21 on}{\f20 \fs21 whether }
i770 {\f20 \fs21 they}{\f20 \fs21 have}{\f20 \fs21 any}{\f20 \fs21 applicatio
n}{\f20 \fs21 to}{\f20 \fs21 contracts}{\f20 \fs21 of}{\f20 \fs21 marine}{\f
20 \fs21 insurance.}{\f20 \fs21 There}{\f20 \fs21 may,}{\f20 \fs21 however,}
{\f20 \fs21 be}{\f20 \fs21 an }
i770 {\f20 \fs21 exception}{\f20 \fs21 for}{\f20 \fs21 limitation}{\f20 \fs21
periods.}{\f20 \fs21 (see}{\f20 \fs21 s.10}{\f20 \fs21 below) }
0 {\b\i \f10 \fs25 1.3}{\b\i \f10 \fs25 Nature}{\b\i \f10 \fs25 and}{\b\i \f10
\fs25 Scope}{\b\i \f10 \fs25 of}{\b\i \f10 \fs25 Marine}{\b\i \f10 \fs25 In
surance }
0 \fi201 {\f20 \fs21 The}{\f20 \fs21 nature}{\f20 \fs21 and}{\f20 \fs21 scope
}{\f20 \fs21 of}{\f20 \fs21 marine}{\f20 \fs21 insurance}{\f20 \fs21 is}{\f2
0 \fs21 determined}{\f20 \fs21 by}{\f20 \fs21 reference}{\f20 \fs21 to}{\f20

\fs21 s.}{\f20 \fs21 6}{\f20 \fs21 of}{\f20 \fs21 the}{\f20 \fs21 Marine }
i201 {\f20 \fs21 Insurance}{\f20 \fs21 Act}{\f20 \fs21 and}{\f20 \fs21 by}{\f
20 \fs21 the}{\f20 \fs21 definitions}{\f20 \fs21 of}{\f20 \fs21 "marine}{\f2
0 \fs21 adventure"}{\f20 \fs21 and}{\f20 \fs21 "maritime}{\f20 \fs21 perils"
. }
0 \fi201 {\f20 \fs21 It}{\f20 \fs21 is}{\f20 \fs21 a}{\f20 \fs21 contract}{\f
20 \fs21 of}{\f20 \fs21 indemnity}{\f20 \fs21 but}{\f20 \fs21 the}{\f20 \fs2
1 extent}{\f20 \fs21 of}{\f20 \fs21 the}{\f20 \fs21 indemnity}{\f20 \fs21 i
s}{\f20 \fs21 determined}{\f20 \fs21 by}{\f20 \fs21 the}{\f20 \fs21 contract
. }
0 \fi201 {\f20 \fs21 It}{\f20 \fs21 relates}{\f20 \fs21 to}{\f20 \fs21 losses
}{\f20 \fs21 incidental}{\f20 \fs21 to}{\f20 \fs21 a}{\f20 \fs21 marine}{\f2
0 \fs21 adventure}{\f20 \fs21 or}{\f20 \fs21 to}{\f20 \fs21 the}{\f20 \fs21
building,}{\f20 \fs21 repairing}{\f20 \fs21 or}{\f20 \fs21 launching}{\f20 \
fs21 of}{\f20 \fs21 a }
i201 {\f20 \fs21 ship. }
0 \fi201 {\f20 \fs21 A}{\f20 \fs21 marine}{\f20 \fs21 adventure}{\f20 \fs21 i
s}{\f20 \fs21 any}{\f20 \fs21 situation}{\f20 \fs21 where}{\f20 \fs21 the}{\
f20 \fs21 insured}{\f20 \fs21 property}{\f20 \fs21 is}{\f20 \fs21 exposed}{\
f20 \fs21 to}{\f20 \fs21 maritime}{\f20 \fs21 perils. }
0 \fi201 {\f20 \fs21 Maritime}{\f20 \fs21 perils}{\f20 \fs21 are}{\f20 \fs21
perils}{\f20 \fs21 consequent}{\f20 \fs21 on}{\f20 \fs21 or}{\f20 \fs21 inci
dental}{\f20 \fs21 to}{\f20 \fs21 navigation. }
0 \fi281 {\b \f10 \fs25 1.3.1}{\b \f10 \fs25 s.6}{\b \f10 \fs25 MIA }
i1193 {\f20 \fs19 6.}{\f20 \fs19 (1)}{\f20 \fs19 A}{\f20 \fs19 contract}{\f20
\fs19 of}{\f20 \fs19 marine}{\f20 \fs19 insurance}{\f20 \fs19 is}{\f20 \fs1
9 a}{\f20 \fs19 contract}{\f20 \fs19 whereby}{\f20 \fs19 the}{\f20 \fs19 in
surer}{\f20 \fs19 undertakes }
i1193 {\f20 \fs19 to}{\f20 \fs19 indemnify}{\f20 \fs19 the}{\f20 \fs19 insure
d,}{\f20 \fs19 in}{\f20 \fs19 the}{\f20 \fs19 manner}{\f20 \fs19 and}{\f20 \
fs19 to}{\f20 \fs19 the}{\f20 \fs19 extent}{\f20 \fs19 agreed}{\f20 \fs19 i
n}{\f20 \fs19 the}{\f20 \fs19 contract, }
i1193 {\f20 \fs19 against }
i1193 {\f20 \fs19 (a)}{\f20 \fs19 losses}{\f20 \fs19 that}{\f20 \fs19 are}{\f
20 \fs19 incidental}{\f20 \fs19 to}{\f20 \fs19 a}{\f20 \fs19 marine}{\f20 \f
s19 adventure}{\f20 \fs19 or}{\f20 \fs19 an}{\f20 \fs19 adventure}{\f20 \fs1
9 analogous}{\f20 \fs19 to}{\f20 \fs19 a }
i1193 {\f20 \fs19 marine}{\f20 \fs19 adventure,}{\f20 \fs19 including}{\f20 \f
s19 losses}{\f20 \fs19 arising}{\f20 \fs19 from}{\f20 \fs19 a}{\f20 \fs19 l
and}{\f20 \fs19 or}{\f20 \fs19 air}{\f20 \fs19 peril}{\f20 \fs19 incidental}
{\f20 \fs19 to }
i1193 {\f20 \fs19 such}{\f20 \fs19 an}{\f20 \fs19 adventure}{\f20 \fs19 if}{\
f20 \fs19 they}{\f20 \fs19 are}{\f20 \fs19 provided}{\f20 \fs19 for}{\f20 \f
s19 in}{\f20 \fs19 the}{\f20 \fs19 contract}{\f20 \fs19 or}{\f20 \fs19 by}{
\f20 \fs19 usage}{\f20 \fs19 of}{\f20 \fs19 the}{\f20 \fs19 trade; }
i1193 {\f20 \fs19 or }

i1193 {\f20 \fs19 (b)}{\f20 \fs19 losses}{\f20 \fs19 that}{\f20 \fs19 are}{\f
20 \fs19 incidental}{\f20 \fs19 to}{\f20 \fs19 the}{\f20 \fs19 building,}{\f
20 \fs19 repair}{\f20 \fs19 or}{\f20 \fs19 launch}{\f20 \fs19 of}{\f20 \fs19
a}{\f20 \fs19 ship. }
i1193 {\f20 \fs19 (2)}{\f20 \fs19 Subject}{\f20 \fs19 to}{\f20 \fs19 this}{\f
20 \fs19 Act,}{\f20 \fs19 any}{\f20 \fs19 lawful}{\f20 \fs19 marine}{\f20 \f
s19 adventure}{\f20 \fs19 may}{\f20 \fs19 be}{\f20 \fs19 the}{\f20 \fs19 su
bject}{\f20 \fs19 of}{\f20 \fs19 a }
i1193 {\f20 \fs19 contract. }
0 \fi281 {\b \f10 \fs25 1.3.2}{\b \f10 \fs25 s.2(1)}{\b \f10 \fs25 "Marine}{\b
\f10 \fs25 Adventure" }
i1193 {\f20 \fs19 "marine}{\f20 \fs19 adventure"}{\f20 \fs19 means}{\f20 \fs19
any}{\f20 \fs19 situation}{\f20 \fs19 where}{\f20 \fs19 insurable}{\f20 \fs
19 property}{\f20 \fs19 is}{\f20 \fs19 exposed}{\f20 \fs19 to }
i1193 {\f20 \fs19 maritime}{\f20 \fs19 perils,}{\f20 \fs19 and}{\f20 \fs19 in
cludes}{\f20 \fs19 any}{\f20 \fs19 situation}{\f20 \fs19 where }
i1193 {\f20 \fs19 (a)}{\f20 \fs19 the}{\f20 \fs19 earning}{\f20 \fs19 or}{\f2
0 \fs19 acquisition}{\f20 \fs19 of}{\f20 \fs19 any}{\f20 \fs19 freight,}{\f2
0 \fs19 commission,}{\f20 \fs19 profit}{\f20 \fs19 or}{\f20 \fs19 other}{\f2
0 \fs19 pecuniary }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\f20 \fs21 \cf0 Giaschi & Margolis \par
}
cf0 3 \par
}
}
{\phpg\posx1225\pvpg\posy1755\absw10467\absh10980 \f20 \fs19 \cf0 \fi1468 \f20 \
fs19 \cf0 benefit, or the security for any advance, loan or disbursement, is end
angered by
\par}{\phpg\posx1225\pvpg\posy1755\absw10467\absh10980 \sl-250 \f20 \fs19 \cf0 \
fi1468 the exposure of insurable property to maritime perils, and
fi1468 (b) any liability to a third party may be incurred by the owner of, or ot
her person
fi1468 interested in or responsible for, insurable property, by reason of mariti
me perils;
\par}{\phpg\posx1225\pvpg\posy1755\absw10467\absh10980 \sl-275 \par\f20 \fs19 \c
f0 \fi556 {\b \f10 \fs25 1.3.3}{\b \f10 \fs25 s.2(1)}{\b \f10 \fs25 "Maritime}
{\b \f10 \fs25 Perils" }
fi1468 "maritime perils" means the perils consequent on or incidental to navigat
ion,
fi1468 including perils of the seas, fire, war perils, acts of pirates or thieve
s, captures,
fi1468 seizures, restraints, detainments of princes and peoples, jettisons, barr
atry and all
fi1468 other perils of a like kind and, in respect of a marine policy, any peril
designated
fi1468 by the policy;
f0 {\b \f10 \fs29 2}{\b \f10 \fs29 Types}{\b \f10 \fs29 of}{\b \f10 \fs29 Mar
ine}{\b \f10 \fs29 Insurance }
f0 \fi274 {\b\i \f10 \fs25 2.1}{\b\i \f10 \fs25 Hull}{\b\i \f10 \fs25 and}{\b\
i \f10 \fs25 Machinery }
f0 \fi274 {\b\i \f10 \fs25 2.2}{\b\i \f10 \fs25 Cargo }
f0 \fi274 {\b\i \f10 \fs25 2.3}{\b\i \f10 \fs25 P&I}{\b\i \f10 \fs25 Cover }
f0 \fi274 {\b\i \f10 \fs25 2.4}{\b\i \f10 \fs25 Other}{\b\i \f10 \fs25 Third}{
\b\i \f10 \fs25 Party}{\b\i \f10 \fs25 Liability}{\b\i \f10 \fs25 Coverage }
f0 \fi1186 {\fs21 Towers}{\fs21 Legal}{\fs21 Liability }
f0 \fi1186 {\fs21 Ship}{\fs21 Builders}{\fs21 and}{\fs21 Repairers}{\fs21 Le
gal}{\fs21 Liability }
f0 \fi1186 {\fs21 Terminal}{\fs21 Operators}{\fs21 Legal}{\fs21 Liability }
f0 \fi1186 {\fs21 Marinas}{\fs21 and}{\fs21 Dock}{\fs21 Owners}{\fs21 Legal}
{\fs21 Liability }
f0 \fi274 {\b\i \f10 \fs25 2.5}{\b\i \f10 \fs25 Specified}{\b\i \f10 \fs25 Per
ils}{\b\i \f10 \fs25 v}{\b\i \f10 \fs25 All}{\b\i \f10 \fs25 Risks }
f0 \fi476 {\fs21 It}{\fs21 is}{\fs21 important}{\fs21 to}{\fs21 distinguish}
{\fs21 between}{\fs21 marine}{\fs21 policies}{\fs21 that}{\fs21 are}{\fs21
specified}{\fs21 perils}{\fs21 v}{\fs21 all}{\fs21 risks. }
f0 \fi476 {\fs21 A}{\fs21 specified}{\fs21 perils}{\fs21 policy}{\fs21 is}{\
fs21 one}{\fs21 in}{\fs21 which}{\fs21 the}{\fs21 insurer}{\fs21 agrees}{\
fs21 to}{\fs21 indemnify}{\fs21 the}{\fs21 assured}{\fs21 for}{\fs21 losse
s }
fi476 {\fs21 caused}{\fs21 by}{\fs21 specific}{\fs21 perils}{\fs21 that}{\fs
21 are}{\fs21 identified}{\fs21 in}{\fs21 the}{\fs21 policy.}{\fs21 The}{\
fs21 Canadian}{\fs21 Hulls}{\fs21 (Pacific)}{\fs21 Clauses }
fi476 {\fs21 are}{\fs21 examples}{\fs21 of}{\fs21 a}{\fs21 specified}{\fs21
perils}{\fs21 policy.}{\fs21 A}{\fs21 loss}{\fs21 must}{\fs21 be}{\fs21
caused}{\fs21 by}{\fs21 one}{\fs21 of}{\fs21 the}{\fs21 specified}{\fs21 p
erils}{\fs21 in }
fi476 {\fs21 order}{\fs21 for}{\fs21 it}{\fs21 to}{\fs21 be}{\fs21 covered}
{\fs21 by}{\fs21 the}{\fs21 policy.}{\fs21 Most}{\fs21 hull}{\fs21 and}{\f
s21 machinery}{\fs21 policies}{\fs21 on}{\fs21 commercial}{\fs21 vessels }
fi476 {\fs21 are}{\fs21 insured}{\fs21 on}{\fs21 a}{\fs21 specified}{\fs21
or}{\fs21 named}{\fs21 perils}{\fs21 basis. }
f0 \fi476 {\fs21 An}{\fs21 all}{\fs21 risks}{\fs21 policy,}{\fs21 on}{\fs21
the}{\fs21 other}{\fs21 hand,}{\fs21 provides}{\fs21 much}{\fs21 broader}{
\fs21 coverage.}{\fs21 An}{\fs21 all}{\fs21 risks}{\fs21 policy}{\fs21 is}
{\fs21 one }
fi476 {\fs21 in}{\fs21 which}{\fs21 the}{\fs21 insurer}{\fs21 agrees}{\fs21
to}{\fs21 indemnify}{\fs21 the}{\fs21 assured}{\fs21 "against}{\fs21 all}{
\fs21 risks}{\fs21 of}{\fs21 loss}{\fs21 or}{\fs21 damage".}{\fs21 Things
}
fi476 {\fs21 that}{\fs21 are}{\fs21 not}{\fs21 covered}{\fs21 by}{\fs21 an}
{\fs21 all}{\fs21 risks}{\fs21 policy}{\fs21 need}{\fs21 to}{\fs21 be}{\fs
21 specifically}{\fs21 excluded.}{\fs21 Most}{\fs21 cargo}{\fs21 policies }
fi476 {\fs21 and}{\fs21 many}{\fs21 policies}{\fs21 on}{\fs21 yachts}{\fs21
and}{\fs21 pleasure}{\fs21 craft}{\fs21 are}{\fs21 all}{\fs21 risks}{\fs21
policies. }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi89 {\i0 \f10 \fs29 3}{\i0 \f10 \fs29 Parties }

\cf0 \fi364 {\f10 \fs25 3.1}{\f10 \fs25 Assured }\par
}
cf0 4 \par
}
}
s21 \cf0 The assured, also called the insured, is the person who has taken out t
he policy and is obliged to
fi201 pay the premium.
f0 {\b\i \f10 \fs25 3.2}{\b\i \f10 \fs25 Additional}{\b\i \f10 \fs25 Assureds
}
f0 \fi485 Policies of marine insurance frequently either name additional assured
s or contain a clause that
fi485 extends the insurance to additional assureds by description.
f0 {\b\i \f10 \fs25 3.3}{\b\i \f10 \fs25 Underwriters }
f0 \fi201 Underwriters are the entities that agree to indemnify the assured upon
the happening of an insured
fi201 loss. They are also called insurers. Underwriters can be individuals or co
rporations. Underwriters
fi201 at Lloyds are represented by various syndicates who negotiate and sign pol
icies on behalf of the
fi201 "names" they represent.
f0 \fi201 It is not unusual for a policy of marine insurance to have more than o
ne underwriter. In fact, it is
fi201 usual for there to be more than one. The policy will name the underwriters
and specify the extent
fi201 of each underwriters interest. The first underwriter named on the policy i
s the "lead" underwriter.
fi201 This is the underwriter that will make most decisions that are required to
be made in the event of
fi201 a loss.
f0 \fi281 {\b \f10 \fs25 3.3.1}{\b \f10 \fs25 Underwriting}{\b \f10 \fs25 Agen
ts }
f0 \fi485 Underwriting agents are entities that have the authority to enter into
or sign insurance policies
fi485 on behalf of the underwriters. They sign as agent on behalf of the underwr
iters and, because
fi485 they are agents only, they are not personally liable to the assured under
the insurance contract.

fi485 An underwriting agent may represent more than one underwriter and may sign
on behalf of
fi485 more than one underwriter.
f0 \fi281 {\b \f10 \fs25 3.3.2}{\b \f10 \fs25 P&I}{\b \f10 \fs25 Clubs }
f0 \fi485 P&I Clubs are similar to a mutual insurance company that offers third
party liability coverage
fi485 to shipowners. The members of a P&I Club are shipowners. In a sense, the s
hipowners are
fi485 both insurers and assureds. P&I Clubs do not normally issue policies of in
surance. Rather, the
fi485 terms of the coverage they provide are usually set out in the club's Rules
.
f0 \fi281 {\b \f10 \fs25 3.3.3}{\b \f10 \fs25 Insurance}{\b \f10 \fs25 Compani
es }
f0 \fi485 The traditional insurance companies also operate in the marine insuran
ce field as underwriters.
fi485 They may or may not use an underwriting agent. \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi364 {\f10 \fs25 3.4}{\f10 \fs25 Brokers }\par
}
cf0 5 \par
}
}
{\phpg\posx1702\pvpg\posy2358\absw9922\absh1132 \f20 \fs21 \cf0 \f20 \fs21 \cf0

Brokers play an important role in marine insurance. They are the agents of the a
ssured. The
\par}{\phpg\posx1702\pvpg\posy2358\absw9922\absh1132 \sl-273 \f20 \fs21 \cf0 bro
ker will meet with the assured to determine its insurance requirements. The brok
er will then
\par}{\phpg\posx1702\pvpg\posy2358\absw9922\absh1132 \sl-274 \f20 \fs21 \cf0 can
vass the market to find underwriters willing to insure the assured and will nego
tiate terms with
\par}{\phpg\posx1702\pvpg\posy2358\absw9922\absh1132 \sl-274 \f20 \fs21 \cf0 tho
se underwriters. The broker may also become involved in the event of a loss by p
resenting the
\par}{\phpg\posx1702\pvpg\posy2358\absw9922\absh1132 \sl-273 \f20 \fs21 \cf0 los
s to underwriters and negotiating on behalf of the assured. \par
}
{\phpg\posx1225\pvpg\posy4574\absw10435\absh9010 \b \f10 \fs29 \cf0 \b \f10 \fs2
9 \cf0 4 The Marine Insurance Contract
\cf0 \fi192 {\b0 \f20 \fs21 Although}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 MIA}{
\b0 \f20 \fs21 regulates}{\b0 \f20 \fs21 certain}{\b0 \f20 \fs21 aspects}{\b0
\f20 \fs21 of}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 marine}{\b0 \f20 \fs21 insu
rance}{\b0 \f20 \fs21 contract}{\b0 \f20 \fs21 it}{\b0 \f20 \fs21 generally}{
\b0 \f20 \fs21 preserves }
\par}{\phpg\posx1225\pvpg\posy4574\absw10435\absh9010 \sl-274 \b \f10 \fs29 \cf0
\fi192 {\b0 \f20 \fs21 freedom}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 contract.}{
\b0 \f20 \fs21 Therefore,}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 parties}{\b0 \f
20 \fs21 are,}{\b0 \f20 \fs21 for}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 most}{
\b0 \f20 \fs21 part,}{\b0 \f20 \fs21 free}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21
determine}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 nature}{\b0 \f20 \fs21 and }
\fi192 {\b0 \f20 \fs21 extent}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 their}{\b0 \
f20 \fs21 obligations}{\b0 \f20 \fs21 and}{\b0 \f20 \fs21 responsibilities.}{
\b0 \f20 \fs21 The}{\b0 \f20 \fs21 terms}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21
the}{\b0 \f20 \fs21 contract}{\b0 \f20 \fs21 are}{\b0 \f20 \fs21 usually}{\b0
\f20 \fs21 contained}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 the }
\fi192 {\b0 \f20 \fs21 policy}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 insurance.}{
\b0 \f20 \fs21 There}{\b0 \f20 \fs21 may,}{\b0 \f20 \fs21 however,}{\b0 \f20
\fs21 be}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 slip}{\b0 \f20 \fs21 or}{\b0 \f20
\fs21 cover}{\b0 \f20 \fs21 note}{\b0 \f20 \fs21 which}{\b0 \f20 \fs21 also
}{\b0 \f20 \fs21 evidences}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 terms}{\b0 \f2
0 \fs21 of }
\fi192 {\b0 \f20 \fs21 the}{\b0 \f20 \fs21 insurance}{\b0 \f20 \fs21 contract
. }
\cf0 \fi192 {\b0 \f20 \fs21 When}{\b0 \f20 \fs21 reviewing}{\b0 \f20 \fs21 the
}{\b0 \f20 \fs21 provisions}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20
\fs21 MIA}{\b0 \f20 \fs21 it}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 extremely}{\
b0 \f20 \fs21 important}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 note}{\b0 \f20 \fs
21 that}{\b0 \f20 \fs21 many}{\b0 \f20 \fs21 sections}{\b0 \f20 \fs21 are }
\fi192 {\b0 \f20 \fs21 prefaced}{\b0 \f20 \fs21 with}{\b0 \f20 \fs21 "Unless}
{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 policy}{\b0 \f20 \fs21 otherwise}{\b0 \f2
0 \fs21 provides...".}{\b0 \f20 \fs21 This}{\b0 \f20 \fs21 phrase}{\b0 \f20 \
fs21 preserves}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 parties}{\b0 \f20 \fs21 r
ights}{\b0 \f20 \fs21 to }
\fi192 {\b0 \f20 \fs21 chose}{\b0 \f20 \fs21 their}{\b0 \f20 \fs21 own}{\b0 \
f20 \fs21 contractual}{\b0 \f20 \fs21 terms}{\b0 \f20 \fs21 and}{\b0 \f20 \fs
21 it}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 therefore}{\b0 \f20 \fs21 always}{\
b0 \f20 \fs21 important}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 review}{\b0 \f20 \
fs21 the}{\b0 \f20 \fs21 policy}{\b0 \f20 \fs21 terms}{\b0 \f20 \fs21 to }
\fi192 {\b0 \f20 \fs21 see}{\b0 \f20 \fs21 if}{\b0 \f20 \fs21 they}{\b0 \f20
\fs21 differ}{\b0 \f20 \fs21 from}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 provis
ions}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 MIA. }
\cf0 \fi274 {\i \fs25 4.1}{\i \fs25 Requirements }
\cf0 \fi556 {\fs25 4.1.1}{\fs25 ss.25-28}{\fs25 MIA }
\cf0 \fi760 {\b0 \f20 \fs21 A}{\b0 \f20 \fs21 contract}{\b0 \f20 \fs21 of}{\b0
\f20 \fs21 marine}{\b0 \f20 \fs21 insurance}{\b0 \f20 \fs21 is}{\b0 \f20 \fs
21 not}{\b0 \f20 \fs21 admissible}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 evidenc
e}{\b0 \f20 \fs21 unless}{\b0 \f20 \fs21 it}{\b0 \f20 \fs21 is}{\b0 \f20 \fs2
1 evidenced}{\b0 \f20 \fs21 by}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 marine }
\fi760 {\b0 \f20 \fs21 policy.}{\b0 \f20 \fs21 (s.25(1)}{\b0 \f20 \fs21 MIA)
}
\cf0 \fi760 {\b0 \f20 \fs21 A}{\b0 \f20 \fs21 marine}{\b0 \f20 \fs21 policy}{\
b0 \f20 \fs21 need}{\b0 \f20 \fs21 not}{\b0 \f20 \fs21 be}{\b0 \f20 \fs21 ex
ecuted}{\b0 \f20 \fs21 and}{\b0 \f20 \fs21 issued}{\b0 \f20 \fs21 when}{\b0 \
f20 \fs21 the}{\b0 \f20 \fs21 contract}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 ma
de}{\b0 \f20 \fs21 but}{\b0 \f20 \fs21 may}{\b0 \f20 \fs21 executed }
\fi760 {\b0 \f20 \fs21 and}{\b0 \f20 \fs21 issued}{\b0 \f20 \fs21 afterwards.
}{\b0 \f20 \fs21 (s25(2)}{\b0 \f20 \fs21 MIA) }
\cf0 \fi760 {\b0 \f20 \fs21 A}{\b0 \f20 \fs21 Marine}{\b0 \f20 \fs21 policy}{\
b0 \f20 \fs21 must}{\b0 \f20 \fs21 specify: }
\cf0 \fi1328 {\f0\fs21 \bullet }{\b0 \f40 \fs16 }{\b0 \f20 \fs21
the}{\b0 \f
20 \fs21 name}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 insured
, }
the}{\b0 \f
20 \fs21 subject}{\b0 \f20 \fs21 matter}{\b0 \f20 \fs21 insured}{\b0 \f20 \fs
21 (see}{\b0 \f20 \fs21 also}{\b0 \f20 \fs21 s.28}{\b0 \f20 \fs21 MIA), }
the}{\b0 \f
20 \fs21 perils}{\b0 \f20 \fs21 insured}{\b0 \f20 \fs21 against, }
the}{\b0 \f
20 \fs21 voyage}{\b0 \f20 \fs21 or}{\b0 \f20 \fs21 period}{\b0 \f20 \fs21 co
vered, }
the}{\b0 \f
20 \fs21 sum}{\b0 \f20 \fs21 insured,}{\b0 \f20 \fs21 and }
the}{\b0 \f
20 \fs21 name}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 insurer
.}{\b0 \f20 \fs21 (s.26}{\b0 \f20 \fs21 MIA) }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 6 \par
}
}
s21 \cf0 A marine policy must be signed by the insurer. (s.27 MIA)
f0 {\b\i \f10 \fs25 4.2}{\b\i \f10 \fs25 Time}{\b\i \f10 \fs25 and}{\b\i \f10
\fs25 Voyage}{\b\i \f10 \fs25 Policies}{\b\i \f10 \fs25 (s.}{\b\i \f10 \fs25
29}{\b\i \f10 \fs25 MIA) }
f0 \fi485 A marine policy may be a voyage or time policy. If it uses the words "
at and from" or "from" a
fi485 particular place to another place it is a voyage policy. If it insures the
subject matter for a
fi485 period of time it is a time policy.
f0 \fi485 A voyage policy comes to an end at the conclusion of the voyage. A tim
e policy comes to an
fi485 end upon the expiry of the time specified.
f0 \fi281 {\b \f10 \fs25 4.2.1}{\b \f10 \fs25 Special}{\b \f10 \fs25 Rules}{\b
\f10 \fs25 For}{\b \f10 \fs25 Voyage}{\b \f10 \fs25 Policies}{\b \f10 \fs25
ss.40-46}{\b \f10 \fs25 MIA }
f0 \fi485 For a voyage policy there is an implied term that the marine adventure
will commence within a
fi485 reasonable time and if it is not, the insurer may avoid the contract unles
s the insurer waived
fi485 the right to avoid or was aware of the circumstances causing the delay. (s
.40 MIA)
f0 \fi485 A voyage policy will not attach if the ship sails from or to places di
fferent from those
fi485 specified. (s. 41 MIA)

f0 \fi485 Where after the commencement of the risk the destination of the ship i
s voluntarily changed
fi485 the insurer is discharged from all liability for any loss occurring on or
after the time the
fi485 intention to change is manifested, unless the policy provides otherwise. (
s.42 MIA)
f0 \fi485 A deviation without lawful excuse from the agreed course or customary
course discharges the
fi485 insurer from liability for any loss occurring on or after the deviation. F
ailure to call at the ports
fi485 of discharge in the order specified or in their geographical order will be
a deviation. (s. 43
fi485 MIA)
f0 \fi485 A voyage policy must be carried out with reasonable dispatch and the i
nsurer is discharged
fi485 from all liability for any loss occurring on or after the time when the de
lay becomes
fi485 unreasonable. (s.44 MIA)
f0 \fi485 Pursuant to s.45 MIA a deviation or delay is justified if it is
f0 \fi1193 (a) authorised by any special term in the marine policy;
f0 \fi1193 (b) caused by circumstances beyond the control of the master and the
master's
fi1193 employer;
f0 \fi1193 (c) reasonably necessary in order to comply with an express warranty
or an implied
fi1193 warranty;
f0 \fi1193 (d) reasonably necessary for the safety of the ship or subject-matter
insured;
f0 \fi1193 (e) for the purpose of saving human life or aiding a ship in distress
where human life \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi1557 {\b0\i0 may}{\b0\i0 be}{\b0\i0 in}{\b0\i0 danger; }\par
}
cf0 7 \par
}
}
fs21 \cf0 (f) reasonably necessary for the purpose of obtaining medical aid for
any person on
fi1193 board the ship; or
f0 \fi1193 (g) caused by the barratrous conduct of the master or crew, if barrat
ry is one of the
fi1193 perils insured against.
f0 \fi485 Where transhipment at an intermediate port or place is necessitated by
a peril insured against
fi485 the insurer continues to be liable under the voyage policy for a loss occu
rring on or after the
fi485 date of transhipment. (s. 46 MIA)
f0 {\b\i \f10 \fs25 4.3}{\b\i \f10 \fs25 Valued}{\b\i \f10 \fs25 and}{\b\i \f1
0 \fs25 Unvalued}{\b\i \f10 \fs25 Policies}{\b\i \f10 \fs25 (s.30}{\b\i \f10
\fs25 MIA) }
f0 \fi201 A marine policy may be a valued or unvalued policy. If it specifies th
e agreed value of the subject
fi201 matter it is a valued policy. If it does not specify the agreed valued but
instead provides a limit of
fi201 the sum insured it is an unvalued policy.
f0 \fi201 In the event of a total loss under a valued policy, the amount of the
indemnity is the agreed value.
f0 \fi201 In the event of a total loss under an unvalued policy, the amount of t
he indemnity is calculated
fi201 pursuant to s. 19 MIA. In the case of a ship, the indemnity is the value o
f the ship at the time of

fi201 the commencement of the risk plus the insurance charge. In the case of car
go, the indemnity is the
fi201 prime cost of the goods, plus the shipping and insurance expenses.
f0 {\b\i \f10 \fs25 4.4}{\b\i \f10 \fs25 Floating}{\b\i \f10 \fs25 Policies}{\
b\i \f10 \fs25 (s.31}{\b\i \f10 \fs25 MIA) }
f0 \fi201 A marine policy may be a floating policy. A floating policy is one whi
ch leaves the name of the
fi201 ship or other particulars to be provided at a later time by declaration or
endorsement. Floating
fi201 policies are frequently used by shippers who routinely ship cargo. Floatin
g policies avoid a
fi201 shipper having to negotiate a new policy for every shipment. Using a float
ing policy the essential
fi201 terms of the insurance contract are agreed in advance. Thereafter, all of
the shippers goods will be
fi201 covered by that policy provided the shipper declares the goods as required
by the contract. The
fi201 shipper must declare all of the goods that are covered by the policy and t
heir value. A failure to
fi201 properly declare will jeopardise the insurance coverage although an omissi
on or error made in
fi201 good faith may be rectified even after a loss or the arrival of the goods.
If a declaration of value is
fi201 not made until after a loss or arrival of the goods, the indemnity is calc
ulated as though the policy
fi201 was an unvalued policy.
f0 {\b\i \f10 \fs25 4.5}{\b\i \f10 \fs25 Construction}{\b\i \f10 \fs25 of}{\b\
i \f10 \fs25 the}{\b\i \f10 \fs25 Contract }
f0 \fi201 The general rules of interpretation of contracts apply to insurance po
licies.
f0 \fi281 {\b \f10 \fs25 4.5.1}{\b \f10 \fs25 Intention}{\b \f10 \fs25 of}{\b
\f10 \fs25 the}{\b \f10 \fs25 Parties }
f0 \fi344 The first rule of interpretation of contracts is that the court will c
onsider the contract as a whole \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 8 \par
}
}
s21 \cf0 to search for an interpretation that is consistent with and promotes th
e intention of the parties to
fi344 the contract. (Consolidated Bathurst v Mutual Boiler & Machinery, [1980] 1
S.C.R. 888) The
fi344 application of this general rule is not, however, always straight forward.
f0 \fi281 {\b \f10 \fs25 4.5.2}{\b \f10 \fs25 Narrow}{\b \f10 \fs25 Constructi
on}{\b \f10 \fs25 of}{\b \f10 \fs25 Exceptions }
f0 \fi485 Generally, courts tend to broadly interpret coverage clauses and narro
wly interpret exclusions.
fi485 ( Reid Crowther v Simcoe & Erie General Insurance (1993)13 C.C.L.I. (2d) 1
6)
f0 \fi281 {\b \f10 \fs25 4.5.3}{\b \f10 \fs25 Contra}{\b \f10 \fs25 Proferente
m }
f0 \fi201 If there is any ambiguity in the policy, such ambiguity is almost alwa
ys resolved in favour of an
fi201 interpretation that benefits the insured. This is an application of the do
ctrine known as contra
fi201 proferentem, which means the words of a contract should be interpreted aga
inst the interests of
fi201 the person who drafted it.
f0 \fi201 A review of the cases interpreting marine insurance policies will unco
ver many cases where the
fi201 courts seem to have used the doctrine of contra proferentem as a tool to a
void the plain meaning

fi201 of the policy and the intention of the parties as disclosed by the words u
sed. Further, such a
fi201 review might lead one to believe that the doctrine of contra proferentem i
s the first rule of
fi201 interpretation of insurance contracts. This is, however, not the case. Con
solidated Bathurst makes
fi201 it very clear that the doctrine of contra proferentem is but one tool to d
etermine the true intent of
fi201 the parties. The approach set out in Consolidated Bathurst was recently re
stated by the Supreme
fi201 Court of Canada in Bristle v Westbury Life Insurance Co., (1992) 13 C.C.L.
I. (2d) 1. In that case
fi201 the Supreme Court noted that where two or more meanings are possible the c
ourt should select
fi201 the meaning that promotes the intent of the parties. Further, the Supreme
Court specifically said
fi201 that courts should avoid an interpretation which will give either a windfa
ll to the insurer or an
fi201 unanticipated recovery to the insured.
f0 {\b\i \f10 \fs25 4.6}{\b\i \f10 \fs25 The}{\b\i \f10 \fs25 Premium}{\b\i \f
10 \fs25 ss.}{\b\i \f10 \fs25 47-50}{\b\i \f10 \fs25 MIA }
f0 \fi281 {\b \f10 \fs25 4.6.1}{\b \f10 \fs25 Amount}{\b \f10 \fs25 of}{\b \f
10 \fs25 Premium}{\b \f10 \fs25 s.47}{\b \f10 \fs25 MIA }
f0 \fi485 If the premium is not specified in the policy a reasonable premium is
payable.
f0 \fi281 {\b \f10 \fs25 4.6.2}{\b \f10 \fs25 Obligation}{\b \f10 \fs25 to}{\b
\f10 \fs25 Pay}{\b \f10 \fs25 ss.48}{\b \f10 \fs25 &}{\b \f10 \fs25 49}{\b
\f10 \fs25 MIA }
f0 \fi485 The obligation to pay the premium is the assured's although the broker
can also be liable if it
fi485 effects the policy on behalf of the assured.
f0 \fi281 {\b \f10 \fs25 4.6.3}{\b \f10 \fs25 Return}{\b \f10 \fs25 of}{\b \f1
0 \fs25 Premium}{\b \f10 \fs25 ss.82-85}{\b \f10 \fs25 MIA }
f0 \fi485 A premium or part thereof is returnable to the assured where the polic
y contains a provision
fi485 requiring the premium to be returned upon the happening of an event and th
at event happens.
fi485 (s.83 MIA) \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 9 \par
}
}
A premium or part thereof is returnable to the assured where there has been a to
tal failure of
\par}{\phpg\posx1986\pvpg\posy1756\absw9392\absh9272 \sl-274 \f20 \fs21 \cf0 con
sideration and there is no fraud or illegality on the part of the assured. (s.84
MIA)
A premium or part thereof is returnable to the assured where the circumstances
described in
\par}{\phpg\posx1986\pvpg\posy1756\absw9392\absh9272 \sl-273 \f20 \fs21 \cf0 sub
sections 2 through 11 of s. 85 MIA apply:
\fi707 {\fs19 (2)}{\fs19 Where}{\fs19 a}{\fs19 marine}{\fs19 policy}{\fs19
is}{\fs19 void,}{\fs19 or}{\fs19 is}{\fs19 avoided}{\fs19 by}{\fs19 the}{
\fs19 insurer}{\fs19 as}{\fs19 of}{\fs19 the }
707 {\fs19 commencement}{\fs19 of}{\fs19 the}{\fs19 risk,}{\fs19 and}{\fs19
there}{\fs19 is}{\fs19 no}{\fs19 fraud}{\fs19 or}{\fs19 illegality}{\fs19
on}{\fs19 the}{\fs19 part}{\fs19 of}{\fs19 the }
707 {\fs19 insured}{\fs19 or}{\fs19 the}{\fs19 insured's}{\fs19 agent,}{\fs1
9 the}{\fs19 premium}{\fs19 is}{\fs19 returnable. }
707 {\fs19 (3)}{\fs19 Where}{\fs19 the}{\fs19 risk}{\fs19 is}{\fs19 not}{\f
s19 apportionable}{\fs19 and}{\fs19 has}{\fs19 once}{\fs19 attached,}{\fs19
subsection}{\fs19 (2)}{\fs19 does }
707 {\fs19 not}{\fs19 apply}{\fs19 and}{\fs19 the}{\fs19 premium}{\fs19 is}
{\fs19 not}{\fs19 returnable. }
707 {\fs19 (4)}{\fs19 Where}{\fs19 the}{\fs19 subject-matter}{\fs19 insured}
{\fs19 or}{\fs19 part}{\fs19 of}{\fs19 the}{\fs19 subject-matter}{\fs19 in
sured}{\fs19 has }
707 {\fs19 never}{\fs19 been}{\fs19 exposed}{\fs19 to}{\fs19 any}{\fs19 per
il}{\fs19 insured}{\fs19 against,}{\fs19 the}{\fs19 premium}{\fs19 or}{\fs1
9 a}{\fs19 proportionate }
707 {\fs19 part}{\fs19 of}{\fs19 the}{\fs19 premium,}{\fs19 as}{\fs19 the}{
\fs19 case}{\fs19 may}{\fs19 be,}{\fs19 is}{\fs19 returnable. }
707 {\fs19 (5)}{\fs19 Where}{\fs19 the}{\fs19 subject-matter}{\fs19 is}{\fs1
9 insured}{\fs19 "lost}{\fs19 or}{\fs19 not}{\fs19 lost"}{\fs19 and}{\fs19
has}{\fs19 arrived}{\fs19 at}{\fs19 its }
707 {\fs19 destination}{\fs19 safely}{\fs19 before}{\fs19 the}{\fs19 contrac
t}{\fs19 is}{\fs19 concluded,}{\fs19 subsection}{\fs19 (4)}{\fs19 does}{\fs
19 not}{\fs19 apply }
707 {\fs19 and}{\fs19 the}{\fs19 premium}{\fs19 is}{\fs19 not}{\fs19 return
able}{\fs19 unless,}{\fs19 at}{\fs19 the}{\fs19 time}{\fs19 the}{\fs19 con
tract}{\fs19 is}{\fs19 concluded, }
707 {\fs19 the}{\fs19 insurer}{\fs19 knows}{\fs19 of}{\fs19 the}{\fs19 safe
}{\fs19 arrival. }
707 {\fs19 (6)}{\fs19 Where}{\fs19 an}{\fs19 insured}{\fs19 has}{\fs19 no}{
\fs19 insurable}{\fs19 interest}{\fs19 throughout}{\fs19 the}{\fs19 period}
{\fs19 of}{\fs19 the}{\fs19 risk, }
707 {\fs19 the}{\fs19 premium}{\fs19 is}{\fs19 returnable. }
707 {\fs19 (7)}{\fs19 Subsection}{\fs19 (6)}{\fs19 does}{\fs19 not}{\fs19 a
pply}{\fs19 in}{\fs19 respect}{\fs19 of}{\fs19 a}{\fs19 contract}{\fs19 by
}{\fs19 way}{\fs19 of}{\fs19 gaming}{\fs19 or }
707 {\fs19 wagering}{\fs19 and}{\fs19 the}{\fs19 premium}{\fs19 is}{\fs19 n
ot}{\fs19 returnable. }
707 {\fs19 (8)}{\fs19 Where}{\fs19 an}{\fs19 insured}{\fs19 is}{\fs19 overinsured}{\fs19 under}{\fs19 an}{\fs19 unvalued}{\fs19 policy,}{\fs19 a}{\fs
19 proportionate }
707 {\fs19 part}{\fs19 of}{\fs19 the}{\fs19 premium}{\fs19 is}{\fs19 return
able. }
707 {\fs19 (9)}{\fs19 Where}{\fs19 an}{\fs19 insured}{\fs19 has}{\fs19 a}{\
fs19 defeasible}{\fs19 interest}{\fs19 in}{\fs19 the}{\fs19 subject-matter}
{\fs19 insured}{\fs19 that}{\fs19 is }
707 {\fs19 terminated}{\fs19 during}{\fs19 the}{\fs19 period}{\fs19 of}{\fs1
9 the}{\fs19 risk,}{\fs19 the}{\fs19 premium}{\fs19 is}{\fs19 not}{\fs19
returnable. }
707 {\fs19 (10)}{\fs19 Subject}{\fs19 to}{\fs19 subsections}{\fs19 (2)}{\fs1
9 to}{\fs19 (9),}{\fs19 where}{\fs19 an}{\fs19 insured}{\fs19 is}{\fs19 o
ver-insured}{\fs19 by}{\fs19 double }
707 {\fs19 insurance,}{\fs19 a}{\fs19 proportionate}{\fs19 part}{\fs19 of}{\
fs19 the}{\fs19 premiums}{\fs19 is}{\fs19 returnable. }
707 {\fs19 (11)}{\fs19 Subsection}{\fs19 (10)}{\fs19 does}{\fs19 not}{\fs19
apply }
1417 {\fs19 (a)}{\fs19 where}{\fs19 the}{\fs19 double}{\fs19 insurance}{\fs1
9 is}{\fs19 knowingly}{\fs19 effected}{\fs19 by}{\fs19 the}{\fs19 insured,
}{\fs19 in }
1417 {\fs19 which}{\fs19 case}{\fs19 none}{\fs19 of}{\fs19 the}{\fs19 premi
ums}{\fs19 is}{\fs19 returnable;}{\fs19 and }
1417 {\fs19 (b)}{\fs19 where}{\fs19 the}{\fs19 policies}{\fs19 are}{\fs19 e
ffected}{\fs19 at}{\fs19 different}{\fs19 times}{\fs19 and}{\fs19 either}{\
fs19 the}{\fs19 earlier }
1417 {\fs19 policy}{\fs19 has}{\fs19 at}{\fs19 any}{\fs19 time}{\fs19 borne
}{\fs19 the}{\fs19 entire}{\fs19 risk}{\fs19 or}{\fs19 a}{\fs19 claim}{\fs
19 has}{\fs19 been}{\fs19 paid}{\fs19 on }
1417 {\fs19 the}{\fs19 earlier}{\fs19 policy}{\fs19 in}{\fs19 respect}{\fs19
of}{\fs19 the}{\fs19 full}{\fs19 sum}{\fs19 insured}{\fs19 by}{\fs19 it,
}{\fs19 in}{\fs19 which}{\fs19 case}{\fs19 the }
1417 {\fs19 premium}{\fs19 for}{\fs19 the}{\fs19 earlier}{\fs19 policy}{\fs1
9 is}{\fs19 not}{\fs19 returnable}{\fs19 and}{\fs19 the}{\fs19 premium}{\f
s19 for}{\fs19 the }
1417 {\fs19 later}{\fs19 policy}{\fs19 is}{\fs19 returnable. }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 10 \par
}
}
\cf0 4.6.4 If Insurer Fails to Return Premium
cf0 \fi62 {\b0 \f20 \fs21 It}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 vitally}{\b0 \
f20 \fs21 important}{\b0 \f20 \fs21 that}{\b0 \f20 \fs21 an}{\b0 \f20 \fs21
insurer}{\b0 \f20 \fs21 return}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 premium}{\
b0 \f20 \fs21 when}{\b0 \f20 \fs21 required}{\b0 \f20 \fs21 to}{\b0 \f20 \fs2
1 do}{\b0 \f20 \fs21 so.}{\b0 \f20 \fs21 This}{\b0 \f20 \fs21 is}{\b0 \f20 \
fs21 so }
\fi62 {\b0 \f20 \fs21 because}{\b0 \f20 \fs21 many}{\b0 \f20 \fs21 breaches}{\
b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 express}{\b0 \f20 \fs21
or}{\b0 \f20 \fs21 implied}{\b0 \f20 \fs21 terms}{\b0 \f20 \fs21 of}{\b0 \f2
0 \fs21 the}{\b0 \f20 \fs21 policy}{\b0 \f20 \fs21 (}{\b0 \f20 \fs21 i.e.}{\
b0 \f20 \fs21 non-disclosure}{\b0 \f20 \fs21 or }
\fi62 {\b0 \f20 \fs21 misrepresentation)}{\b0 \f20 \fs21 have}{\b0 \f20 \fs21
the}{\b0 \f20 \fs21 effect}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 giving}{\b0 \f2
0 \fs21 the}{\b0 \f20 \fs21 insurer}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 righ
t}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 elect}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21
void}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 contract }
\fi62 {\b0 \f20 \fs21 rather}{\b0 \f20 \fs21 than}{\b0 \f20 \fs21 voiding}{\b0
\f20 \fs21 the}{\b0 \f20 \fs21 contract}{\b0\i \f20 \fs21 ab}{\b0\i \f20 \fs
21 initio}{\b0 \f20 \fs21 .}{\b0 \f20 \fs21 The}{\b0 \f20 \fs21 return}{\b0 \
f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 premium}{\b0 \f20 \fs21 is}
{\b0 \f20 \fs21 evidence}{\b0 \f20 \fs21 that}{\b0 \f20 \fs21 the}{\b0 \f20 \
fs21 insurer }
\fi62 {\b0 \f20 \fs21 elects}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 treat}{\b0 \f2
0 \fs21 the}{\b0 \f20 \fs21 insurance}{\b0 \f20 \fs21 contract}{\b0 \f20 \fs2
1 as}{\b0 \f20 \fs21 void.}{\b0 \f20 \fs21 An}{\b0 \f20 \fs21 insurer}{\b0 \
f20 \fs21 who}{\b0 \f20 \fs21 fails}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 retur
n}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 premium}{\b0 \f20 \fs21 will}{\b0 \f20
\fs21 be }
\fi62 {\b0 \f20 \fs21 held}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 have}{\b0 \f20 \
fs21 waived}{\b0 \f20 \fs21 its}{\b0 \f20 \fs21 right}{\b0 \f20 \fs21 to}{\b
0 \f20 \fs21 treat}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 contract}{\b0 \f20 \fs
21 as}{\b0 \f20 \fs21 voided.}{\b0 \f20 \fs21 (Neepawa}{\b0 \f20 \fs21 Yacht
}{\b0 \f20 \fs21 v}{\b0 \f20 \fs21 Laurentian }
\fi62 {\b0 \f20 \fs21 Insurance,}{\b0 \f20 \fs21 (1994)}{\b0 \f20 \fs21 D.R.S.
}{\b0 \f20 \fs21 95-04330;}{\b0 \f20 \fs21 Harold}{\b0 \f20 \fs21 A}{\b0 \f20
\fs21 Burner}{\b0 \f20 \fs21 v}{\b0 \f20 \fs21 Sun}{\b0 \f20 \fs21 Insuranc
e,}{\b0 \f20 \fs21 [1952]}{\b0 \f20 \fs21 I.L.R.}{\b0 \f20 \fs21 1-069) }\par
}
\cf0 5 Utmost Good Faith, Misrepresentation and Disclosure
cf0 \fi274 {\i \fs25 5.1}{\i \fs25 Utmost}{\i \fs25 Good}{\i \fs25 Faith}{\i
\fs25 s.20}{\i \fs25 MIA }
cf0 \fi1186 {\b0 \f20 \fs21 20.}{\b0 \f20 \fs21 A}{\b0 \f20 \fs21 contract}{\b
0 \f20 \fs21 is}{\b0 \f20 \fs21 based}{\b0 \f20 \fs21 on}{\b0 \f20 \fs21 the
}{\b0 \f20 \fs21 utmost}{\b0 \f20 \fs21 good}{\b0 \f20 \fs21 faith}{\b0 \f20
\fs21 and,}{\b0 \f20 \fs21 if}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 utmost}{\b
0 \f20 \fs21 good}{\b0 \f20 \fs21 faith}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 n
ot }
\fi1186 {\b0 \f20 \fs21 observed}{\b0 \f20 \fs21 by}{\b0 \f20 \fs21 either}{\b
0 \f20 \fs21 party,}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 contract}{\b0 \f20 \f
s21 may}{\b0 \f20 \fs21 be}{\b0 \f20 \fs21 avoided}{\b0 \f20 \fs21 by}{\b0 \
f20 \fs21 the}{\b0 \f20 \fs21 other}{\b0 \f20 \fs21 party. }

cf0 \fi274 {\i \fs25 5.2}{\i \fs25 Disclosure}{\i \fs25 s.21}{\i \fs25 MIA}{\
i \fs25 "material}{\i \fs25 circumstances" }
cf0 \fi476 {\b0 \f20 \fs21 The}{\b0 \f20 \fs21 disclosure}{\b0 \f20 \fs21 requ
irements}{\b0 \f20 \fs21 are}{\b0 \f20 \fs21 set}{\b0 \f20 \fs21 out}{\b0 \f2
0 \fs21 in}{\b0 \f20 \fs21 s.}{\b0 \f20 \fs21 21}{\b0 \f20 \fs21 MIA}{\b0 \f
20 \fs21 as}{\b0 \f20 \fs21 follows: }
cf0 \fi1186 {\b0 \f20 \fs19 21.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 Subject}{\
b0 \f20 \fs19 to}{\b0 \f20 \fs19 this}{\b0 \f20 \fs19 section,}{\b0 \f20 \fs1
9 an}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 must}{\b0 \f20 \fs19 disclose}{
\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insurer,}{\b0 \f20 \fs1
9 before}{\b0 \f20 \fs19 the }
\fi1186 {\b0 \f20 \fs19 contract}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 concluded,
}{\b0 \f20 \fs19 every}{\b0 \f20 \fs19 material}{\b0 \f20 \fs19 circumstance}
{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 known}{\b0 \f20 \fs19
to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insured. }
\fi1186 {\b0 \f20 \fs19 (2)}{\b0 \f20 \fs19 Subject}{\b0 \f20 \fs19 to}{\b0 \f
20 \fs19 this}{\b0 \f20 \fs19 section,}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 ag
ent}{\b0 \f20 \fs19 who}{\b0 \f20 \fs19 effects}{\b0 \f20 \fs19 insurance}{\b
0 \f20 \fs19 for}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19
must }
\fi1186 {\b0 \f20 \fs19 disclose}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \
f20 \fs19 insurer,}{\b0 \f20 \fs19 before}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19
contract}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 concluded, }
\fi1186 {\b0 \f20 \fs19 (a)}{\b0 \f20 \fs19 every}{\b0 \f20 \fs19 material}{\b
0 \f20 \fs19 circumstance}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 is}{\b0 \f20 \
fs19 known}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 agent;}{\b
0 \f20 \fs19 and }
\fi1186 {\b0 \f20 \fs19 (b)}{\b0 \f20 \fs19 every}{\b0 \f20 \fs19 material}{\b
0 \f20 \fs19 circumstance}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 insured}{\b0 \f20 \fs19 must}{\b0 \f20 \fs19 disclose,}{\b0 \f20 \fs19
unless}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insured }
\fi1186 {\b0 \f20 \fs19 learned}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 it}{\b0 \f2
0 \fs19 too}{\b0 \f20 \fs19 late}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 communic
ate}{\b0 \f20 \fs19 it}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19
agent. }
\fi1186 {\b0 \f20 \fs19 (3)}{\b0 \f20 \fs19 A}{\b0 \f20 \fs19 circumstance}{\b
0 \f20 \fs19 is}{\b0 \f20 \fs19 material}{\b0 \f20 \fs19 if}{\b0 \f20 \fs19
it}{\b0 \f20 \fs19 would}{\b0 \f20 \fs19 influence}{\b0 \f20 \fs19 the}{\b0 \
f20 \fs19 judgement}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 pru
dent }
\fi1186 {\b0 \f20 \fs19 insurer}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 fixing}{\b0
\f20 \fs19 the}{\b0 \f20 \fs19 premium}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 d
etermining}{\b0 \f20 \fs19 whether}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 take}{\
b0 \f20 \fs19 the}{\b0 \f20 \fs19 risk. }
\fi1186 {\b0 \f20 \fs19 (4)}{\b0 \f20 \fs19 Whether}{\b0 \f20 \fs19 any}{\b0 \
f20 \fs19 circumstance}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 is}{\b0 \f20 \fs1
9 not}{\b0 \f20 \fs19 disclosed}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 material}
{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 not}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 a}
{\b0 \f20 \fs19 question}{\b0 \f20 \fs19 of }

\fi1186 {\b0 \f20 \fs19 fact. }
\fi1186 {\b0 \f20 \fs19 (5)}{\b0 \f20 \fs19 In}{\b0 \f20 \fs19 the}{\b0 \f20 \
fs19 absence}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 inquiry,
}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 following}{\b0 \f20 \fs19 circumstances}
{\b0 \f20 \fs19 need}{\b0 \f20 \fs19 not}{\b0 \f20 \fs19 be}{\b0 \f20 \fs19
disclosed: }
\fi1186 {\b0 \f20 \fs19 (a)}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 circumstance}{
\b0 \f20 \fs19 that}{\b0 \f20 \fs19 diminishes}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 risk; }
\fi1186 {\b0 \f20 \fs19 (b)}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 circumstance}{
\b0 \f20 \fs19 that}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 known}{\b0 \f20 \fs19
to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insurer; }
\fi1186 {\b0 \f20 \fs19 (c)}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 circumstance}{
\b0 \f20 \fs19 as}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 which}{\b0 \f20 \fs19 i
nformation}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 waived}{\b0 \f20 \fs19 by}{\b0
\f20 \fs19 the}{\b0 \f20 \fs19 insurer;}{\b0 \f20 \fs19 and }
\fi1186 {\b0 \f20 \fs19 (d)}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 circumstance}{
\b0 \f20 \fs19 the}{\b0 \f20 \fs19 disclosure}{\b0 \f20 \fs19 of}{\b0 \f20 \f
s19 which}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 superfluous}{\b0 \f20 \fs19 by}
{\b0 \f20 \fs19 reason}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19
express }
\fi1186 {\b0 \f20 \fs19 warranty}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 implied}{\
b0 \f20 \fs19 warranty. }
\fi1186 {\b0 \f20 \fs19 (6)}{\b0 \f20 \fs19 For}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 purposes}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 this}{\b0 \f20 \fs19 secti
on, }
\fi1186 {\b0 \f20 \fs19 (a)}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 insured}{\b0 \f
20 \fs19 is}{\b0 \f20 \fs19 deemed}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 know}{
\b0 \f20 \fs19 every}{\b0 \f20 \fs19 circumstance}{\b0 \f20 \fs19 that,}{\b0
\f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 ordinary}{\b0 \f20 \fs19 c
ourse}{\b0 \f20 \fs19 of }
\fi1186 {\b0 \f20 \fs19 business,}{\b0 \f20 \fs19 ought}{\b0 \f20 \fs19 to}{\b
0 \f20 \fs19 be}{\b0 \f20 \fs19 known}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 the
}{\b0 \f20 \fs19 insured; }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 11 \par
}
}
s19 \cf0 (b) an agent is deemed to know every circumstance that, in the ordinary
course of
fi911 business, ought to be known by, or to have been communicated to, the agent
; and
fi911 (c) an insurer is presumed to know circumstances of common notoriety and e
very
fi911 circumstance that, in the ordinary course of an insurer's business, ought
to be known
fi911 by an insurer.
fi911 (7) If an insured or an agent of an insured fails to make a disclosure as
required by
fi911 this section, the insurer may avoid the contract.
fi911 (8) In this section, "circumstance" includes any communication made to, or
fi911 information received by, the insured.
f0 \fi201 {\fs21 The}{\fs21 following}{\fs21 points}{\fs21 should}{\fs21 be}
{\fs21 noted: }
f0 \fi1054 {\f0\fs21 \bullet }{\f40 \fs16 }{\fs21
The}{\fs21 insured}{\fs21
is}{\fs21 obligated}{\fs21 to}{\fs21 disclose}{\fs21 to}{\fs21 the}{\fs21
insurer}{\fs21 every}{\fs21 material}{\fs21 circumstance. }
A}{\fs21 circumstance}{\f
s21 or}{\fs21 fact}{\fs21 is}{\fs21 material}{\fs21 if}{\fs21 it}{\fs21 w
ould}{\fs21 affect}{\fs21 either}{\fs21 the}{\fs21 premium}{\fs21 or}{\fs21
the}{\fs21 decision }
fi1336 {\fs21 to}{\fs21 accept}{\fs21 the}{\fs21 risk. }
The}{\fs21 disclosure}{\f
s21 must}{\fs21 be}{\fs21 made}{\fs21 before}{\fs21 the}{\fs21 contract}{\
fs21 is}{\fs21 concluded. }
Failure}{\fs21 to}{\fs21
properly}{\fs21 disclose}{\fs21 material}{\fs21 facts}{\fs21 entitles}{\fs2
1 the}{\fs21 insurer}{\fs21 to}{\fs21 avoid}{\fs21 the}{\fs21 contract. }

fi1336 {\fs21 The}{\fs21 contract}{\fs21 is}{\fs21 not}{\fs21 automatically}
{\fs21 terminated,}{\fs21 the}{\fs21 insurer}{\fs21 must}{\fs21 elect}{\fs2
1 to}{\fs21 avoid}{\fs21 it}{\fs21 and }
fi1336 {\fs21 must}{\fs21 return}{\fs21 the}{\fs21 premium. }
f0 {\b\i \f10 \fs25 5.3}{\b\i \f10 \fs25 Misrepresentation}{\b\i \f10 \fs25 s.
}{\b\i \f10 \fs25 22}{\b\i \f10 \fs25 MIA }
f0 \fi201 {\fs21 Misrepresentations}{\fs21 by}{\fs21 the}{\fs21 assured}{\fs2
1 are}{\fs21 dealt}{\fs21 with}{\fs21 in}{\fs21 s.}{\fs21 22}{\fs21 MIA}{
\fs21 as}{\fs21 follows: }
f0 \fi1193 22. (1) Every material representation made by the insured or the insu
red's agent to
fi1193 the insurer during the negotiations for the contract and before the contr
act is
fi1193 concluded must be true.
fi1193 (2) A representation is material if it would influence the judgement of a
prudent
fi1193 insurer in fixing the premium or determining whether to take the risk.
fi1193 (3) Whether any representation is material or not is a question of fact.
fi1193 (4) A representation may be as to a matter of fact or as to a matter of e
xpectation
fi1193 or belief.
fi1193 (5) A representation as to a matter of fact is deemed to be true if the d
ifference
fi1193 between what is represented and what is actually correct would not be con
sidered
fi1193 material by a prudent insurer.
fi1193 (6) A representation as to a matter of expectation or belief is deemed to
be true if
fi1193 it is made in good faith.
fi1193 (7) A representation may be withdrawn or corrected before a contract is
fi1193 concluded.
fi1193 (8) If any material representation made by the insured or the insured's a
gent to the
fi1193 insurer during the negotiations for the contract is not true and is not w
ithdrawn or
fi1193 corrected before the contract is concluded, the insurer may avoid the con
tract. \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi850 {\b0\i0 The}{\b0\i0 following}{\b0\i0 points}{\b0\i0 should}{\b0\
i0 be}{\b0\i0 noted: }\par
}
cf0 12 \par
}
}
{\phpg\posx1500\pvpg\posy2314\absw10186\absh8429 \f40 \fs16 \cf0 \fi1054 {\f0\fs
21 \bullet }\f40 \fs16 \cf0 {\f20 \fs21
The}{\f20 \fs21 misrepresentation}{
\f20 \fs21 must}{\f20 \fs21 have}{\f20 \fs21 been}{\f20 \fs21 made}{\f20 \fs
21 during}{\f20 \fs21 the}{\f20 \fs21 negotiations}{\f20 \fs21 and}{\f20 \fs
21 must}{\f20 \fs21 not }
i1336 {\f20 \fs21 have}{\f20 \fs21 been}{\f20 \fs21 withdrawn}{\f20 \fs21 or}
{\f20 \fs21 corrected}{\f20 \fs21 before}{\f20 \fs21 the}{\f20 \fs21 contrac
t}{\f20 \fs21 is}{\f20 \fs21 concluded. }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
A}{\f20 \fs21 representation}{\f20
\fs21 is}{\f20 \fs21 material}{\f20 \fs21 if}{\f20 \fs21 it}{\f20 \fs21 wo
uld}{\f20 \fs21 affect}{\f20 \fs21 either}{\f20 \fs21 the}{\f20 \fs21 premiu
m}{\f20 \fs21 or}{\f20 \fs21 the}{\f20 \fs21 decision}{\f20 \fs21 to }
i1336 {\f20 \fs21 accept}{\f20 \fs21 the}{\f20 \fs21 risk. }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
Representations}{\f20 \fs21 are}{\
f20 \fs21 not}{\f20 \fs21 limited}{\f20 \fs21 to}{\f20 \fs21 questions}{\f20
\fs21 of}{\f20 \fs21 fact}{\f20 \fs21 but}{\f20 \fs21 can}{\f20 \fs21 also
}{\f20 \fs21 relate}{\f20 \fs21 to}{\f20 \fs21 expectations }
i1336 {\f20 \fs21 or}{\f20 \fs21 beliefs}{\f20 \fs21 although}{\f20 \fs21 the
}{\f20 \fs21 latter}{\f20 \fs21 are}{\f20 \fs21 deemed}{\f20 \fs21 to}{\f20
\fs21 be}{\f20 \fs21 true}{\f20 \fs21 if}{\f20 \fs21 made}{\f20 \fs21 in}{\
f20 \fs21 good}{\f20 \fs21 faith. }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21

A}{\f20 \fs21 material}{\f20 \fs21
misrepresentation}{\f20 \fs21 entitles}{\f20 \fs21 the}{\f20 \fs21 insurer}
{\f20 \fs21 to}{\f20 \fs21 avoid}{\f20 \fs21 the}{\f20 \fs21 contract.}{\f20
\fs21 The}{\f20 \fs21 contract}{\f20 \fs21 is }
i1336 {\f20 \fs21 not}{\f20 \fs21 automatically}{\f20 \fs21 terminated,}{\f20
\fs21 the}{\f20 \fs21 insurer}{\f20 \fs21 must}{\f20 \fs21 elect}{\f20 \fs21
to}{\f20 \fs21 avoid}{\f20 \fs21 it}{\f20 \fs21 and}{\f20 \fs21 must}{\f20
\fs21 return}{\f20 \fs21 the }
i1336 {\f20 \fs21 premium. }
0 {\b\i \f10 \fs25 5.4}{\b\i \f10 \fs25 Examples}{\b\i \f10 \fs25 of}{\b\i \f1
0 \fs25 Material}{\b\i \f10 \fs25 Facts }
0 \fi201 {\f20 \fs21 The}{\f20 \fs21 following}{\f20 \fs21 examples}{\f20 \fs2
1 of}{\f20 \fs21 material}{\f20 \fs21 are}{\f20 \fs21 taken}{\f20 \fs21 fro
m}{\f20 \fs21 Strathy}{\f20 \fs21 &}{\f20 \fs21 Moore,}{\f20 \fs21 {\ul L}{\
ul a}{\ul w}}{\f20 \fs21 {\ul }{\ul a}{\ul n}{\ul d}}{\f20 \fs21 {\ul }{\ul P}
{\ul r}{\ul a}{\ul c}{\ul t}{\ul i}{\ul c}{\ul e}}{\f20 \fs21 {\ul }{\ul o}{\ul
f}}{\f20 \fs21 {\ul }{\ul M}{\ul a}{\ul r}{\ul i}{\ul n}e }
i201 {\f20 \fs21 {\ul I}{\ul n}{\ul s}{\ul u}{\ul r}{\ul a}{\ul n}{\ul c}{\ul e}
}{\f20 \fs21 {\ul }{\ul i}{\ul n}}{\f20 \fs21 {\ul }{\ul C}{\ul a}{\ul n}{\ul
a}{\ul d}{\ul a}{\ul ,}}{\f20 \fs21 {\ul }{\ul a}{\ul t}}{\f20 \fs21 {\ul }{\u
l p}{\ul p}{\ul .}}{\f20 \fs21 {\ul }{\ul 5}{\ul 6}{\ul -}{\ul 5}{\ul 7}: }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
whether}{\f20 \fs21 the}{\f20 \fs2
1 ship}{\f20 \fs21 was}{\f20 \fs21 missing}{\f20 \fs21 at}{\f20 \fs21 the}{
\f20 \fs21 time}{\f20 \fs21 the}{\f20 \fs21 risk}{\f20 \fs21 was}{\f20 \fs21
placed; }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
that}{\f20 \fs21 the}{\f20 \fs21
ship}{\f20 \fs21 had}{\f20 \fs21 gone}{\f20 \fs21 into}{\f20 \fs21 port}{\f2
0 \fs21 for}{\f20 \fs21 repairs}{\f20 \fs21 at}{\f20 \fs21 the}{\f20 \fs21
commencement}{\f20 \fs21 of}{\f20 \fs21 the}{\f20 \fs21 voyage; }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
ship}{\f20 \fs21 had}{\f20 \fs21 gone}{\f20 \fs21 aground}{\f20 \fs21 and}{\
f20 \fs21 was}{\f20 \fs21 leaking; }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
the}{\f20 \fs21 age}{\f20 \fs21 o
f}{\f20 \fs21 the}{\f20 \fs21 vessel; }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
vessel}{\f20 \fs21 was}{\f20 \fs21 to}{\f20 \fs21 be}{\f20 \fs21 towed}{\f20
\fs21 up}{\f20 \fs21 and}{\f20 \fs21 down}{\f20 \fs21 river; }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
that}{\f20 \fs21 two}{\f20 \fs21
scows}{\f20 \fs21 were}{\f20 \fs21 towed}{\f20 \fs21 together,}{\f20 \fs21 r
ather}{\f20 \fs21 than}{\f20 \fs21 singly; }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21
vessel}{\f20 \fs21 was}{\f20 \fs21 generally}{\f20 \fs21 weak}{\f20 \fs21 an
d}{\f20 \fs21 did}{\f20 \fs21 not}{\f20 \fs21 have}{\f20 \fs21 a}{\f20 \fs21
certificate}{\f20 \fs21 required}{\f20 \fs21 under}{\f20 \fs21 the }
i1336 {\f20 \fs21 Canada}{\f20 \fs21 Shipping}{\f20 \fs21 Act;}{\f20 \fs21 an
d }
0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21

the}{\f20 \fs21 unfavourable}{\f20
\fs21 claims}{\f20 \fs21 history}{\f20 \fs21 of}{\f20 \fs21 the}{\f20 \fs21
insured. }\par
}
{\phpg\posx1225\pvpg\posy12638\absw10245\absh1724 \b \f10 \fs29 \cf0 \b \f10 \fs
29 \cf0 6 Insurable interest ss.7-19 MIA
\cf0 \fi192 {\b0 \f20 \fs21 The}{\b0 \f20 \fs21 MIA}{\b0 \f20 \fs21 s.}{\b0 \
f20 \fs21 7}{\b0 \f20 \fs21 requires}{\b0 \f20 \fs21 that}{\b0 \f20 \fs21 th
e}{\b0 \f20 \fs21 assured}{\b0 \f20 \fs21 have}{\b0 \f20 \fs21 an}{\b0 \f20 \
fs21 insurable}{\b0 \f20 \fs21 interest}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 t
he}{\b0 \f20 \fs21 subject}{\b0 \f20 \fs21 matter}{\b0 \f20 \fs21 of}{\b0 \f2
0 \fs21 the}{\b0 \f20 \fs21 marine }
\par}{\phpg\posx1225\pvpg\posy12638\absw10245\absh1724 \sl-274 \b \f10 \fs29 \cf
0 \fi192 {\b0 \f20 \fs21 insurance}{\b0 \f20 \fs21 contract.}{\b0 \f20 \fs21 T
his}{\b0 \f20 \fs21 requirement}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 to}{\b0 \f
20 \fs21 prevent}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 contract}{\b0 \f20 \fs21
from}{\b0 \f20 \fs21 being}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 gaming}{\b0 \f
20 \fs21 or}{\b0 \f20 \fs21 wagering }
0 \fi192 {\b0 \f20 \fs21 contract. }
\cf0 \fi192 {\b0 \f20 \fs21 Insurable}{\b0 \f20 \fs21 interest}{\b0 \f20 \fs21
is}{\b0 \f20 \fs21 defined}{\b0 \f20 \fs21 relatively}{\b0 \f20 \fs21 broad
ly}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 s.}{\b0 \f20 \fs21 8}{\b0 \f20 \fs21 M
IA: }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 13 \par
}
}
fs19 \cf0 8. (1) Subject to this Act, a person who has an interest in a marine a
dventure has an
fi1186 insurable interest.

fi1186 (2) A person has an interest in a marine adventure if the person has a le
gal or
fi1186 equitable relation to the adventure, or to any insurable property at risk
in the
fi1186 adventure, and may benefit from the safety or due arrival of insurable pr
operty, may
fi1186 be prejudiced by its loss, damage or detention or may incur liability in
respect of it.
f0 \fi476 {\fs21 An}{\fs21 insurable}{\fs21 interest}{\fs21 can}{\fs21 be}{\
fs21 defeasible}{\fs21 or}{\fs21 contingent}{\fs21 (s.9)}{\fs21 or}{\fs21
a}{\fs21 partial}{\fs21 interest}{\fs21 (s.10).}{\fs21 The}{\fs21 master }
fi476 {\fs21 and}{\fs21 crew}{\fs21 have}{\fs21 an}{\fs21 insurable}{\fs21
interest}{\fs21 for}{\fs21 their}{\fs21 wages}{\fs21 (s.11).}{\fs21 A}{\fs2
1 person}{\fs21 who}{\fs21 advances}{\fs21 freight}{\fs21 also}{\fs21 has
}
fi476 {\fs21 an}{\fs21 insurable}{\fs21 interest}{\fs21 (s.12)}{\fs21 as}{\f
s21 does}{\fs21 a}{\fs21 mortgagee}{\fs21 (s.16). }
f0 \fi476 {\fs21 If}{\fs21 the}{\fs21 assured}{\fs21 does}{\fs21 not}{\fs21
have}{\fs21 an}{\fs21 insurable}{\fs21 interest,}{\fs21 the}{\fs21 policy}
{\fs21 is}{\fs21 void.}{\fs21 (s.18}{\fs21 MIA) }
f0 {\b \f10 \fs29 7}{\b \f10 \fs29 Perils }
f0 \fi192 {\fs21 As}{\fs21 we}{\fs21 have}{\fs21 seen,}{\fs21 s.}{\fs21 26}
{\fs21 MIA}{\fs21 requires}{\fs21 that}{\fs21 the}{\fs21 policy}{\fs21 spe
cify}{\fs21 the}{\fs21 perils}{\fs21 insured}{\fs21 against.}{\fs21 Further
,}{\fs21 the }
fi192 {\fs21 definition}{\fs21 of}{\fs21 maritime}{\fs21 perils}{\fs21 in}{\
fs21 s.}{\fs21 2}{\fs21 (1)}{\fs21 lists}{\fs21 the}{\fs21 traditional}{\f
s21 perils}{\fs21 covered}{\fs21 by}{\fs21 a}{\fs21 marine}{\fs21 insuranc
e }
fi192 {\fs21 policy.}{\fs21 These}{\fs21 are}{\fs21 the}{\fs21 minimum}{\fs2
1 perils}{\fs21 one}{\fs21 will}{\fs21 usually}{\fs21 find}{\fs21 in}{\fs2
1 a}{\fs21 marine}{\fs21 insurance}{\fs21 policy.}{\fs21 Many }
fi192 {\fs21 policies}{\fs21 extend}{\fs21 coverage}{\fs21 to}{\fs21 include
}{\fs21 additional}{\fs21 perils.}{\fs21 Each}{\fs21 policy}{\fs21 must}{\f
s21 be}{\fs21 carefully}{\fs21 reviewed}{\fs21 to }
fi192 {\fs21 determine}{\fs21 which}{\fs21 perils}{\fs21 are}{\fs21 covered}
{\fs21 and}{\fs21 which}{\fs21 are}{\fs21 excluded. }
f0 \fi192 {\fs21 Section}{\fs21 53(1)}{\fs21 MIA}{\fs21 provides}{\fs21 that
}{\fs21 an}{\fs21 insurer}{\fs21 is}{\fs21 liable}{\fs21 for}{\fs21 a}{\fs
21 loss}{\fs21 proximately}{\fs21 caused}{\fs21 by}{\fs21 an}{\fs21 insure
d}{\fs21 peril }
fi192 {\fs21 even}{\fs21 if}{\fs21 misconduct}{\fs21 or}{\fs21 negligence}{\
fs21 of}{\fs21 the}{\fs21 crew}{\fs21 is}{\fs21 also}{\fs21 an}{\fs21 ope
rative}{\fs21 cause. }
f0 \fi902 {\b 53.} (1) Subject to this Act and unless a marine policy otherwise
provides, an insurer is
fi902 liable only for a loss that is proximately caused by a peril insured again
st, including a
fi902 loss that would not have occurred but for the misconduct or negligence of
the master or
fi902 crew.
f0 \fi274 {\b\i \f10 \fs25 7.1}{\b\i \f10 \fs25 Insured}{\b\i \f10 \fs25 Peril
s }
f0 \fi556 {\b \f10 \fs25 7.1.1}{\b \f10 \fs25 Perils}{\b \f10 \fs25 of}{\b \f1
0 \fs25 the}{\b \f10 \fs25 Sea }
f0 \fi618 {\fs21 Perils}{\fs21 of}{\fs21 the}{\fs21 sea}{\fs21 is}{\fs21 in
cluded}{\fs21 in}{\fs21 the}{\fs21 definition}{\fs21 of}{\fs21 "maritime}{\
fs21 perils"}{\fs21 and}{\fs21 is}{\fs21 further}{\fs21 defined}{\fs21 in}
{\fs21 s.2(d) }
fi618 {\fs21 of}{\fs21 the}{\fs21 Schedule}{\fs21 to}{\fs21 the}{\fs21 MIA}
{\fs21 as}{\fs21 meaning}{\fs21 "fortuitous}{\fs21 accidents}{\fs21 or}{\fs
21 casualties}{\fs21 of}{\fs21 the}{\fs21 seas,}{\fs21 but}{\fs21 does }
fi618 {\fs21 not}{\fs21 include}{\fs21 ordinary}{\fs21 action}{\fs21 of}{\fs
21 the}{\fs21 wind}{\fs21 and}{\fs21 waves". }
f0 \fi618 {\fs21 It}{\fs21 is}{\fs21 not}{\fs21 necessary}{\fs21 that}{\fs21
the}{\fs21 loss}{\fs21 be}{\fs21 caused}{\fs21 by}{\fs21 extraordinary}{\
fs21 violence}{\fs21 of}{\fs21 the}{\fs21 winds}{\fs21 or}{\fs21 waves}{\f
s21 in }
fi618 {\fs21 order}{\fs21 for}{\fs21 it}{\fs21 to}{\fs21 be}{\fs21 a}{\fs21
peril}{\fs21 of}{\fs21 the}{\fs21 sea.}{\fs21 It}{\fs21 is,}{\fs21 howe
ver,}{\fs21 necessary}{\fs21 that}{\fs21 there}{\fs21 be}{\fs21 an}{\fs21
accident}{\fs21 or}{\fs21 casualty }
fi618 {\fs21 that}{\fs21 could}{\fs21 not}{\fs21 have}{\fs21 been}{\fs21 fo
reseen}{\fs21 as}{\fs21 one}{\fs21 of}{\fs21 the}{\fs21 necessary}{\fs21 i
ncidents}{\fs21 of}{\fs21 the}{\fs21 adventure.}{\fs21 (Wilson }
fi618 {\fs21 Sons}{\fs21 &}{\fs21 Co.}{\fs21 v}{\fs21 Xanthos,}{\fs21 (1887
)}{\fs21 12}{\fs21 App.}{\fs21 Cas.}{\fs21 503) }
f0 \fi618 {\fs21 Although}{\fs21 foreseeability}{\fs21 is}{\fs21 a}{\fs21 ke
y}{\fs21 element}{\fs21 of}{\fs21 a}{\fs21 peril}{\fs21 of}{\fs21 the}{\fs
21 sea,}{\fs21 foreseeable}{\fs21 heavy}{\fs21 weather}{\fs21 will}{\fs21
not }
fi618 {\fs21 always}{\fs21 operate}{\fs21 to}{\fs21 exclude}{\fs21 a}{\fs21
peril}{\fs21 of}{\fs21 the}{\fs21 sea}{\fs21 (as}{\fs21 it}{\fs21 does}{\
fs21 with}{\fs21 peril}{\fs21 of}{\fs21 the}{\fs21 sea}{\fs21 defence}{\fs
21 in}{\fs21 a}{\fs21 carriage }
fi618 {\fs21 of}{\fs21 goods}{\fs21 case).}{\fs21 A}{\fs21 loss}{\fs21 cau
sed}{\fs21 by}{\fs21 the}{\fs21 accidental}{\fs21 incursion}{\fs21 of}{\fs2
1 sea}{\fs21 water}{\fs21 into}{\fs21 a}{\fs21 vessel}{\fs21 in }

fi618 {\fs21 foreseeable}{\fs21 heavy}{\fs21 weather}{\fs21 will}{\i \fs21 p
rima}{\i \fs21 facie}{\fs21 be}{\fs21 a}{\fs21 peril}{\fs21 of}{\fs21 the}
{\fs21 sea.}{\fs21 It}{\fs21 is}{\fs21 the}{\fs21 fortuitous}{\fs21 entry}
{\fs21 of}{\fs21 sea }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 14 \par
}
}
1 \cf0 water that is the peril of the sea. (Canada Rice Mills v Union Marine, [1
941] A.C. 55)
0 \fi62 The leading Canadian cases on what constitutes a peril of the sea are Ce
ntury Insurance
i62 Company of Canada v Case Existological Laboratories Ltd. (The "BAMCELL II"),
[1983] 2
i62 S.C.R. 47, and C.C.R. Fishing v British Reserve Insurance Co., [1990] 1 S.C.
R. 814. In both
i62 cases the insured vessels sinking due to the entry of sea water. In the firs
t case the vessel sank
i62 because an employee had negligently left a valve opened. In the second case
the vessel sank
i62 because a valve was left open and water entered through two corroded screws.
In both cases the
i62 Supreme Court held that the unintentional entry of sea water into a ship was
a peril of the sea. It

i62 did not matter that the unintentional entry of sea water was due to negligen
ce or some other
i62 cause.
0 \fi62 In order for a peril to be "of the sea" it must be something unique to t
he sea. If it is a peril that
i62 could operate on land it is not a peril of the sea. ( Century Insurance Comp
any of Canada v Case
i62 Existological Laboratories Ltd. (The "BAMCELL II"), [1983] 2 S.C.R. 47)
0 {\b \f10 \fs25 7.1.2}{\b \f10 \fs25 Fire }
0 \fi204 Losses caused by fire are generally covered by marine policies. This in
cludes fire losses caused
i204 by negligence of the crew (Bush v Royal Exchange (1818) 2 B & Ald. 73) and
fire losses
i204 caused by arson provided the assured was not privy to the arson (Slattery v
Mance, (1962) 1
i204 Q.B. 676).
0 \fi204 Damage caused by measures taken to suppress a fire will also be covered
, however, if there is
i204 damage caused to avoid a fire there will not be coverage. (Watson & Sons v
Firemen's Fund,
i204 [1922] K.B. 355)
0 {\b \f10 \fs25 7.1.3}{\b \f10 \fs25 Pirates}{\b \f10 \fs25 and}{\b \f10 \fs2
5 Thieves }
0 \fi204 The coverage afforded to losses caused by pirates and thieves must be c
onsidered with
i204 reference to the definitions set out in the Schedule to the MIA. The term p
irates is defined as
i204 including "passengers on the insured ship who mutiny and persons who attack
the ship from
i204 land". The term thieves is defined as not including "persons who commit a c
landestine theft or
i204 passengers, officers or members of the crew of the insured ship who commit
a theft".
0 {\b \f10 \fs25 7.1.4}{\b \f10 \fs25 Captures,}{\b \f10 \fs25 Seizures}{\b \f
10 \fs25 and}{\b \f10 \fs25 Restraints }
0 \fi204 The coverage afforded to losses caused by captures, seizures, restraint
s of Princes etc. must
i204 also be considered with reference to the definitions set out in the Schedul
e to the MIA. Arrests

i204 etc. of kings, princes, and people is defined as including "political or ex
ecutive acts, but does
i204 not include riot or ordinary judicial process".
0 {\b \f10 \fs25 7.1.5}{\b \f10 \fs25 Jettisons }
0 \fi204 Jettison is the act of throwing goods or equipment overboard to save li
fe or the maritime
i204 adventure. It is a general average act and is expressly dealt with in secti
on 65 of the MIA. \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi646 {\i0 \f10 \fs25 7.1.6}{\i0 \f10 \fs25 Barratry }\par
}
cf0 15 \par
}
}
s21 \cf0 Barratry is defined in the Schedule to the MIA as including "every wron
gful act wilfully
fi485 committed by the master or crew of the insured ship to the prejudice of th
e owner or charterer
fi485 of the ship".
f0 {\b\i \f10 \fs25 7.2}{\b\i \f10 \fs25 Excluded}{\b\i \f10 \fs25 Perils }
f0 \fi201 Section 53(2) enumerates the perils that are expressly excluded by the
MIA.
f0 \fi911 {\fs19 (2)}{\fs19 Without}{\fs19 limiting}{\fs19 the}{\fs19 genera

lity}{\fs19 of}{\fs19 subsection}{\fs19 (1),}{\fs19 an}{\fs19 insurer}{\fs1
9 is}{\fs19 not}{\fs19 liable}{\fs19 for}{\fs19 any }
fi911 {\fs19 loss}{\fs19 attributable}{\fs19 to}{\fs19 the}{\fs19 wilful}{\f
s19 misconduct}{\fs19 of}{\fs19 the}{\fs19 insured}{\fs19 nor,}{\fs19 unle
ss}{\fs19 the}{\fs19 marine}{\fs19 policy }
fi911 {\fs19 otherwise}{\fs19 provides,}{\fs19 for }
fi911 {\fs19 (}{\i \fs19 a}{\fs19 )}{\fs19 in}{\fs19 the}{\fs19 case}{\fs19
of}{\fs19 insurance}{\fs19 on}{\fs19 a}{\fs19 ship}{\fs19 or}{\fs19 goods,
}{\fs19 any}{\fs19 loss}{\fs19 proximately}{\fs19 caused}{\fs19 by}{\fs19
delay, }
fi911 {\fs19 including}{\fs19 a}{\fs19 delay}{\fs19 caused}{\fs19 by}{\fs19
a}{\fs19 peril}{\fs19 insured}{\fs19 against; }
fi911 {\fs19 (}{\i \fs19 b}{\fs19 )}{\fs19 ordinary}{\fs19 wear}{\fs19 and}{\
fs19 tear,}{\fs19 ordinary}{\fs19 leakage}{\fs19 or}{\fs19 breakage}{\fs19
or}{\fs19 inherent}{\fs19 vice}{\fs19 or}{\fs19 nature}{\fs19 of }
fi911 {\fs19 the}{\fs19 subject-matter}{\fs19 insured; }
fi911 {\fs19 (}{\i \fs19 c}{\fs19 )}{\fs19 any}{\fs19 loss}{\fs19 proximately
}{\fs19 caused}{\fs19 by}{\fs19 vermin;}{\fs19 or }
fi911 {\fs19 (}{\i \fs19 d}{\fs19 )}{\fs19 any}{\fs19 loss}{\fs19 or}{\fs19
damage}{\fs19 to}{\fs19 machinery}{\fs19 not}{\fs19 proximately}{\fs19 caus
ed}{\fs19 by}{\fs19 maritime}{\fs19 perils. }
f0 \fi201 It should be noted and remembered that these exclusions only apply "un
less the marine policy
fi201 otherwise provides". Many policies do provide coverage for some or all of
these exceptions.
f0 \fi281 {\b \f10 \fs25 7.2.1}{\b \f10 \fs25 Wilful}{\b \f10 \fs25 Misconduct
}
f0 \fi344 The wilful misconduct exception must be read together with s. 53(1) of
the MIA. Pursuant to s.
fi344 53(1), if a loss is caused by a covered peril it does not matter if there
was also misconduct or
fi344 negligence. In order for the loss to be excluded the misconduct must be "w
ilful". Such conduct
fi344 goes far beyond negligence or even gross negligence. It requires an elemen
t of intention.
fi344 (McCulloch v Murray, [1942] S.C.R. 141)
f0 \fi281 {\b \f10 \fs25 7.2.2}{\b \f10 \fs25 Delay }
f0 \fi344 Losses caused by delay are excluded from coverage even if the delay i
s caused by a peril that is
fi344 insured against.

f0 \fi281 {\b \f10 \fs25 7.2.3}{\b \f10 \fs25 Wear}{\b \f10 \fs25 and}{\b \f10
\fs25 Tear}{\b \f10 \fs25 etc. }
f0 \fi344 Losses caused by ordinary wear and tear, ordinary leakage or breakage
or inherent vice are not
fi344 covered. Such losses are not fortuities. They are to be expected in the o
rdinary course of things
fi344 and for this reason are not properly the subject of insurance, the purpose
of which is to provide
fi344 protection in the case of fortuities. (Patterson v Harris, (1868) 18 UCCP
305) \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi646 {\i0 \f10 \fs25 7.2.4}{\i0 \f10 \fs25 Vermin }\par
}
cf0 16 \par
}
}
{\phpg\posx1500\pvpg\posy2362\absw10270\absh9999 \f20 \fs21 \cf0 \fi344 \f20 \fs
21 \cf0 The exclusion of vermin from coverage is primarily only of historical in
terest. At one time
i344 vermin were a major cause of loss and damage. Today, losses caused by vermi
n are rare.
0 \fi281 {\b \f10 \fs25 7.2.5}{\b \f10 \fs25 Loss}{\b \f10 \fs25 or}{\b \f10 \
fs25 Damage}{\b \f10 \fs25 to}{\b \f10 \fs25 Machinery }
0 \fi344 The exclusion for loss or damage to machinery not otherwise covered by
a specified peril should
i344 be considered in light of the modern "inchmaree" clauses found in most poli
cies. The
i344 "inchmaree" clauses are not standardised but they generally extend coverage
to loss or damage
i344 caused by "bursting of boilers, breakage of shafts or any latent defect in
the machinery or hull"
i344 provided "such loss or damage has not resulted from want of due diligence b
y the Assured,
i344 Owners or Managers". The inchmaree clause also extends coverage to loss of
or damage caused
i344 by negligence of the Masters, Officers, Crew or Pilots but subject to the s
ame proviso that there
i344 must not have been a want of due diligence by the Assured etc.
0 {\b\i \f10 \fs25 7.3}{\b\i \f10 \fs25 All}{\b\i \f10 \fs25 Risks}{\b\i \f10
\fs25 Policies }
0 \fi344 Policies that provide "all risks" coverage must be distinguished from t
hose that provide named
i344 perils coverage. "All Risks" policies of insurance provide coverage agains
t all risk of damage
i344 or loss but also provide exclusions. The exclusions must be carefully revie
wed. To the extent
i344 that any loss comes within the exclusions it will not be covered.
0 \fi344 Moreover, even if a loss does not come within an exclusion it may still
not be covered under an
i344 "All Risks" policy. The leading case on the meaning of "all risks" is Brit
ish and Foreign
i344 Marine Insurance Company Limited v Gaunt, [1921] A.C. 41. In this case the
House of Lords
i344 held that the words "all risks" do not cover all damage however caused and
specifically held
i344 that the words would not cover damage caused by wear and tear, inevitable d
eterioration or
i344 inherent vice. The court further held that "All Risks" policies cover only
damage caused by an
i344 accident or due to some fortuitous circumstance or casualty. The various ju
dgements of the law
i344 lords are captured by the following quotation from Lord Sumner at p.57:
0 \fi1054 {\fs19 "There}{\fs19 are,}{\fs19 of}{\fs19 course,}{\fs19 limits}{
\fs19 to}{\fs19 "all}{\fs19 risks".}{\fs19 They}{\fs19 are}{\fs19 risks}{\
fs19 and}{\fs19 risks}{\fs19 insured}{\fs19 against. }

i1054 {\fs19 Accordingly}{\fs19 the}{\fs19 expression}{\fs19 does}{\fs19 not
}{\fs19 cover}{\fs19 inherent}{\fs19 vice}{\fs19 or}{\fs19 mere}{\fs19 wea
r}{\fs19 and}{\fs19 tear}{\fs19 or }
i1054 {\fs19 British}{\fs19 capture.}{\fs19 It}{\fs19 covers}{\fs19 a}{\fs19
risk,}{\fs19 not}{\fs19 a}{\fs19 certainty;}{\fs19 it}{\fs19 is}{\fs19 s
omething,}{\fs19 which}{\fs19 happens}{\fs19 to }
i1054 {\fs19 the}{\fs19 subject-matter}{\fs19 from}{\fs19 without,}{\fs19 no
t}{\fs19 the}{\fs19 natural}{\fs19 behaviour}{\fs19 of}{\fs19 that}{\fs19
subject-matter, }
i1054 {\fs19 being}{\fs19 what}{\fs19 it}{\fs19 is,}{\fs19 in}{\fs19 the}{\
fs19 circumstances}{\fs19 under}{\fs19 which}{\fs19 it}{\fs19 is}{\fs19 ca
rried.}{\fs19 Nor}{\fs19 is}{\fs19 it}{\fs19 a}{\fs19 loss }
i1054 {\fs19 which}{\fs19 the}{\fs19 assured}{\fs19 brings}{\fs19 about}{\fs
19 by}{\fs19 his}{\fs19 own}{\fs19 act,}{\fs19 for}{\fs19 then}{\fs19 he}
{\fs19 has}{\fs19 not}{\fs19 merely}{\fs19 exposed }
i1054 {\fs19 the}{\fs19 goods}{\fs19 to}{\fs19 the}{\fs19 chance}{\fs19 of}
{\fs19 injury,}{\fs19 he}{\fs19 has}{\fs19 injured}{\fs19 them}{\fs19 hims
elf." }
0 \fi344 Therefore, in order for there to be coverage under an "All Risks" polic
y the loss must have been
i344 caused by a fortuity i.e. an accident or casualty. A loss caused by wear an
d tear, deterioration or
i344 inherent vice of the subject matter insured is not covered. \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 17 \par
}

}
{\phpg\posx1225\pvpg\posy1758\absw10361\absh10841 \b\i \f10 \fs25 \cf0 \fi274 \b
\i \f10 \fs25 \cf0 7.4 Two or More Concurrent Causes
\par}{\phpg\posx1225\pvpg\posy1758\absw10361\absh10841 \sl-280 \par\b\i \f10 \fs
25 \cf0 \fi536 {\b0\i0 \f20 \fs21 In}{\b0\i0 \f20 \fs21 Charterhouse}{\b0\i0 \
f20 \fs21 Properties}{\b0\i0 \f20 \fs21 Ltd.}{\b0\i0 \f20 \fs21 v}{\b0\i0 \f
20 \fs21 Laurentian}{\b0\i0 \f20 \fs21 Pacific}{\b0\i0 \f20 \fs21 Insurance,}
{\b0\i0 \f20 \fs21 (1993)}{\b0\i0 \f20 \fs21 75}{\b0\i0 \f20 \fs21 B.C.L.R.}{
\b0\i0 \f20 \fs21 (2d)}{\b0\i0 \f20 \fs21 299,}{\b0\i0 \f20 \fs21 it }
\par}{\phpg\posx1225\pvpg\posy1758\absw10361\absh10841 \sl-273 \b\i \f10 \fs25 \
cf0 \fi476 {\b0\i0 \f20 \fs21 was}{\b0\i0 \f20 \fs21 held}{\b0\i0 \f20 \fs21 t
hat}{\b0\i0 \f20 \fs21 where}{\b0\i0 \f20 \fs21 damage}{\b0\i0 \f20 \fs21 is}
{\b0\i0 \f20 \fs21 caused}{\b0\i0 \f20 \fs21 by}{\b0\i0 \f20 \fs21 two}{\b0\i
0 \f20 \fs21 independent}{\b0\i0 \f20 \fs21 concurring}{\b0\i0 \f20 \fs21 cau
ses,}{\b0\i0 \f20 \fs21 one}{\b0\i0 \f20 \fs21 of}{\b0\i0 \f20 \fs21 which}{\
b0\i0 \f20 \fs21 is }
cf0 \fi476 {\b0\i0 \f20 \fs21 covered}{\b0\i0 \f20 \fs21 by}{\b0\i0 \f20 \fs21
the}{\b0\i0 \f20 \fs21 policy}{\b0\i0 \f20 \fs21 and}{\b0\i0 \f20 \fs21 the}
{\b0\i0 \f20 \fs21 other}{\b0\i0 \f20 \fs21 is}{\b0\i0 \f20 \fs21 not}{\b0\i0
\f20 \fs21 expressly}{\b0\i0 \f20 \fs21 excluded,}{\b0\i0 \f20 \fs21 the}{\b
0\i0 \f20 \fs21 damage}{\b0\i0 \f20 \fs21 is}{\b0\i0 \f20 \fs21 recoverable.
}
cf0 \fi476 {\b0\i0 \f20 \fs21 Conversely,}{\b0\i0 \f20 \fs21 if}{\b0\i0 \f20 \f
s21 one}{\b0\i0 \f20 \fs21 of}{\b0\i0 \f20 \fs21 the}{\b0\i0 \f20 \fs21 conc
urring}{\b0\i0 \f20 \fs21 causes}{\b0\i0 \f20 \fs21 is}{\b0\i0 \f20 \fs21 exc
luded}{\b0\i0 \f20 \fs21 by}{\b0\i0 \f20 \fs21 the}{\b0\i0 \f20 \fs21 terms}{
\b0\i0 \f20 \fs21 of}{\b0\i0 \f20 \fs21 the}{\b0\i0 \f20 \fs21 policy}{\b0\i0
\f20 \fs21 the}{\b0\i0 \f20 \fs21 damage}{\b0\i0 \f20 \fs21 is }
cf0 \fi476 {\b0\i0 \f20 \fs21 not}{\b0\i0 \f20 \fs21 recoverable. }
25 \cf0 \fi476 {\b0\i0 \f20 \fs21 However,}{\b0\i0 \f20 \fs21 in}{\b0\i0 \f20
\fs21 C.C.R.}{\b0\i0 \f20 \fs21 Fishing}{\b0\i0 \f20 \fs21 Ltd.}{\b0\i0 \f20
\fs21 v}{\b0\i0 \f20 \fs21 Tomenson}{\b0\i0 \f20 \fs21 Inc.,}{\b0\i0 \f20 \f
s21 (1990)}{\b0\i0 \f20 \fs21 43}{\b0\i0 \f20 \fs21 C.C.L.I.}{\b0\i0 \f20 \fs
21 1,}{\b0\i0 \f20 \fs21 the}{\b0\i0 \f20 \fs21 Supreme}{\b0\i0 \f20 \fs21 C
ourt}{\b0\i0 \f20 \fs21 of }
cf0 \fi476 {\b0\i0 \f20 \fs21 Canada}{\b0\i0 \f20 \fs21 was}{\b0\i0 \f20 \fs21
called}{\b0\i0 \f20 \fs21 upon}{\b0\i0 \f20 \fs21 to}{\b0\i0 \f20 \fs21 dete
rmine}{\b0\i0 \f20 \fs21 whether}{\b0\i0 \f20 \fs21 there}{\b0\i0 \f20 \fs21
was}{\b0\i0 \f20 \fs21 coverage}{\b0\i0 \f20 \fs21 for}{\b0\i0 \f20 \fs21 a}{
\b0\i0 \f20 \fs21 sinking}{\b0\i0 \f20 \fs21 which}{\b0\i0 \f20 \fs21 was}{\b
0\i0 \f20 \fs21 caused }
cf0 \fi476 {\b0\i0 \f20 \fs21 by}{\b0\i0 \f20 \fs21 a}{\b0\i0 \f20 \fs21 combi
nation}{\b0\i0 \f20 \fs21 of}{\b0\i0 \f20 \fs21 factors}{\b0\i0 \f20 \fs21 na
mely,}{\b0\i0 \f20 \fs21 failure}{\b0\i0 \f20 \fs21 to}{\b0\i0 \f20 \fs21 clo
se}{\b0\i0 \f20 \fs21 a}{\b0\i0 \f20 \fs21 valve}{\b0\i0 \f20 \fs21 and}{\b0\
i0 \f20 \fs21 corrosion}{\b0\i0 \f20 \fs21 of}{\b0\i0 \f20 \fs21 cap}{\b0\i0
\f20 \fs21 screws.}{\b0\i0 \f20 \fs21 The }
cf0 \fi476 {\b0\i0 \f20 \fs21 Supreme}{\b0\i0 \f20 \fs21 Court}{\b0\i0 \f20 \fs
21 ultimately}{\b0\i0 \f20 \fs21 found}{\b0\i0 \f20 \fs21 that}{\b0\i0 \f20 \
fs21 both}{\b0\i0 \f20 \fs21 of}{\b0\i0 \f20 \fs21 these}{\b0\i0 \f20 \fs21
causes}{\b0\i0 \f20 \fs21 were}{\b0\i0 \f20 \fs21 insured}{\b0\i0 \f20 \fs21
perils}{\b0\i0 \f20 \fs21 but}{\b0\i0 \f20 \fs21 nevertheless }

cf0 \fi476 {\b0\i0 \f20 \fs21 considered}{\b0\i0 \f20 \fs21 whether}{\b0\i0 \f2
0 \fs21 there}{\b0\i0 \f20 \fs21 would}{\b0\i0 \f20 \fs21 have}{\b0\i0 \f20 \
fs21 been}{\b0\i0 \f20 \fs21 coverage}{\b0\i0 \f20 \fs21 if}{\b0\i0 \f20 \fs2
1 an}{\b0\i0 \f20 \fs21 excluded}{\b0\i0 \f20 \fs21 peril}{\b0\i0 \f20 \fs21
had}{\b0\i0 \f20 \fs21 been}{\b0\i0 \f20 \fs21 a}{\b0\i0 \f20 \fs21 contribu
ting }
cf0 \fi476 {\b0\i0 \f20 \fs21 cause.}{\b0\i0 \f20 \fs21 On}{\b0\i0 \f20 \fs21
this}{\b0\i0 \f20 \fs21 issue}{\b0\i0 \f20 \fs21 the}{\b0\i0 \f20 \fs21 Cour
t}{\b0\i0 \f20 \fs21 said: }
25 \cf0 \fi1186 {\b0\i0 \f20 \fs19 "I}{\b0\i0 \f20 \fs19 am}{\b0\i0 \f20 \fs19
of}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 view}{\b0\i0 \f20 \fs19 that}{\
b0\i0 \f20 \fs19 it}{\b0\i0 \f20 \fs19 is}{\b0\i0 \f20 \fs19 wrong}{\b0\i0 \f
20 \fs19 to}{\b0\i0 \f20 \fs19 place}{\b0\i0 \f20 \fs19 too}{\b0\i0 \f20 \fs1
9 much}{\b0\i0 \f20 \fs19 emphasis}{\b0\i0 \f20 \fs19 on}{\b0\i0 \f20 \fs19
the}{\b0\i0 \f20 \fs19 distinction }
cf0 \fi1186 {\b0\i0 \f20 \fs19 between}{\b0\i0 \f20 \fs19 proximate}{\b0\i0 \f2
0 \fs19 and}{\b0\i0 \f20 \fs19 remote}{\b0\i0 \f20 \fs19 cause}{\b0\i0 \f20 \
fs19 in}{\b0\i0 \f20 \fs19 construing}{\b0\i0 \f20 \fs19 policies}{\b0\i0 \f2
0 \fs19 such}{\b0\i0 \f20 \fs19 as }
cf0 \fi1186 {\b0\i0 \f20 \fs19 this...Realistically}{\b0\i0 \f20 \fs19 speaking
,}{\b0\i0 \f20 \fs19 it}{\b0\i0 \f20 \fs19 must}{\b0\i0 \f20 \fs19 be}{\b0\i0
\f20 \fs19 recognised}{\b0\i0 \f20 \fs19 that}{\b0\i0 \f20 \fs19 several}{\b
0\i0 \f20 \fs19 factors}{\b0\i0 \f20 \fs19 may}{\b0\i0 \f20 \fs19 combine }
cf0 \fi1186 {\b0\i0 \f20 \fs19 to}{\b0\i0 \f20 \fs19 result}{\b0\i0 \f20 \fs19
in}{\b0\i0 \f20 \fs19 a}{\b0\i0 \f20 \fs19 loss}{\b0\i0 \f20 \fs19 at}{\b0\i
0 \f20 \fs19 sea.}{\b0\i0 \f20 \fs19 It}{\b0\i0 \f20 \fs19 is}{\b0\i0 \f20 \
fs19 unrealistic}{\b0\i0 \f20 \fs19 to}{\b0\i0 \f20 \fs19 exclude}{\b0\i0 \f2
0 \fs19 from}{\b0\i0 \f20 \fs19 consideration}{\b0\i0 \f20 \fs19 any}{\b0\i0
\f20 \fs19 one}{\b0\i0 \f20 \fs19 of }
cf0 \fi1186 {\b0\i0 \f20 \fs19 them,}{\b0\i0 \f20 \fs19 provided}{\b0\i0 \f20 \
fs19 it}{\b0\i0 \f20 \fs19 has}{\b0\i0 \f20 \fs19 contributed}{\b0\i0 \f20 \f
s19 to}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 loss.}{\b0\i0 \f20 \fs19 W
hat}{\b0\i0 \f20 \fs19 is}{\b0\i0 \f20 \fs19 essential}{\b0\i0 \f20 \fs19 in}
{\b0\i0 \f20 \fs19 order}{\b0\i0 \f20 \fs19 to}{\b0\i0 \f20 \fs19 establish }
cf0 \fi1186 {\b0\i0 \f20 \fs19 that}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19
loss}{\b0\i0 \f20 \fs19 is}{\b0\i0 \f20 \fs19 "fortuitous"}{\b0\i0 \f20 \fs19
is}{\b0\i0 \f20 \fs19 an}{\b0\i0 \f20 \fs19 accident}{\b0\i0 \f20 \fs19 caus
ed}{\b0\i0 \f20 \fs19 by}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 interventi
on}{\b0\i0 \f20 \fs19 of}{\b0\i0 \f20 \fs19 negligence, }
cf0 \fi1186 {\b0\i0 \f20 \fs19 or}{\b0\i0 \f20 \fs19 adverse}{\b0\i0 \f20 \fs19
or}{\b0\i0 \f20 \fs19 unusual}{\b0\i0 \f20 \fs19 conditions}{\b0\i0 \f20 \fs
19 without}{\b0\i0 \f20 \fs19 which}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19
loss}{\b0\i0 \f20 \fs19 would}{\b0\i0 \f20 \fs19 not}{\b0\i0 \f20 \fs19 hav
e}{\b0\i0 \f20 \fs19 occurred. }
cf0 \fi1186 {\b0\i0 \f20 \fs19 This}{\b0\i0 \f20 \fs19 is}{\b0\i0 \f20 \fs19 t
he}{\b0\i0 \f20 \fs19 shared}{\b0\i0 \f20 \fs19 idea}{\b0\i0 \f20 \fs19 which
}{\b0\i0 \f20 \fs19 underlies}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 exclu
sion}{\b0\i0 \f20 \fs19 from}{\b0\i0 \f20 \fs19 coverage}{\b0\i0 \f20 \fs19 o
f}{\b0\i0 \f20 \fs19 damage}{\b0\i0 \f20 \fs19 due }
cf0 \fi1186 {\b0\i0 \f20 \fs19 to}{\b0\i0 \f20 \fs19 ordinary}{\b0\i0 \f20 \fs1
9 wear}{\b0\i0 \f20 \fs19 and}{\b0\i0 \f20 \fs19 tear}{\b0\i0 \f20 \fs19 or}
{\b0\i0 \f20 \fs19 inherent}{\b0\i0 \f20 \fs19 vice....}{\b0\i0 \f20 \fs19 On
}{\b0\i0 \f20 \fs19 this}{\b0\i0 \f20 \fs19 reasoning,}{\b0\i0 \f20 \fs19 it}
{\b0\i0 \f20 \fs19 does}{\b0\i0 \f20 \fs19 not}{\b0\i0 \f20 \fs19 matter}{\b0
\i0 \f20 \fs19 if }
cf0 \fi1186 {\b0\i0 \f20 \fs19 one}{\b0\i0 \f20 \fs19 of}{\b0\i0 \f20 \fs19 th
e}{\b0\i0 \f20 \fs19 causes}{\b0\i0 \f20 \fs19 of}{\b0\i0 \f20 \fs19 the}{\b0
\i0 \f20 \fs19 loss}{\b0\i0 \f20 \fs19 is}{\b0\i0 \f20 \fs19 ordinary}{\b0\i0
\f20 \fs19 wear}{\b0\i0 \f20 \fs19 and}{\b0\i0 \f20 \fs19 tear}{\b0\i0 \f20
\fs19 or}{\b0\i0 \f20 \fs19 inherent}{\b0\i0 \f20 \fs19 vice,}{\b0\i0 \f20 \f
s19 provided}{\b0\i0 \f20 \fs19 that }
cf0 \fi1186 {\b0\i0 \f20 \fs19 an}{\b0\i0 \f20 \fs19 efficient}{\b0\i0 \f20 \fs
19 or}{\b0\i0 \f20 \fs19 effective}{\b0\i0 \f20 \fs19 cause}{\b0\i0 \f20 \fs1
9 of}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 loss}{\b0\i0 \f20 \fs19 -}{\b
0\i0 \f20 \fs19 one}{\b0\i0 \f20 \fs19 without}{\b0\i0 \f20 \fs19 which}{\b0\
i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 loss}{\b0\i0 \f20 \fs19 would}{\b0\i0 \f
20 \fs19 not}{\b0\i0 \f20 \fs19 have }
cf0 \fi1186 {\b0\i0 \f20 \fs19 occurred}{\b0\i0 \f20 \fs19 -}{\b0\i0 \f20 \fs19
was}{\b0\i0 \f20 \fs19 fortuitous... }
cf0 \fi1186 {\b0\i0 \f20 \fs19 It}{\b0\i0 \f20 \fs19 should}{\b0\i0 \f20 \fs19
be}{\b0\i0 \f20 \fs19 sufficient}{\b0\i0 \f20 \fs19 to}{\b0\i0 \f20 \fs19 br
ing}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 loss}{\b0\i0 \f20 \fs19 within}
{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 risk}{\b0\i0 \f20 \fs19 if}{\b0\i0
\f20 \fs19 it}{\b0\i0 \f20 \fs19 is}{\b0\i0 \f20 \fs19 established}{\b0\i0 \f
20 \fs19 that,}{\b0\i0 \f20 \fs19 viewed }
cf0 \fi1186 {\b0\i0 \f20 \fs19 in}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 en
tire}{\b0\i0 \f20 \fs19 context}{\b0\i0 \f20 \fs19 of}{\b0\i0 \f20 \fs19 the}
{\b0\i0 \f20 \fs19 case,}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 loss}{\b0\
i0 \f20 \fs19 is}{\b0\i0 \f20 \fs19 shown}{\b0\i0 \f20 \fs19 to}{\b0\i0 \f20
\fs19 be}{\b0\i0 \f20 \fs19 fortuitous}{\b0\i0 \f20 \fs19 in}{\b0\i0 \f20 \fs
19 the}{\b0\i0 \f20 \fs19 sense}{\b0\i0 \f20 \fs19 that}{\b0\i0 \f20 \fs19 i
t }
cf0 \fi1186 {\b0\i0 \f20 \fs19 would}{\b0\i0 \f20 \fs19 not}{\b0\i0 \f20 \fs19
have}{\b0\i0 \f20 \fs19 occurred}{\b0\i0 \f20 \fs19 save}{\b0\i0 \f20 \fs19
for}{\b0\i0 \f20 \fs19 an}{\b0\i0 \f20 \fs19 unusual}{\b0\i0 \f20 \fs19 event
}{\b0\i0 \f20 \fs19 not}{\b0\i0 \f20 \fs19 ordinarily}{\b0\i0 \f20 \fs19 to}{
\b0\i0 \f20 \fs19 be}{\b0\i0 \f20 \fs19 expected}{\b0\i0 \f20 \fs19 in }
cf0 \fi1186 {\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 normal}{\b0\i0 \f20 \fs19
course}{\b0\i0 \f20 \fs19 of}{\b0\i0 \f20 \fs19 things." }
25 \cf0 {\i0 \fs29 8}{\i0 \fs29 Warranties }
25 \cf0 \fi274 8.1 What is a warranty
25 \cf0 \fi618 {\b0\i0 \f20 \fs21 A}{\b0\i0 \f20 \fs21 warranty}{\b0\i0 \f20 \f
s21 is}{\b0\i0 \f20 \fs21 defined}{\b0\i0 \f20 \fs21 in}{\b0\i0 \f20 \fs21 s
.32}{\b0\i0 \f20 \fs21 MIA}{\b0\i0 \f20 \fs21 as}{\b0\i0 \f20 \fs21 follows:
}
25 \cf0 \fi1468 {\i0 \f20 \fs19 32.}{\b0\i0 \f20 \fs19 (1)}{\b0\i0 \f20 \fs19
In}{\b0\i0 \f20 \fs19 this}{\b0\i0 \f20 \fs19 section}{\b0\i0 \f20 \fs19 and}
{\b0\i0 \f20 \fs19 sections}{\b0\i0 \f20 \fs19 33}{\b0\i0 \f20 \fs19 to}{\b0\
i0 \f20 \fs19 39,}{\b0\i0 \f20 \fs19 "warranty"}{\b0\i0 \f20 \fs19 means}{\b0

\i0 \f20 \fs19 a}{\b0\i0 \f20 \fs19 promissory }
cf0 \fi1468 {\b0\i0 \f20 \fs19 warranty}{\b0\i0 \f20 \fs19 by}{\b0\i0 \f20 \fs1
9 which}{\b0\i0 \f20 \fs19 the}{\b0\i0 \f20 \fs19 insured }
cf0 \fi1468 {\b0\i0 \f20 \fs19 (}{\b0 \f20 \fs19 a}{\b0\i0 \f20 \fs19 )}{\b0\i0
\f20 \fs19 undertakes}{\b0\i0 \f20 \fs19 that}{\b0\i0 \f20 \fs19 some}{\b0\i0
\f20 \fs19 particular}{\b0\i0 \f20 \fs19 thing}{\b0\i0 \f20 \fs19 will}{\b0\
i0 \f20 \fs19 or}{\b0\i0 \f20 \fs19 will}{\b0\i0 \f20 \fs19 not}{\b0\i0 \f20
\fs19 be}{\b0\i0 \f20 \fs19 done}{\b0\i0 \f20 \fs19 or}{\b0\i0 \f20 \fs19 th
at}{\b0\i0 \f20 \fs19 some }
cf0 \fi1468 {\b0\i0 \f20 \fs19 condition}{\b0\i0 \f20 \fs19 will}{\b0\i0 \f20 \
fs19 be}{\b0\i0 \f20 \fs19 fulfilled;}{\b0\i0 \f20 \fs19 or }
cf0 \fi1468 {\b0\i0 \f20 \fs19 (}{\b0 \f20 \fs19 b}{\b0\i0 \f20 \fs19 )}{\b0\i0
\f20 \fs19 affirms}{\b0\i0 \f20 \fs19 or}{\b0\i0 \f20 \fs19 negates}{\b0\i0 \
f20 \fs19 the}{\b0\i0 \f20 \fs19 existence}{\b0\i0 \f20 \fs19 of}{\b0\i0 \f20
\fs19 particular}{\b0\i0 \f20 \fs19 facts. }
cf0 \fi1468 {\b0\i0 \f20 \fs19 (2)}{\b0\i0 \f20 \fs19 A}{\b0\i0 \f20 \fs19 war
ranty}{\b0\i0 \f20 \fs19 may}{\b0\i0 \f20 \fs19 be}{\b0\i0 \f20 \fs19 an}{\b0
\i0 \f20 \fs19 express}{\b0\i0 \f20 \fs19 warranty}{\b0\i0 \f20 \fs19 or}{\b0
\i0 \f20 \fs19 an}{\b0\i0 \f20 \fs19 implied}{\b0\i0 \f20 \fs19 warranty. }\p
ar
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi364 {\f10 \fs25 8.2}{\f10 \fs25 Implied}{\f10 \fs25 Warranties }\par
}
cf0 18 \par
}
}
1 \cf0 There are three warranties implied by the MIA. They are the warranty of l
egality, neutrality and

i62 seaworthiness.
0 {\b \f10 \fs25 8.2.1}{\b \f10 \fs25 Legality}{\b \f10 \fs25 s.34}{\b \f10 \f
s25 MIA }
i772 {\b \fs19 34.}{\fs19 There}{\fs19 is}{\fs19 an}{\fs19 implied}{\fs19 w
arranty}{\fs19 in}{\fs19 every}{\fs19 marine}{\fs19 policy}{\fs19 that}{\fs
19 the}{\fs19 marine}{\fs19 adventure }
i772 {\fs19 insured}{\fs19 is}{\fs19 lawful}{\fs19 and,}{\fs19 in}{\fs19 so
}{\fs19 far}{\fs19 as}{\fs19 the}{\fs19 insured}{\fs19 has}{\fs19 control,
}{\fs19 will}{\fs19 be}{\fs19 carried}{\fs19 out}{\fs19 in}{\fs19 a }
i772 {\fs19 lawful}{\fs19 manner. }
0 \fi62 The warranty of legality is one which is often expressly included in pol
icies as well as implied.
i62 Where there is an express warranty of legality it will have precedence over
the implied warranty
i62 to the extent the two are inconsistent.
0 \fi62 In Harbour Inn Seafoods v Switzerland (1991) 6 ANZ Ins. 61-048, it was
held that a breach of
i62 the collision regulations was a breach of the implied warranty of legality.
0 \fi62 In James Yachts Ltd. v Thames and Mersey Marine Insurance Co. [1976] I.L
.R. 1-751, it was
i62 held that a breach of Municipal by-laws was a breach of the implied warranty
of legality that
i62 discharged the insurer from liability.
0 {\b \f10 \fs25 8.2.2}{\b \f10 \fs25 Neutrality}{\b \f10 \fs25 s.36}{\b \f10
\fs25 MIA }
i772 {\b \fs19 36.}{\fs19 (1)}{\fs19 Where}{\fs19 in}{\fs19 any}{\fs19 mari
ne}{\fs19 policy}{\fs19 insurable}{\fs19 property}{\fs19 is}{\fs19 expressl
y}{\fs19 warranted}{\fs19 to}{\fs19 be }
i772 {\fs19 neutral,}{\fs19 there}{\fs19 is}{\fs19 an}{\fs19 implied}{\fs19
condition}{\fs19 in}{\fs19 the}{\fs19 policy }
i772 {\fs19 (}{\i \fs19 a}{\fs19 )}{\fs19 that}{\fs19 the}{\fs19 property}{\f
s19 will}{\fs19 have}{\fs19 a}{\fs19 neutral}{\fs19 character}{\fs19 at}{\
fs19 the}{\fs19 commencement}{\fs19 of}{\fs19 the}{\fs19 risk }
i772 {\fs19 and}{\fs19 that,}{\fs19 in}{\fs19 so}{\fs19 far}{\fs19 as}{\fs1
9 the}{\fs19 insured}{\fs19 has}{\fs19 control,}{\fs19 that}{\fs19 charact
er}{\fs19 will}{\fs19 be}{\fs19 preserved}{\fs19 during }
i772 {\fs19 the}{\fs19 risk;}{\fs19 and }
i772 {\fs19 (}{\i \fs19 b}{\fs19 )}{\fs19 where}{\fs19 the}{\fs19 property}{\
fs19 is}{\fs19 a}{\fs19 ship,}{\fs19 that,}{\fs19 in}{\fs19 so}{\fs19 far
}{\fs19 as}{\fs19 the}{\fs19 insured}{\fs19 has}{\fs19 control,}{\fs19 the

}{\fs19 papers }
i772 {\fs19 necessary}{\fs19 to}{\fs19 establish}{\fs19 the}{\fs19 neutralit
y}{\fs19 of}{\fs19 the}{\fs19 ship}{\fs19 will}{\fs19 be}{\fs19 carried}{\
fs19 on}{\fs19 the}{\fs19 ship}{\fs19 and}{\fs19 will }
i772 {\fs19 not}{\fs19 be}{\fs19 falsified}{\fs19 or}{\fs19 suppressed}{\fs1
9 and}{\fs19 no}{\fs19 simulated}{\fs19 papers}{\fs19 will}{\fs19 be}{\fs1
9 used. }
i772 {\fs19 (2)}{\fs19 If}{\fs19 any}{\fs19 loss}{\fs19 occurs}{\fs19 throu
gh}{\fs19 a}{\fs19 breach}{\fs19 of}{\fs19 the}{\fs19 implied}{\fs19 condi
tion}{\fs19 referred}{\fs19 to}{\fs19 in }
i772 {\fs19 paragraph}{\fs19 (1)(}{\i \fs19 b}{\fs19 ),}{\fs19 the}{\fs19 ins
urer}{\fs19 may}{\fs19 avoid}{\fs19 the}{\fs19 contract. }
0 {\b \f10 \fs25 8.2.3}{\b \f10 \fs25 Seaworthiness}{\b \f10 \fs25 ss.37}{\b \
f10 \fs25 &}{\b \f10 \fs25 38}{\b \f10 \fs25 MIA }
i772 {\b \fs19 37.}{\fs19 (1)}{\fs19 There}{\fs19 is}{\fs19 an}{\fs19 impli
ed}{\fs19 warranty}{\fs19 in}{\fs19 every}{\fs19 voyage}{\fs19 policy}{\fs1
9 that,}{\fs19 at}{\fs19 the }
i772 {\fs19 commencement}{\fs19 of}{\fs19 the}{\fs19 voyage,}{\fs19 the}{\fs
19 ship}{\fs19 will}{\fs19 be}{\fs19 seaworthy}{\fs19 for}{\fs19 the}{\fs1
9 purpose}{\fs19 of}{\fs19 the }
i772 {\fs19 particular}{\fs19 marine}{\fs19 adventure}{\fs19 insured. }
i772 {\fs19 (2)}{\fs19 Where}{\fs19 a}{\fs19 voyage}{\fs19 policy}{\fs19 at
taches}{\fs19 while}{\fs19 the}{\fs19 ship}{\fs19 is}{\fs19 in}{\fs19 port
,}{\fs19 there}{\fs19 is}{\fs19 an}{\fs19 implied }
i772 {\fs19 warranty}{\fs19 in}{\fs19 the}{\fs19 policy}{\fs19 that}{\fs19
the}{\fs19 ship}{\fs19 will,}{\fs19 at}{\fs19 the}{\fs19 commencement}{\fs1
9 of}{\fs19 the}{\fs19 risk,}{\fs19 be }
i772 {\fs19 reasonably}{\fs19 fit}{\fs19 to}{\fs19 encounter}{\fs19 the}{\fs
19 ordinary}{\fs19 perils}{\fs19 of}{\fs19 the}{\fs19 port. }
i772 {\fs19 (3)}{\fs19 Where}{\fs19 a}{\fs19 voyage}{\fs19 policy}{\fs19 re
lates}{\fs19 to}{\fs19 a}{\fs19 voyage}{\fs19 performed}{\fs19 in}{\fs19 d
ifferent}{\fs19 stages}{\fs19 during }
i772 {\fs19 which}{\fs19 the}{\fs19 ship}{\fs19 requires}{\fs19 different}{\
fs19 or}{\fs19 further}{\fs19 preparation}{\fs19 or}{\fs19 equipment,}{\fs1
9 there}{\fs19 is}{\fs19 an }
i772 {\fs19 implied}{\fs19 warranty}{\fs19 in}{\fs19 the}{\fs19 policy}{\fs1
9 that,}{\fs19 at}{\fs19 the}{\fs19 commencement}{\fs19 of}{\fs19 each}{\f
s19 stage,}{\fs19 the}{\fs19 ship}{\fs19 is }
i772 {\fs19 seaworthy}{\fs19 for}{\fs19 the}{\fs19 purposes}{\fs19 of}{\fs19
that}{\fs19 stage. }\par
}

ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 19 \par
}
}
fs19 \cf0 (4)There is no implied warranty in any time policy that the ship will
be seaworthy
fi1054 at any stage of the marine adventure, but where, with the privity of the
insured, the
fi1054 ship is sent to sea in an unseaworthy state, the insurer is not liable fo
r any loss
fi1054 attributable to unseaworthiness.
fi1054 (5)A ship is deemed to be seaworthy if it is reasonably fit in all respec
ts to
fi1054 encounter the ordinary perils of the seas of the marine adventure insured
.
fi1054 {\b 38.} (1) There is no implied warranty in any marine policy on insurab
le property,
fi1054 other than a ship, that the insurable property is seaworthy.
fi1054 (2) There is an implied warranty in every voyage policy on insurable prop
erty,
fi1054 other than a ship, that, at the commencement of the voyage, the ship is s
eaworthy
fi1054 and reasonably fit to carry the insurable property to the destination con
templated
fi1054 by the policy.
fi344 {\fs21 The}{\fs21 implied}{\fs21 warranty}{\fs21 of}{\fs21 seaworthine

ss}{\fs21 applies}{\fs21 with}{\fs21 full}{\fs21 effect}{\fs21 only}{\fs21
to}{\fs21 voyage}{\fs21 policies.}{\fs21 The }
fi344 {\fs21 warranty}{\fs21 is}{\fs21 that}{\fs21 the}{\fs21 ship}{\fs21 w
ill}{\fs21 be}{\fs21 seaworthy}{\fs21 "at}{\fs21 the}{\fs21 commencement}{\
fs21 of}{\fs21 the}{\fs21 voyage"}{\fs21 for}{\fs21 the }
fi344 {\fs21 particular}{\fs21 adventure}{\fs21 insured.}{\fs21 A}{\fs21 sea
worthy}{\fs21 ship}{\fs21 is}{\fs21 one}{\fs21 that}{\fs21 is}{\fs21 "reas
onably}{\fs21 fit}{\fs21 in}{\fs21 all}{\fs21 respects}{\fs21 to }
fi344 {\fs21 encounter}{\fs21 the}{\fs21 ordinary}{\fs21 perils}{\fs21 of}{\
fs21 the}{\fs21 adventure}{\fs21 insured".}{\fs21 In}{\fs21 a}{\fs21 time}
{\fs21 policy}{\fs21 there}{\fs21 is}{\fs21 no}{\fs21 warranty}{\fs21 of }
fi344 {\fs21 seaworthiness}{\fs21 but}{\fs21 "where,}{\fs21 with}{\fs21 the}
{\fs21 privity}{\fs21 of}{\fs21 the}{\fs21 assured,}{\fs21 the}{\fs21 ship
}{\fs21 is}{\fs21 sent}{\fs21 to}{\fs21 sea}{\fs21 in}{\fs21 an }
fi344 {\fs21 unseaworthy}{\fs21 state,}{\fs21 the}{\fs21 insurer}{\fs21 is}{
\fs21 not}{\fs21 liable}{\fs21 for}{\fs21 any}{\fs21 loss}{\fs21 attributa
ble}{\fs21 to}{\fs21 unseaworthiness".}{\fs21 Thus, }
fi344 {\fs21 in}{\fs21 a}{\fs21 voyage}{\fs21 policy}{\fs21 the}{\fs21 insu
rer}{\fs21 needs}{\fs21 to}{\fs21 prove}{\fs21 only}{\fs21 one}{\fs21 thin
g;}{\fs21 that}{\fs21 the}{\fs21 ship}{\fs21 was}{\fs21 unseaworthy}{\fs21
at }
fi344 {\fs21 the}{\fs21 commencement}{\fs21 of}{\fs21 the}{\fs21 voyage.}{\f
s21 In}{\fs21 a}{\fs21 time}{\fs21 policy,}{\fs21 on}{\fs21 the}{\fs21 ot
her}{\fs21 hand,}{\fs21 the}{\fs21 insurer}{\fs21 needs}{\fs21 to}{\fs21 p
rove }
fi344 {\fs21 three}{\fs21 things;}{\fs21 that}{\fs21 the}{\fs21 ship}{\fs21
was}{\fs21 unseaworthy,}{\fs21 that}{\fs21 the}{\fs21 unseaworthiness}{\fs2
1 caused}{\fs21 the}{\fs21 loss,}{\fs21 and}{\fs21 that }
fi344 {\fs21 the}{\fs21 assured}{\fs21 was}{\fs21 privy}{\fs21 to}{\fs21 th
e}{\fs21 unseaworthy}{\fs21 state}{\fs21 of}{\fs21 the}{\fs21 ship. }
fi344 {\fs21 The}{\fs21 warranty}{\fs21 of}{\fs21 seaworthiness}{\fs21 relat
es}{\fs21 not}{\fs21 only}{\fs21 to}{\fs21 the}{\fs21 hull}{\fs21 but}{\fs
21 also}{\fs21 to}{\fs21 the}{\fs21 machinery}{\fs21 and }
fi344 {\fs21 equipment,}{\fs21 the}{\fs21 crew,}{\fs21 and}{\fs21 the}{\fs21
way}{\fs21 in}{\fs21 which}{\fs21 a}{\fs21 ship}{\fs21 is}{\fs21 loaded}
{\fs21 (or}{\fs21 overloaded).}{\fs21 In}{\fs21 Laing}{\fs21 v}{\fs21 Bore
al }
fi344 {\fs21 Pacific}{\fs21 (2000)}{\fs21 264}{\fs21 N.R.}{\fs21 378,}{\fs21
which}{\fs21 concerned}{\fs21 a}{\fs21 time}{\fs21 policy,}{\fs21 it}{\fs
21 was}{\fs21 held}{\fs21 that}{\fs21 an}{\fs21 overloaded }
fi344 {\fs21 vessel}{\fs21 was}{\fs21 unseaworthy}{\fs21 to}{\fs21 the}{\fs2
1 knowledge}{\fs21 of}{\fs21 the}{\fs21 owner}{\fs21 and}{\fs21 the}{\fs21
insurer}{\fs21 was}{\fs21 entitled}{\fs21 to}{\fs21 avoid }
fi344 {\fs21 liability. }
fi344 {\fs21 There}{\fs21 is}{\fs21 no}{\fs21 implied}{\fs21 warranty}{\fs21

of}{\fs21 seaworthiness}{\fs21 with}{\fs21 respect}{\fs21 to}{\fs21 prope
rty}{\fs21 other}{\fs21 than}{\fs21 a}{\fs21 ship,}{\fs21 i.e.}{\fs21 to }
fi344 {\fs21 cargo}{\fs21 but,}{\fs21 if}{\fs21 the}{\fs21 policy}{\fs21 is
}{\fs21 a}{\fs21 voyage}{\fs21 policy}{\fs21 there}{\fs21 is}{\fs21 an}{\f
s21 implied}{\fs21 warranty}{\fs21 that}{\fs21 the}{\fs21 ship}{\fs21 is
}
fi344 {\fs21 seaworthy. }
f0 {\b\i \f10 \fs25 8.3}{\b\i \f10 \fs25 Express}{\b\i \f10 \fs25 Warranties }
f0 \fi281 {\b \f10 \fs25 8.3.1}{\b \f10 \fs25 s.33}{\b \f10 \fs25 MIA }
fi1054 {\b 33.} (1) An express warranty may be in any form of words from which t
he intention
fi1054 to warrant may be inferred.
fi1054 (2) An express warranty must be included in, or written on, the marine po
licy or be
fi1054 contained in a document incorporated by reference into the policy.
fi1054 (3) An express warranty does not exclude an implied warranty, unless they
are
fi1054 inconsistent.
f0 \fi281 {\b \f10 \fs25 8.3.2}{\b \f10 \fs25 Express}{\b \f10 \fs25 Warranty}
{\b \f10 \fs25 v}{\b \f10 \fs25 Suspensive}{\b \f10 \fs25 Conditions }
f0 \fi485 {\fs21 Pursuant}{\fs21 to}{\fs21 s.}{\fs21 33,}{\fs21 an}{\fs21 e
xpress}{\fs21 warranty}{\fs21 may}{\fs21 be}{\fs21 in}{\fs21 any}{\fs21 fo
rm}{\fs21 of}{\fs21 words}{\fs21 from}{\fs21 which}{\fs21 the}{\fs21 inten
tion }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 20 \par
}
}
21 \cf0 to warrant may be inferred. Unfortunately, it has proven difficult for i
nsurers to find the exact
i204 words that will lead to the required inference. Words such as "warranted th
at" have been held
i204 to not necessarily delineate a warranty (Century Insurance Company of Canad
a v Case
i204 Existological Laboratories Ltd. (The "BAMCELL II"), [1983] 2 S.C.R. 47) Sim
ilarly, the
i204 words "warranted free from any claim..." were held not to delineate a warra
nty in Tulloch v
i204 Canada, (1989) 96 N.R. 51. In both of these cases the courts held that it
is necessary to
i204 distinguish between a true warranty and warranty that merely delimits and i
s part of the
i204 description of the risk. The latter is often referred to as a "suspensive c
ondition". The
i204 difference between the two is the consequence that flows from the breach. A
breach of a true
i204 warranty discharges the insurer from liability from the time of the breach.
A breach of a
i204 suspensive condition, on the other hand, merely interrupts or suspends the
coverage during the
i204 currency of the breach.
0 \fi204 The words of the policy must therefore be carefully considered to deter
mine whether a
i204 particular provision is a true warranty. Where the words used specifically
provide that a breach
i204 of a particular provision will discharge the insurer from liability from th
e date of the breach,
i204 then the provision will most likely be construed as a true warranty. Howeve
r, if the
i204 consequences of a breach are not described, regard must be had to the natur
e of the provision
i204 and the surrounding circumstances to determine its proper classification.
0 {\b \f10 \fs25 8.3.3}{\b \f10 \fs25 Examples}{\b \f10 \fs25 of}{\b \f10 \fs2
5 Express}{\b \f10 \fs25 Warranties }
0 \fi204 The number and type of express warranties are limited only by the imagi
nation and ingenuity
i204 of underwriters. Almost anything can be made to be an express warranty prov
ided the proper
i204 words are used. Notwithstanding this total freedom to make almost anything
a warranty most
i204 policies contain relatively few. The more common express warranties are:
0 \fi772 {\f0\fs21 \bullet }{\f40 \fs16 }
Navigation and trading warranties t
hat limit the geographical areas in which a vessel
i1054 may operate;
0 \fi772 {\f0\fs21 \bullet }{\f40 \fs16 }
Laid up and out of commission warra
nties that require a vessel to be laid up for a
i1054 defined period or generally;
0 \fi772 {\f0\fs21 \bullet }{\f40 \fs16 }
Identity of the master warranties t
hat require a named person to command the vessel;
0 \fi772 {\f0\fs21 \bullet }{\f40 \fs16 }
Towing warranties that prohibit the
insured vessel from being towed except where
i1054 customary or when the vessel is in need of assistance;
0 \fi772 {\f0\fs21 \bullet }{\f40 \fs16 }
Private pleasure use warranties tha
t prohibit any commercial use of a yacht; and
0 \fi772 {\f0\fs21 \bullet }{\f40 \fs16 }
Warranties regarding surveys and in
spections that require inspections to be conducted
i1054 or recommendations by surveyors to be complied with. \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9

\cf0 \fi646 {\i0 \f10 \fs25 8.3.4}{\i0 \f10 \fs25 Consequences}{\i0 \f10 \fs25
of}{\i0 \f10 \fs25 Breach }
\cf0 \fi918 {\f10 \fs21 8.3.4.1}{\f10 \fs21 s.39}{\f10 \fs21 MIA }\par
}
cf0 21 \par
}
}
{\phpg\posx1986\pvpg\posy2713\absw9582\absh6388 \b \f20 \fs19 \cf0 \fi707 \b \f2
0 \fs19 \cf0 39.{\b0 (1)}{\b0 Subject}{\b0 to}{\b0 this}{\b0 section,}{\b0
a}{\b0 warranty}{\b0 must}{\b0 be}{\b0 exactly}{\b0 complied}{\b0 with,}{
\b0 whether }
\fi707 {\b0 or}{\b0 not}{\b0 it}{\b0 is}{\b0 material}{\b0 to}{\b0 the}{\b
0 risk. }
\fi707 {\b0 (2)}{\b0 Subject}{\b0 to}{\b0 any}{\b0 express}{\b0 provision}{
\b0 in}{\b0 the}{\b0 marine}{\b0 policy}{\b0 or}{\b0 any}{\b0 waiver}{\b0
by}{\b0 the }
\fi707 {\b0 insurer,}{\b0 where}{\b0 a}{\b0 warranty}{\b0 is}{\b0 not}{\b0
exactly}{\b0 complied}{\b0 with,}{\b0 the}{\b0 breach}{\b0 of}{\b0 the}{\
b0 warranty }
\fi707 {\b0 discharges}{\b0 the}{\b0 insurer}{\b0 from}{\b0 liability}{\b0
for}{\b0 any}{\b0 loss}{\b0 occurring}{\b0 on}{\b0 or}{\b0 after}{\b0 the
}{\b0 date}{\b0 of }
\fi707 {\b0 the}{\b0 breach,}{\b0 but}{\b0 does}{\b0 not}{\b0 affect}{\b0
any}{\b0 liability}{\b0 incurred}{\b0 by}{\b0 the}{\b0 insurer}{\b0 before
}{\b0 that }
\fi707 {\b0 date. }
\fi707 {\b0 (3)}{\b0 A}{\b0 warranty}{\b0 that}{\b0 the}{\b0 subject-matter
}{\b0 insured}{\b0 is}{\b0 "well"}{\b0 or}{\b0 "in}{\b0 good}{\b0 safety"
}{\b0 on}{\b0 a }
\fi707 {\b0 particular}{\b0 day}{\b0 is}{\b0 not}{\b0 breached}{\b0 if}{\b0
the}{\b0 subject-matter}{\b0 is}{\b0 safe}{\b0 at}{\b0 any}{\b0 time}{\b
0 during}{\b0 that }
\fi707 {\b0 day. }
\fi707 {\b0 (4)}{\b0 A}{\b0 breach}{\b0 of}{\b0 a}{\b0 warranty}{\b0 is}{\
b0 excused}{\b0 if,}{\b0 because}{\b0 of}{\b0 a}{\b0 change}{\b0 of}{\b0
circumstances, }
\fi707 {\b0 the}{\b0 warranty}{\b0 ceases}{\b0 to}{\b0 be}{\b0 applicable}{
\b0 to}{\b0 the}{\b0 circumstances}{\b0 contemplated}{\b0 by}{\b0 the }
\fi707 {\b0 contract}{\b0 or}{\b0 if}{\b0 compliance}{\b0 with}{\b0 the}{\b
0 warranty}{\b0 is}{\b0 rendered}{\b0 unlawful}{\b0 by}{\b0 any }
\fi707 {\b0 subsequent}{\b0 law. }

\fi707 {\b0 (5)}{\b0 It}{\b0 is}{\b0 no}{\b0 defence}{\b0 to}{\b0 a}{\b0
breach}{\b0 of}{\b0 a}{\b0 warranty}{\b0 that}{\b0 the}{\b0 breach}{\b0 w
as}{\b0 remedied}{\b0 and}{\b0 the }
\fi707 {\b0 warranty}{\b0 complied}{\b0 with}{\b0 before}{\b0 any}{\b0 loss
}{\b0 was}{\b0 incurred. }
cf0 {\b0 \fs21 It}{\b0 \fs21 should}{\b0 \fs21 be}{\b0 \fs21 noted}{\b0 \fs21
that}{\b0 \fs21 a}{\b0 \fs21 breach}{\b0 \fs21 of}{\b0 \fs21 a}{\b0 \fs21
warranty}{\b0 \fs21 discharges}{\b0 \fs21 an}{\b0 \fs21 insurer}{\b0 \fs21
from}{\b0 \fs21 liability}{\b0 \fs21 from}{\b0 \fs21 the}{\b0 \fs21 date }
{\b0 \fs21 of}{\b0 \fs21 the}{\b0 \fs21 breach.}{\b0 \fs21 This}{\b0 \fs21 i
s}{\b0 \fs21 the}{\b0 \fs21 case}{\b0 \fs21 even}{\b0 \fs21 if}{\b0 \fs21 t
he}{\b0 \fs21 breach}{\b0 \fs21 is}{\b0 \fs21 remedied}{\b0 \fs21 before}{\b
0 \fs21 any}{\b0 \fs21 loss.}{\b0 \fs21 The}{\b0 \fs21 insurer}{\b0 \fs21 i
s }
{\b0 \fs21 also}{\b0 \fs21 not}{\b0 \fs21 required}{\b0 \fs21 to}{\b0 \fs21
make}{\b0 \fs21 an}{\b0 \fs21 election}{\b0 \fs21 as}{\b0 \fs21 with}{\b0 \f
s21 a}{\b0 \fs21 failure}{\b0 \fs21 to}{\b0 \fs21 disclose}{\b0 \fs21 mater
ial}{\b0 \fs21 facts}{\b0 \fs21 or}{\b0 \fs21 a }
{\b0 \fs21 misrepresentation.}{\b0 \fs21 Moreover,}{\b0 \fs21 there}{\b0 \fs21
is}{\b0 \fs21 no}{\b0 \fs21 requirement}{\b0 \fs21 that}{\b0 \fs21 the}{\b
0 \fs21 warranty}{\b0 \fs21 be}{\b0 \fs21 material}{\b0 \fs21 to}{\b0 \fs21
the}{\b0 \fs21 risk. }
cf0 {\b0 \fs21 The}{\b0 \fs21 consequences}{\b0 \fs21 of}{\b0 \fs21 a}{\b0 \f
s21 breach}{\b0 \fs21 of}{\b0 \fs21 warranty}{\b0 \fs21 may}{\b0 \fs21 only
}{\b0 \fs21 be}{\b0 \fs21 avoided}{\b0 \fs21 by}{\b0 \fs21 an}{\b0 \fs21 ex
press}{\b0 \fs21 relieving }
{\b0 \fs21 provision}{\b0 \fs21 in}{\b0 \fs21 the}{\b0 \fs21 policy}{\b0 \fs2
1 or}{\b0 \fs21 by}{\b0 \fs21 a}{\b0 \fs21 waiver}{\b0 \fs21 of}{\b0 \fs21
the}{\b0 \fs21 breach}{\b0 \fs21 by}{\b0 \fs21 the}{\b0 \fs21 insurer.}{\b0
\fs21 A}{\b0 \fs21 waiver}{\b0 \fs21 will}{\b0 \fs21 only}{\b0 \fs21 be}{\
b0 \fs21 found }
{\b0 \fs21 where}{\b0 \fs21 the}{\b0 \fs21 insurer}{\b0 \fs21 has}{\b0 \fs21
full}{\b0 \fs21 knowledge}{\b0 \fs21 of}{\b0 \fs21 the}{\b0 \fs21 breach}{\
b0 \fs21 and}{\b0 \fs21 demonstrates}{\b0 \fs21 an}{\b0 \fs21 intention}{\b0
\fs21 to}{\b0 \fs21 treat}{\b0 \fs21 the }
{\b0 \fs21 contract}{\b0 \fs21 as}{\b0 \fs21 continuing.}{\b0 \fs21 (Daneau}{
\b0 \fs21 v}{\b0 \fs21 Laurent}{\b0 \fs21 Gendron}{\b0 \fs21 Ltee,}{\b0 \fs2
1 [1964]}{\b0 \fs21 Ll.}{\b0 \fs21 L.}{\b0 \fs21 R.}{\b0 \fs21 220) }\par
}
9 \cf0 9 Losses and Measure of Indemnity
\cf0 \fi274 {\i \fs25 9.1}{\i \fs25 Duty}{\i \fs25 of}{\i \fs25 Assured}{\i \
fs25 to}{\i \fs25 mitigate}{\i \fs25 s.}{\i \fs25 80}{\i \fs25 MIA }
\fi1752 {\f20 \fs19 80.}{\b0 \f20 \fs19 It}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19
the}{\b0 \f20 \fs19 duty}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 an}{\b0 \f20 \f
s19 insured}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 insured's
}{\b0 \f20 \fs19 agent}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 take}{\b0 \f20 \fs1
9 such}{\b0 \f20 \fs19 measures}{\b0 \f20 \fs19 as }

\fi1752 {\b0 \f20 \fs19 are}{\b0 \f20 \fs19 reasonable}{\b0 \f20 \fs19 for}{\
b0 \f20 \fs19 the}{\b0 \f20 \fs19 purpose}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19
averting}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 diminishing}{\b0 \f20 \fs19 a}{\
b0 \f20 \fs19 loss}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 the }
\fi1752 {\b0 \f20 \fs19 marine}{\b0 \f20 \fs19 policy. }
\cf0 \fi274 {\i \fs25 9.2}{\i \fs25 Total}{\i \fs25 Loss}{\i \fs25 ss.54-56}{
\i \fs25 MIA }
\fi1328 {\f20 \fs19 56.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 A}{\b0 \f20 \fs19
loss}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 actual}{\b0 \f20
\fs19 total}{\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 if}{\b0 \f20 \fs19 the}{\b
0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is}{\b0 \
f20 \fs19 destroyed}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 is }
\fi1328 {\b0 \f20 \fs19 so}{\b0 \f20 \fs19 damaged}{\b0 \f20 \fs19 as}{\b0 \f
20 \fs19 to}{\b0 \f20 \fs19 cease}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 be}{\b0
\f20 \fs19 a}{\b0 \f20 \fs19 thing}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{
\b0 \f20 \fs19 kind}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 or}{\b0 \f20 \fs1
9 if}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is }
\fi1328 {\b0 \f20 \fs19 irretrievably}{\b0 \f20 \fs19 deprived}{\b0 \f20 \fs19
of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matter. }
\fi1328 {\b0 \f20 \fs19 (2)}{\b0 \f20 \fs19 Where}{\b0 \f20 \fs19 a}{\b0 \f20
\fs19 ship}{\b0 \f20 \fs19 engaged}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 a}{\b
0 \f20 \fs19 marine}{\b0 \f20 \fs19 adventure}{\b0 \f20 \fs19 is}{\b0 \f20 \f
s19 missing}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 no}{\b0 \f20 \fs19 news}{\b0
\f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 ship }
\fi1328 {\b0 \f20 \fs19 is}{\b0 \f20 \fs19 received}{\b0 \f20 \fs19 within}{\
b0 \f20 \fs19 a}{\b0 \f20 \fs19 reasonable}{\b0 \f20 \fs19 period,}{\b0 \f20
\fs19 an}{\b0 \f20 \fs19 actual}{\b0 \f20 \fs19 total}{\b0 \f20 \fs19 loss}{
\b0 \f20 \fs19 may}{\b0 \f20 \fs19 be}{\b0 \f20 \fs19 presumed. }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 22 \par
}
}
{\phpg\posx1500\pvpg\posy1760\absw10107\absh11458 \b \f10 \fs25 \cf0 \fi281 \b \
f10 \fs25 \cf0 9.2.1 Measure of Indemnity for Total Loss s.67 MIA
0 \fi1054 {\f20 \fs19 67.}{\b0 \f20 \fs19 Subject}{\b0 \f20 \fs19 to}{\b0 \f20
\fs19 this}{\b0 \f20 \fs19 Act}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 any}{\b0
\f20 \fs19 express}{\b0 \f20 \fs19 provision}{\b0 \f20 \fs19 in}{\b0 \f20 \f
s19 the}{\b0 \f20 \fs19 policy,}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 measure}
{\b0 \f20 \fs19 of }
0 \fi1054 {\b0 \f20 \fs19 indemnity}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 respect
}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 total}{\b0 \f20 \fs19
loss}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matter}{\
b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is }
0 \fi1054 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 a}{\b0 \f20 \fs19 )}{\b0 \f20 \fs1
9 in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 case}{\b0 \f20 \fs19 of}{\b0 \f20 \
fs19 an}{\b0 \f20 \fs19 unvalued}{\b0 \f20 \fs19 policy,}{\b0 \f20 \fs19 the
}{\b0 \f20 \fs19 insurable}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \f20
\fs19 the}{\b0 \f20 \fs19 subject-matter;}{\b0 \f20 \fs19 and }
0 \fi1054 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 b}{\b0 \f20 \fs19 )}{\b0 \f20 \fs1
fs19 a}{\b0 \f20 \fs19 valued}{\b0 \f20 \fs19 policy,}{\b0 \f20 \fs19 the}{\
b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 s
ubject-matter}{\b0 \f20 \fs19 specified}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 th
e }
0 \fi1054 {\b0 \f20 \fs19 policy. }
\cf0 {\i 9.3}{\i Constructive}{\i Total}{\i Loss}{\i s.}{\i 57}{\i MIA }
0 \fi201 {\b0 \f20 \fs21 In}{\b0 \f20 \fs21 essence,}{\b0 \f20 \fs21 a}{\b0 \f
20 \fs21 constructive}{\b0 \f20 \fs21 total}{\b0 \f20 \fs21 loss}{\b0 \f20 \f
s21 occurs}{\b0 \f20 \fs21 when}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 insured}
{\b0 \f20 \fs21 property}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 still}{\b0 \f20 \
fs21 in}{\b0 \f20 \fs21 existence}{\b0 \f20 \fs21 but }
0 \fi201 {\b0 \f20 \fs21 either}{\b0 \f20 \fs21 cannot}{\b0 \f20 \fs21 be}{\b0
\f20 \fs21 retrieved}{\b0 \f20 \fs21 or}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21
cost}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 retrieving}{\b0 \f20 \fs21 and/or}{\
b0 \f20 \fs21 repairing}{\b0 \f20 \fs21 it}{\b0 \f20 \fs21 will}{\b0 \f20 \fs
21 exceed}{\b0 \f20 \fs21 its}{\b0 \f20 \fs21 value. }
0 \fi201 {\b0 \f20 \fs21 Constructive}{\b0 \f20 \fs21 total}{\b0 \f20 \fs21 lo
ss}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 defined}{\b0 \f20 \fs21 and}{\b0 \f20 \
fs21 dealt}{\b0 \f20 \fs21 with}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 s.}{\b0 \
f20 \fs21 57}{\b0 \f20 \fs21 MIA}{\b0 \f20 \fs21 but}{\b0 \f20 \fs21 the}{\b
0 \f20 \fs21 parties}{\b0 \f20 \fs21 are}{\b0 \f20 \fs21 free}{\b0 \f20 \fs21
to }
0 \fi201 {\b0 \f20 \fs21 themselves}{\b0 \f20 \fs21 define}{\b0 \f20 \fs21 tho
se}{\b0 \f20 \fs21 situations}{\b0 \f20 \fs21 that}{\b0 \f20 \fs21 will}{\b0
\f20 \fs21 constitute}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 constructive}{\b0 \f2
0 \fs21 total}{\b0 \f20 \fs21 loss}{\b0 \f20 \fs21 under}{\b0 \f20 \fs21 the
ir}{\b0 \f20 \fs21 policy. }
0 \fi1054 {\f20 \fs19 57.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 Unless}{\b0 \f20
\fs19 a}{\b0 \f20 \fs19 marine}{\b0 \f20 \fs19 policy}{\b0 \f20 \fs19 other
wise}{\b0 \f20 \fs19 provides,}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 loss}{\b0 \f
20 \fs19 is}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 constructive}{\b0 \f20 \fs19 t
otal}{\b0 \f20 \fs19 loss }
0 \fi1054 {\b0 \f20 \fs19 if}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matte
r}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 reasonably}{\b0
\f20 \fs19 abandoned}{\b0 \f20 \fs19 because}{\b0 \f20 \fs19 the}{\b0 \f20 \f
s19 actual}{\b0 \f20 \fs19 total}{\b0 \f20 \fs19 loss }
0 \fi1054 {\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matte
r}{\b0 \f20 \fs19 appears}{\b0 \f20 \fs19 unavoidable}{\b0 \f20 \fs19 or}{\b0
\f20 \fs19 the}{\b0 \f20 \fs19 preservation}{\b0 \f20 \fs19 of}{\b0 \f20 \fs
19 the}{\b0 \f20 \fs19 subject-matter }
0 \fi1054 {\b0 \f20 \fs19 from}{\b0 \f20 \fs19 actual}{\b0 \f20 \fs19 total}{\
b0 \f20 \fs19 loss}{\b0 \f20 \fs19 would}{\b0 \f20 \fs19 entail}{\b0 \f20 \fs
19 costs}{\b0 \f20 \fs19 exceeding}{\b0 \f20 \fs19 its}{\b0 \f20 \fs19 value
}{\b0 \f20 \fs19 when}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 costs}{\b0 \f20 \fs
19 are }
0 \fi1054 {\b0 \f20 \fs19 incurred. }
0 \fi1054 {\b0 \f20 \fs19 (2)}{\b0 \f20 \fs19 Without}{\b0 \f20 \fs19 limiting
}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 generality}{\b0 \f20 \fs19 of}{\b0 \f20
\fs19 subsection}{\b0 \f20 \fs19 (1),}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 loss
}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 constructive}{\b0 \f20
\fs19 total }
0 \fi1054 {\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 if }
0 \fi1054 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 a}{\b0 \f20 \fs19 )}{\b0 \f20 \fs1
fs19 a}{\b0 \f20 \fs19 ship}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 goods,}{\b0 \
f20 \fs19 the}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 dep
rived}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 possession}{\b0 \f20 \fs19 of}{\b0 \
f20 \fs19 the}{\b0 \f20 \fs19 ship }
0 \fi1054 {\b0 \f20 \fs19 or}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 by}{\b0 \f2
0 \fs19 reason}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 peril}{\
b0 \f20 \fs19 insured}{\b0 \f20 \fs19 against}{\b0 \f20 \fs19 and}{\b0 \f20 \
fs19 either}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is}{
\b0 \f20 \fs19 unlikely}{\b0 \f20 \fs19 to }
0 \fi1054 {\b0 \f20 \fs19 recover}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 ship}{\b
0 \f20 \fs19 or}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 the
}{\b0 \f20 \fs19 cost}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 recovery}{\b0 \f20 \
fs19 would}{\b0 \f20 \fs19 exceed}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 value}
{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 ship }
0 \fi1054 {\b0 \f20 \fs19 or}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 when}{\b0 \
f20 \fs19 recovered; }
0 \fi1054 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 b}{\b0 \f20 \fs19 )}{\b0 \f20 \fs1
fs19 a}{\b0 \f20 \fs19 ship,}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 ship}{\b0 \
f20 \fs19 is}{\b0 \f20 \fs19 so}{\b0 \f20 \fs19 damaged}{\b0 \f20 \fs19 by}{
\b0 \f20 \fs19 a}{\b0 \f20 \fs19 peril}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs1
9 against}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 the }
0 \fi1054 {\b0 \f20 \fs19 cost}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 repairing}{\
b0 \f20 \fs19 it}{\b0 \f20 \fs19 would}{\b0 \f20 \fs19 exceed}{\b0 \f20 \fs19
the}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 ship}{\b0 \f20 \fs19 when}{\b0 \f20 \fs19 repaired;}{\b0 \f20 \fs19 or
}
0 \fi1054 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 c}{\b0 \f20 \fs19 )}{\b0 \f20 \fs1
fs19 goods,}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 are}{\
b0 \f20 \fs19 so}{\b0 \f20 \fs19 damaged}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19
the}{\b0 \f20 \fs19 cost}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 repairing}{\b0
\f20 \fs19 and }
0 \fi1054 {\b0 \f20 \fs19 forwarding}{\b0 \f20 \fs19 them}{\b0 \f20 \fs19 to}{
\b0 \f20 \fs19 their}{\b0 \f20 \fs19 destination}{\b0 \f20 \fs19 would}{\b0 \
f20 \fs19 exceed}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19 o
f}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 on }
0 \fi1054 {\b0 \f20 \fs19 arrival. }
0 \fi1054 {\b0 \f20 \fs19 (3)}{\b0 \f20 \fs19 For}{\b0 \f20 \fs19 the}{\b0 \f2
0 \fs19 purposes}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 paragraph}{\b0 \f20 \fs19
(2)(}{\b0\i \f20 \fs19 b}{\b0 \f20 \fs19 ),}{\b0 \f20 \fs19 in}{\b0 \f20 \fs1
9 estimating}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 cost}{\b0 \f20 \fs19 of}{\b
0 \f20 \fs19 repairing}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 ship, }
0 \fi1054 {\b0 \f20 \fs19 no}{\b0 \f20 \fs19 deduction}{\b0 \f20 \fs19 may}{\b
0 \f20 \fs19 be}{\b0 \f20 \fs19 made}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 resp
ect}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 general}{\b0 \f20 \fs19 average}{\b0 \
f20 \fs19 contributions}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs1
9 repairs }
0 \fi1054 {\b0 \f20 \fs19 payable}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 other}{\b
0 \f20 \fs19 interested}{\b0 \f20 \fs19 persons,}{\b0 \f20 \fs19 but}{\b0 \f2
0 \fs19 account}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 be}{\b
0 \f20 \fs19 taken}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 co
st}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 future }
0 \fi1054 {\b0 \f20 \fs19 salvage}{\b0 \f20 \fs19 operations}{\b0 \f20 \fs19 a
nd}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 future}{\b0 \f20 \f
s19 general}{\b0 \f20 \fs19 average}{\b0 \f20 \fs19 contributions}{\b0 \f20 \
fs19 to}{\b0 \f20 \fs19 which}{\b0 \f20 \fs19 the }
0 \fi1054 {\b0 \f20 \fs19 ship}{\b0 \f20 \fs19 would}{\b0 \f20 \fs19 be}{\b0 \
f20 \fs19 liable}{\b0 \f20 \fs19 if}{\b0 \f20 \fs19 repaired. }
\cf0 \fi281 9.3.1 Abandonment ss.58-60 MIA
0 \fi344 {\b0 \f20 \fs21 Where}{\b0 \f20 \fs21 there}{\b0 \f20 \fs21 is}{\b0 \
f20 \fs21 a}{\b0 \f20 \fs21 constructive}{\b0 \f20 \fs21 total}{\b0 \f20 \fs2
1 loss}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 assured}{\b0 \f20 \fs21 may}{\b0
\f20 \fs21 either}{\b0 \f20 \fs21 treat}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21
loss}{\b0 \f20 \fs21 as}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 partial}{\b0 \f20 \
fs21 loss}{\b0 \f20 \fs21 or }
0 \fi344 {\b0 \f20 \fs21 may}{\b0 \f20 \fs21 treat}{\b0 \f20 \fs21 it}{\b0 \f2
0 \fs21 as}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 total}{\b0 \f20 \fs21 loss.}{\b
0 \f20 \fs21 If}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 assured}{\b0 \f20 \fs21
elects}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 treat}{\b0 \f20 \fs21 it}{\b0 \f20
\fs21 as}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 total}{\b0 \f20 \fs21 loss,}{\b0
\f20 \fs21 the}{\b0 \f20 \fs21 assured}{\b0 \f20 \fs21 must }
0 \fi344 {\b0 \f20 \fs21 abandon}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 property}
{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 its}{\b0 \f20 \fs21 insurers}{\b0 \f20 \fs
21 by}{\b0 \f20 \fs21 delivering}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 notice}{\
b0 \f20 \fs21 of}{\b0 \f20 \fs21 abandonment.}{\b0 \f20 \fs21 The}{\b0 \f20 \
fs21 insurer}{\b0 \f20 \fs21 may }
0 \fi344 {\b0 \f20 \fs21 either}{\b0 \f20 \fs21 accept}{\b0 \f20 \fs21 the}{\b
0 \f20 \fs21 notice}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 abandonment}{\b0 \f20
\fs21 or}{\b0 \f20 \fs21 reject}{\b0 \f20 \fs21 it.}{\b0 \f20 \fs21 If}{\b0
\f20 \fs21 the}{\b0 \f20 \fs21 insurer}{\b0 \f20 \fs21 accepts}{\b0 \f20 \fs2
1 the}{\b0 \f20 \fs21 notice}{\b0 \f20 \fs21 it}{\b0 \f20 \fs21 becomes }
0 \fi344 {\b0 \f20 \fs21 obligated}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 pay}{\b0
\f20 \fs21 as}{\b0 \f20 \fs21 though}{\b0 \f20 \fs21 there}{\b0 \f20 \fs21
was}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 total}{\b0 \f20 \fs21 loss}{\b0 \f20 \f
s21 and}{\b0 \f20 \fs21 it}{\b0 \f20 \fs21 acquires}{\b0 \f20 \fs21 the}{\b0
\f20 \fs21 interest}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21
assured}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 the }
0 \fi344 {\b0 \f20 \fs21 property. }
0 \fi1054 {\f20 \fs19 58.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 An}{\b0 \f20 \fs
19 insured}{\b0 \f20 \fs19 may}{\b0 \f20 \fs19 treat}{\b0 \f20 \fs19 a}{\b0
\f20 \fs19 constructive}{\b0 \f20 \fs19 total}{\b0 \f20 \fs19 loss}{\b0 \f20
\fs19 as}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 partial}{\b0 \f20 \fs19 loss}{\b0
\f20 \fs19 or}{\b0 \f20 \fs19 may }
0 \fi1054 {\b0 \f20 \fs19 abandon}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subjectmatter}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f
20 \fs19 insurer}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 treat}{\b0 \f20 \fs19 t
he}{\b0 \f20 \fs19 constructive}{\b0 \f20 \fs19 total }
0 \fi1054 {\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 as}{\b0 \f20 \fs19 an}{\b0 \f20
\fs19 actual}{\b0 \f20 \fs19 total}{\b0 \f20 \fs19 loss. }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 23 \par
}
}
(2) Subject to this section and section 59, an insured who elects to abandon the
ject-matter insured to the insurer must give a notice of abandonment to the
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 ins
urer with reasonable diligence after the insured receives reliable information o
f
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 the
loss.
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-362 \f20 \fs19 \cf0 (3)
An insured who receives doubtful information of a loss is entitled to a
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 rea
sonable time to make inquiries before giving a notice of abandonment.
An insured may give a notice of abandonment orally or in writing, or partly
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 ora
lly and partly in writing, and in any terms that indicate the insured's intentio
n to
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 aba
ndon unconditionally the insured interest in the subject-matter to the insurer.
If an insured fails to give a notice of abandonment as required by this section
,
constructive total loss may be treated only as a partial loss.
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-367 \f20 \fs19 \cf0 {\b
59.} (1) An insured is not required to give a notice of abandonment to the insu
rer if
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-364 \f20 \fs19 \cf0 ({\
i a}) the loss is an actual total loss;
i b}) notice is waived by the insurer; or
i c}) at the time the insured receives information of the loss, there is no poss
ibility of
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 ben
efit to the insurer if notice were given to the insurer.
An insurer who has reinsured a risk is not required to give a notice of
ndonment to the reinsurer.
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-367 \f20 \fs19 \cf0 {\b
60.} (1) If an insured gives a notice of abandonment as required by section 58,
the
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 rig
hts of the insured are not prejudiced by a refusal of the insurer to accept the
ndonment.
An acceptance of an abandonment may be either express or implied from the

\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 con
duct of the insurer, but the mere silence of an insurer after a notice of
ndonment is given does not constitute an acceptance.
On acceptance of an abandonment, the abandonment is irrevocable.
On acceptance of an abandonment, the insurer
i a}) conclusively admits liability for the loss and the sufficiency of the noti
ce of
ndonment; and
i b}) is entitled to acquire the interest of the insured in whatever remains of
the
ject-matter insured, including all proprietary rights incidental thereto.
On acceptance of the abandonment of a ship, the insurer is entitled to
i a}) any freight being earned at the time of, or earned subsequent to, the casu
alty
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 cau
sing the loss, less the costs incurred in earning it after the casualty; and
i b}) if the ship is carrying the shipowner's goods, reasonable remuneration for
the
\par}{\phpg\posx2554\pvpg\posy1755\absw7383\absh9520 \sl-250 \f20 \fs19 \cf0 car
riage of the goods subsequent to the casualty. \par
}
{\phpg\posx1500\pvpg\posy13066\absw8319\absh1081 \b\i \f10 \fs25 \cf0 \b\i \f10
\fs25 \cf0 9.4 Partial Losses
\par}{\phpg\posx1500\pvpg\posy13066\absw8319\absh1081 \sl-384 \b\i \f10 \fs25 \c
f0 \fi1054 {\i0 \f20 \fs19 61.}{\b0\i0 \f20 \fs19 (1)}{\b0\i0 \f20 \fs19 A}{\b
0\i0 \f20 \fs19 partial}{\b0\i0 \f20 \fs19 loss}{\b0\i0 \f20 \fs19 is}{\b0\i0
\f20 \fs19 any}{\b0\i0 \f20 \fs19 loss}{\b0\i0 \f20 \fs19 that}{\b0\i0 \f20
\fs19 is}{\b0\i0 \f20 \fs19 not}{\b0\i0 \f20 \fs19 a}{\b0\i0 \f20 \fs19 tota
l}{\b0\i0 \f20 \fs19 loss. }
f0 \fi1054 {\b0\i0 \f20 \fs19 (2)}{\b0\i0 \f20 \fs19 Where}{\b0\i0 \f20 \fs19
insured}{\b0\i0 \f20 \fs19 goods}{\b0\i0 \f20 \fs19 reach}{\b0\i0 \f20 \fs19
their}{\b0\i0 \f20 \fs19 destination}{\b0\i0 \f20 \fs19 in}{\b0\i0 \f20 \fs19
specie}{\b0\i0 \f20 \fs19 but}{\b0\i0 \f20 \fs19 cannot}{\b0\i0 \f20 \fs19 b
e}{\b0\i0 \f20 \fs19 identified }
f0 \fi1054 {\b0\i0 \f20 \fs19 by}{\b0\i0 \f20 \fs19 reason}{\b0\i0 \f20 \fs19
of}{\b0\i0 \f20 \fs19 obliteration}{\b0\i0 \f20 \fs19 of}{\b0\i0 \f20 \fs19 m
arks}{\b0\i0 \f20 \fs19 or}{\b0\i0 \f20 \fs19 otherwise,}{\b0\i0 \f20 \fs19 t
he}{\b0\i0 \f20 \fs19 loss,}{\b0\i0 \f20 \fs19 if}{\b0\i0 \f20 \fs19 any,}{\b
0\i0 \f20 \fs19 is}{\b0\i0 \f20 \fs19 a}{\b0\i0 \f20 \fs19 partial}{\b0\i0 \f
20 \fs19 loss. }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 24 \par
}
}
{\phpg\posx2554\pvpg\posy1755\absw7359\absh358 \f20 \fs19 \cf0 \f20 \fs19 \cf0 (
3) Unless a marine policy otherwise provides, an insured who brings an action fo
r
\par}{\phpg\posx2554\pvpg\posy1755\absw7359\absh358 \sl-250 \f20 \fs19 \cf0 a to
tal loss but establishes only a partial loss may recover for a partial loss. \pa
r
}
{\phpg\posx1500\pvpg\posy2886\absw8549\absh10542 \b \f10 \fs25 \cf0 \fi281 \b \f
10 \fs25 \cf0 9.4.1 Measure of Indemnity for Partial Loss
\cf0 \fi554 {\i \fs21 9.4.1.1}{\i \fs21 Of}{\i \fs21 Ship }
\fi1054 {\f20 \fs19 68.}{\b0 \f20 \fs19 Subject}{\b0 \f20 \fs19 to}{\b0 \f20
\fs19 any}{\b0 \f20 \fs19 express}{\b0 \f20 \fs19 provision}{\b0 \f20 \fs19
in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 marine}{\b0 \f20 \fs19 policy,}{\b0 \f
20 \fs19 the}{\b0 \f20 \fs19 measure}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 inde
mnity }
\fi1054 {\b0 \f20 \fs19 in}{\b0 \f20 \fs19 respect}{\b0 \f20 \fs19 of}{\b0 \f
20 \fs19 a}{\b0 \f20 \fs19 partial}{\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 of}{
\b0 \f20 \fs19 a}{\b0 \f20 \fs19 ship}{\b0 \f20 \fs19 is }
\fi1054 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 a}{\b0 \f20 \fs19 )}{\b0 \f20 \fs19
where}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 ship}{\b0 \f20 \fs19 is}{\b0 \f20
\fs19 repaired,}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 reasonable}{\b0 \f20 \fs
19 cost}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 repairs}{\b0
\f20 \fs19 less}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 customary }
\fi1054 {\b0 \f20 \fs19 deductions,}{\b0 \f20 \fs19 but}{\b0 \f20 \fs19 not}{
\b0 \f20 \fs19 exceeding}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 sum}{\b0 \f20 \f
s19 insured}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 respect}{\b0 \f20 \fs19 of}{\
b0 \f20 \fs19 any}{\b0 \f20 \fs19 one}{\b0 \f20 \fs19 casualty; }
\fi1054 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 b}{\b0 \f20 \fs19 )}{\b0 \f20 \fs19
\fs19 partially}{\b0 \f20 \fs19 repaired,}{\b0 \f20 \fs19 the}{\b0 \f20 \fs1
9 aggregate}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 reasonabl
e}{\b0 \f20 \fs19 cost}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the }
\fi1054 {\b0 \f20 \fs19 repairs,}{\b0 \f20 \fs19 as}{\b0 \f20 \fs19 determine
d}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 paragraph}{\b0 \f20 \fs19 (}{\b0\i \f
20 \fs19 a}{\b0 \f20 \fs19 ),}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 the}{\b0 \f2
0 \fs19 reasonable}{\b0 \f20 \fs19 depreciation,}{\b0 \f20 \fs19 if}{\b0 \f20
\fs19 any, }
\fi1054 {\b0 \f20 \fs19 arising}{\b0 \f20 \fs19 from}{\b0 \f20 \fs19 the}{\b0
\f20 \fs19 unrepaired}{\b0 \f20 \fs19 damage,}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 aggregate}{\b0 \f20 \fs19 not}{\b0 \f20 \fs19 exceeding}{\b0 \f20 \fs19
the}{\b0 \f20 \fs19 cost,}{\b0 \f20 \fs19 as }
\fi1054 {\b0 \f20 \fs19 determined}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 para
graph}{\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 a}{\b0 \f20 \fs19 ),}{\b0 \f20 \fs19
of}{\b0 \f20 \fs19 repairing}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 whole}{\b0
\f20 \fs19 damage;}{\b0 \f20 \fs19 and }
\fi1054 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 c}{\b0 \f20 \fs19 )}{\b0 \f20 \fs19
\fs19 not}{\b0 \f20 \fs19 repaired}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 is}{
\b0 \f20 \fs19 not}{\b0 \f20 \fs19 sold}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 a
}{\b0 \f20 \fs19 damaged}{\b0 \f20 \fs19 state}{\b0 \f20 \fs19 during}{\b0 \f
20 \fs19 the}{\b0 \f20 \fs19 risk, }
\fi1054 {\b0 \f20 \fs19 the}{\b0 \f20 \fs19 reasonable}{\b0 \f20 \fs19 deprec
iation}{\b0 \f20 \fs19 arising}{\b0 \f20 \fs19 from}{\b0 \f20 \fs19 the}{\b0
\f20 \fs19 unrepaired}{\b0 \f20 \fs19 damage,}{\b0 \f20 \fs19 but}{\b0 \f20 \
fs19 not}{\b0 \f20 \fs19 exceeding }
\fi1054 {\b0 \f20 \fs19 the}{\b0 \f20 \fs19 cost,}{\b0 \f20 \fs19 as}{\b0 \f2
0 \fs19 determined}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 paragraph}{\b0 \f20
\fs19 (}{\b0\i \f20 \fs19 a}{\b0 \f20 \fs19 ),}{\b0 \f20 \fs19 of}{\b0 \f20 \f
s19 repairing}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 damage. }
\cf0 \fi554 {\i \fs21 9.4.1.2}{\i \fs21 Of}{\i \fs21 Goods }
\fi1054 {\f20 \fs19 70.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 Subject}{\b0 \f20
\fs19 to}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 express}{\b0 \f20 \fs19 provis
ion}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 policy,}{\b0 \f20
\fs19 the}{\b0 \f20 \fs19 measure}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 indemni
ty}{\b0 \f20 \fs19 in }
\fi1054 {\b0 \f20 \fs19 respect}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 a}{\b0 \f2
0 \fs19 partial}{\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 good
s}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 movables}{\b0 \f20 \fs19 is }
where}{\b0 \f20 \fs19 part}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 goods}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 movables}{\b0 \f20 \fs19 ins
ured}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 unvalued}{\b0 \f20
\fs19 policy}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 totally }
\fi1054 {\b0 \f20 \fs19 lost,}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insurable}{
\b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19
part}{\b0 \f20 \fs19 lost,}{\b0 \f20 \fs19 ascertained}{\b0 \f20 \fs19 as}{\b
0 \f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 case}{\b0 \f20 \fs19 of}
{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 total}{\b0 \f20 \fs19 loss; }
where}{\b0 \f20 \fs19 part}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 goods}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 movables}{\b0 \f20 \fs19 ins
ured}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 valued}{\b0 \f20 \f
s19 policy}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 totally}{\b0 \f20 \fs19 lost,
}
\fi1054 {\b0 \f20 \fs19 that}{\b0 \f20 \fs19 proportion}{\b0 \f20 \fs19 of}{\
b0 \f20 \fs19 the}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 t
he}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 movables}{\b0 \f2
0 \fs19 specified}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 pol
icy}{\b0 \f20 \fs19 that }
\fi1054 {\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insurable}{\b0 \f20 \fs19 value}{
\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 part}{\b0 \f20 \fs19 l
ost}{\b0 \f20 \fs19 bears}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f20 \f
s19 insurable}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 all}{
\b0 \f20 \fs19 the}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 or }
\fi1054 {\b0 \f20 \fs19 movables,}{\b0 \f20 \fs19 ascertained}{\b0 \f20 \fs19
as}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 case}{\b0 \f20 \fs
19 of}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 unvalued}{\b0 \f20 \fs19 policy;}{\
b0 \f20 \fs19 and }
where}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 whole}{\b0 \f20 \fs19 or}{\b0 \f2
0 \fs19 any}{\b0 \f20 \fs19 part}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0
\f20 \fs19 goods}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 movables}{\b0 \f20 \fs19
is}{\b0 \f20 \fs19 delivered}{\b0 \f20 \fs19 damaged}{\b0 \f20 \fs19 at }
\fi1054 {\b0 \f20 \fs19 its}{\b0 \f20 \fs19 destination,}{\b0 \f20 \fs19 that
}{\b0 \f20 \fs19 proportion}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 insurable}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 all
}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19
movables, }
\fi1054 {\b0 \f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 case}{\b0 \f20
\fs19 of}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 unvalued}{\b0 \f20 \fs19 policy
,}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 value}{\b0 \f20 \fs1
9 of}{\b0 \f20 \fs19 all}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 goods}{\b0 \f20
\fs19 or}{\b0 \f20 \fs19 movables }
\fi1054 {\b0 \f20 \fs19 specified}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 the}{\b0
\f20 \fs19 policy,}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 c
ase}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 valued}{\b0 \f20 \fs
19 policy,}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 differen
ce}{\b0 \f20 \fs19 between }
\fi1054 {\b0 \f20 \fs19 the}{\b0 \f20 \fs19 gross}{\b0 \f20 \fs19 value}{\b0
\f20 \fs19 of}{\b0 \f20 \fs19 all}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 goods}
{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 movables}{\b0 \f20 \fs19 in}{\b0 \f20 \fs1
9 a}{\b0 \f20 \fs19 sound}{\b0 \f20 \fs19 condition}{\b0 \f20 \fs19 at}{\b0
\f20 \fs19 that}{\b0 \f20 \fs19 destination }
\fi1054 {\b0 \f20 \fs19 and}{\b0 \f20 \fs19 their}{\b0 \f20 \fs19 gross}{\b0
\f20 \fs19 value}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 their}{\b0 \f20 \fs19 da
maged}{\b0 \f20 \fs19 condition}{\b0 \f20 \fs19 at}{\b0 \f20 \fs19 that}{\b0
\f20 \fs19 destination}{\b0 \f20 \fs19 bears}{\b0 \f20 \fs19 to}{\b0 \f20 \fs
19 the }
\fi1054 {\b0 \f20 \fs19 gross}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \
f20 \fs19 all}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 goods}{\b0 \f20 \fs19 or}{
\b0 \f20 \fs19 movables}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19
sound}{\b0 \f20 \fs19 condition}{\b0 \f20 \fs19 at}{\b0 \f20 \fs19 that}{\b0
\f20 \fs19 destination. }
\cf0 {\i 9.5}{\i Sue}{\i and}{\i Labour}{\i Expenses}{\i s.79}{\i MIA }
\fi1054 {\f20 \fs19 79.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 Where}{\b0 \f20 \
fs19 a}{\b0 \f20 \fs19 marine}{\b0 \f20 \fs19 policy}{\b0 \f20 \fs19 contain
s}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 sue}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19
labour}{\b0 \f20 \fs19 clause,}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 engagement
}
\fi1054 {\b0 \f20 \fs19 thereby}{\b0 \f20 \fs19 entered}{\b0 \f20 \fs19 into}
{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 supplementary}{\b0 \f20 \fs19 to}{\b0 \f20
\fs19 the}{\b0 \f20 \fs19 contract}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 the}
{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 may}{\b0 \f20 \fs19 recover }
\fi1054 {\b0 \f20 \fs19 from}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insurer}{\b0
\f20 \fs19 any}{\b0 \f20 \fs19 expenses}{\b0 \f20 \fs19 properly}{\b0 \f20 \
fs19 incurred}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 clau
se,}{\b0 \f20 \fs19 even}{\b0 \f20 \fs19 if}{\b0 \f20 \fs19 the }
\fi1054 {\b0 \f20 \fs19 insurer}{\b0 \f20 \fs19 has}{\b0 \f20 \fs19 paid}{\b0
\f20 \fs19 for}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 total}{\b0 \f20 \fs19 loss
}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matter}{\b0 \
f20 \fs19 insured}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 sub
ject-matter }
\fi1054 {\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 warranted}
{\b0 \f20 \fs19 free}{\b0 \f20 \fs19 from}{\b0 \f20 \fs19 particular}{\b0 \f2
0 \fs19 average,}{\b0 \f20 \fs19 either}{\b0 \f20 \fs19 wholly}{\b0 \f20 \fs1
9 or}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 a }
\fi1054 {\b0 \f20 \fs19 specified}{\b0 \f20 \fs19 percentage. }
\fi1054 {\b0 \f20 \fs19 (2)}{\b0 \f20 \fs19 General}{\b0 \f20 \fs19 average}{
\b0 \f20 \fs19 losses,}{\b0 \f20 \fs19 general}{\b0 \f20 \fs19 average}{\b0 \
f20 \fs19 contributions,}{\b0 \f20 \fs19 salvage}{\b0 \f20 \fs19 charges,}{\b
0 \f20 \fs19 and }
\fi1054 {\b0 \f20 \fs19 expenses}{\b0 \f20 \fs19 incurred}{\b0 \f20 \fs19 for
}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 purpose}{\b0 \f20 \fs19 of}{\b0 \f20 \fs
19 averting}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 diminishing}{\b0 \f20 \fs19 a
}{\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 p
eril}{\b0 \f20 \fs19 not }
\fi1054 {\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 against}{\b0 \f20 \fs19 are}{
\b0 \f20 \fs19 not}{\b0 \f20 \fs19 recoverable}{\b0 \f20 \fs19 under}{\b0 \f2
0 \fs19 a}{\b0 \f20 \fs19 sue}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 labour}{\b
0 \f20 \fs19 clause. }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi364 {\f10 \fs25 9.6}{\f10 \fs25 Third}{\f10 \fs25 Party}{\f10 \fs25 L
iability}{\f10 \fs25 s.73}{\f10 \fs25 MIA }\par
}
cf0 25 \par
}
}
{\phpg\posx1500\pvpg\posy2199\absw8511\absh5596 \b \f20 \fs19 \cf0 \fi911 \b \f2
0 \fs19 \cf0 73.{\b0 Subject}{\b0 to}{\b0 any}{\b0 express}{\b0 provision}{
\b0 in}{\b0 the}{\b0 policy,}{\b0 the}{\b0 measure}{\b0 of}{\b0 indemnity
}{\b0 in }
\fi911 {\b0 respect}{\b0 of}{\b0 any}{\b0 liability}{\b0 to}{\b0 a}{\b0 th
ird}{\b0 party}{\b0 that}{\b0 is}{\b0 expressly}{\b0 insured}{\b0 against}
{\b0 by}{\b0 a}{\b0 marine }
\fi911 {\b0 policy}{\b0 is}{\b0 the}{\b0 amount}{\b0 paid}{\b0 or}{\b0 pay
able}{\b0 by}{\b0 the}{\b0 insured}{\b0 to}{\b0 the}{\b0 third}{\b0 party
}{\b0 in}{\b0 respect}{\b0 of}{\b0 the }
\fi911 {\b0 liability. }
cf0 {\i \f10 \fs25 9.7}{\i \f10 \fs25 Proportional}{\i \f10 \fs25 Liability}{\
i \f10 \fs25 s.}{\i \f10 \fs25 75}{\i \f10 \fs25 MIA }
\fi1054 75.{\b0 Where}{\b0 a}{\b0 loss}{\b0 is}{\b0 recoverable}{\b0 under
}{\b0 a}{\b0 marine}{\b0 policy,}{\b0 the}{\b0 insurer,}{\b0 or}{\b0 each
}{\b0 insurer }
\fi1054 {\b0 if}{\b0 there}{\b0 is}{\b0 more}{\b0 than}{\b0 one,}{\b0 is}{
\b0 liable}{\b0 for}{\b0 that}{\b0 proportion}{\b0 of}{\b0 the}{\b0 measu
re}{\b0 of}{\b0 indemnity }
\fi1054 {\b0 in}{\b0 respect}{\b0 of}{\b0 the}{\b0 loss}{\b0 that}{\b0 the
}{\b0 amount}{\b0 subscribed}{\b0 by}{\b0 the}{\b0 insurer}{\b0 is}{\b0 o
f }
\fi1054 {\b0 (}{\b0\i a}{\b0 )}{\b0 in}{\b0 the}{\b0 case}{\b0 of}{\b0 an}{
\b0 unvalued}{\b0 policy,}{\b0 the}{\b0 insurable}{\b0 value}{\b0 of}{\b0
the}{\b0 subject-matter;}{\b0 and }
\fi1054 {\b0 (}{\b0\i b}{\b0 )}{\b0 in}{\b0 the}{\b0 case}{\b0 of}{\b0 a}{\
b0 valued}{\b0 policy,}{\b0 the}{\b0 value}{\b0 of}{\b0 the}{\b0 subject-
matter}{\b0 specified}{\b0 by}{\b0 the }

\fi1054 {\b0 policy. }
cf0 {\i \f10 \fs25 9.8}{\i \f10 \fs25 Successive}{\i \f10 \fs25 Losses}{\i \f1
0 \fs25 s.78}{\i \f10 \fs25 MIA }
\fi1054 78.{\b0 (1)}{\b0 Subject}{\b0 to}{\b0 this}{\b0 Act}{\b0 and}{\b0
unless}{\b0 the}{\b0 marine}{\b0 policy}{\b0 otherwise}{\b0 provides,}{\b0
an }
\fi1054 {\b0 insurer}{\b0 is}{\b0 liable}{\b0 for}{\b0 successive}{\b0 loss
es,}{\b0 even}{\b0 if}{\b0 the}{\b0 total}{\b0 amount}{\b0 of}{\b0 the}{\
b0 losses}{\b0 exceeds }
\fi1054 {\b0 the}{\b0 sum}{\b0 insured. }
\fi1054 {\b0 (2)}{\b0 Where,}{\b0 under}{\b0 a}{\b0 marine}{\b0 policy,}{\b
0 a}{\b0 partial}{\b0 loss}{\b0 that}{\b0 has}{\b0 not}{\b0 been}{\b0 re
paired}{\b0 or }
\fi1054 {\b0 otherwise}{\b0 made}{\b0 good}{\b0 is}{\b0 followed}{\b0 by}{\
b0 a}{\b0 total}{\b0 loss,}{\b0 the}{\b0 insurer}{\b0 is}{\b0 liable}{\b0
only}{\b0 for}{\b0 the }
\fi1054 {\b0 total}{\b0 loss. }
\fi1054 {\b0 (3)}{\b0 Nothing}{\b0 in}{\b0 subsections}{\b0 (1)}{\b0 and}{\
b0 (2)}{\b0 shall}{\b0 be}{\b0 construed}{\b0 as}{\b0 affecting}{\b0 the}
{\b0 liability}{\b0 of }
\fi1054 {\b0 an}{\b0 insurer}{\b0 under}{\b0 a}{\b0 sue}{\b0 and}{\b0 labo
ur}{\b0 clause. }\par
}
9 \cf0 10 Prescription Periods and Notice Requirements
\cf0 \fi274 {\i \fs25 10.1}{\i \fs25 Prescription}{\i \fs25 by}{\i \fs25 Stat
ute }
\cf0 \fi476 {\b0 \f20 \fs21 The}{\b0 \f20 \fs21 MIA}{\b0 \f20 \fs21 does}{\b0
\f20 \fs21 not}{\b0 \f20 \fs21 prescribe}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 l
imitation}{\b0 \f20 \fs21 period}{\b0 \f20 \fs21 for}{\b0 \f20 \fs21 a}{\b0 \
f20 \fs21 claim}{\b0 \f20 \fs21 under}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 mari
ne}{\b0 \f20 \fs21 insurance}{\b0 \f20 \fs21 policy.}{\b0 \f20 \fs21 This }
\fi476 {\b0 \f20 \fs21 omission}{\b0 \f20 \fs21 has}{\b0 \f20 \fs21 resulted}
{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 great}{\b0 \f20 \fs21 d
eal}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 uncertainty}{\b0 \f20 \fs21 as}{\b0 \f
20 \fs21 to}{\b0 \f20 \fs21 whether}{\b0 \f20 \fs21 there}{\b0 \f20 \fs21 is
}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 statutory}{\b0 \f20 \fs21 limitation }
\fi476 {\b0 \f20 \fs21 period}{\b0 \f20 \fs21 applicable}{\b0 \f20 \fs21 to}{
\b0 \f20 \fs21 such}{\b0 \f20 \fs21 claims.}{\b0 \f20 \fs21 This}{\b0 \f20 \f
s21 uncertainty}{\b0 \f20 \fs21 arises}{\b0 \f20 \fs21 because}{\b0 \f20 \fs2
1 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 decision}{\b0 \f20 \fs21 of}{\b0 \f
20 \fs21 the}{\b0 \f20 \fs21 Supreme }
\fi476 {\b0 \f20 \fs21 Court}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 Canada}{\b0 \
f20 \fs21 in}{\b0\i \f20 \fs21 Ordon}{\b0\i \f20 \fs21 v}{\b0\i \f20 \fs21
Grail}{\b0 \f20 \fs21 ,}{\b0 \f20 \fs21 [1998]}{\b0 \f20 \fs21 3}{\b0 \f20 \fs
21 S.C.R.}{\b0 \f20 \fs21 437.}{\b0 \f20 \fs21 Until}{\b0 \f20 \fs21 the}{\b
0 \f20 \fs21 decision}{\b0 \f20 \fs21 in}{\b0\i \f20 \fs21 Ordon}{\b0\i \f20
\fs21 v}{\b0\i \f20 \fs21 Grail}{\b0 \f20 \fs21 it }
\fi476 {\b0 \f20 \fs21 was}{\b0 \f20 \fs21 thought}{\b0 \f20 \fs21 that}{\b0
\f20 \fs21 the}{\b0 \f20 \fs21 limitation}{\b0 \f20 \fs21 periods}{\b0 \f20 \
fs21 prescribed}{\b0 \f20 \fs21 by}{\b0 \f20 \fs21 provincial}{\b0 \f20 \fs21
statutes}{\b0 \f20 \fs21 would}{\b0 \f20 \fs21 apply}{\b0 \f20 \fs21 to}{\b
0 \f20 \fs21 marine }
\fi476 {\b0 \f20 \fs21 insurance}{\b0 \f20 \fs21 claims.}{\b0 \f20 \fs21 With
in}{\b0 \f20 \fs21 British}{\b0 \f20 \fs21 Columbia,}{\b0 \f20 \fs21 section}
{\b0 \f20 \fs21 24}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0\i \f20 \fs21
Insurance}{\b0\i \f20 \fs21 Act}{\b0 \f20 \fs21 provides}{\b0 \f20 \fs21 for}
{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 one }
\fi476 {\b0 \f20 \fs21 year}{\b0 \f20 \fs21 limitation}{\b0 \f20 \fs21 period
}{\b0 \f20 \fs21 from}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 time}{\b0 \f20 \fs2
1 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 furnishing}{\b0 \f20 \fs21 of}{\b0
\f20 \fs21 a}{\b0 \f20 \fs21 proof}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 loss.}
{\b0 \f20 \fs21 However,}{\b0 \f20 \fs21 with}{\b0 \f20 \fs21 the }
\fi476 {\b0 \f20 \fs21 decision}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \
f20 \fs21 Supreme}{\b0 \f20 \fs21 Court}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 C
anada}{\b0 \f20 \fs21 in}{\b0\i \f20 \fs21 Ordon}{\b0\i \f20 \fs21 v}{\b0\i
\f20 \fs21 Grail}{\b0 \f20 \fs21 ,}{\b0 \f20 \fs21 [1998]}{\b0 \f20 \fs21 3}{
\b0 \f20 \fs21 S.C.R.}{\b0 \f20 \fs21 437,}{\b0 \f20 \fs21 it}{\b0 \f20 \fs21
is}{\b0 \f20 \fs21 now}{\b0 \f20 \fs21 very }
\fi476 {\b0 \f20 \fs21 doubtful}{\b0 \f20 \fs21 whether}{\b0 \f20 \fs21 provi
ncial}{\b0 \f20 \fs21 limitation}{\b0 \f20 \fs21 periods}{\b0 \f20 \fs21 are}
{\b0 \f20 \fs21 constitutionally}{\b0 \f20 \fs21 applicable}{\b0 \f20 \fs21 t
o}{\b0 \f20 \fs21 matters}{\b0 \f20 \fs21 otherwise }
\fi476 {\b0 \f20 \fs21 governed}{\b0 \f20 \fs21 by}{\b0 \f20 \fs21 Canadian}{
\b0 \f20 \fs21 maritime}{\b0 \f20 \fs21 law,}{\b0 \f20 \fs21 including}{\b0 \
f20 \fs21 marine}{\b0 \f20 \fs21 insurance. }
\cf0 \fi476 {\b0 \f20 \fs21 The}{\b0 \f20 \fs21 question}{\b0 \f20 \fs21 of}{\
b0 \f20 \fs21 the}{\b0 \f20 \fs21 applicable}{\b0 \f20 \fs21 limitation}{\b0
\f20 \fs21 period}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 further}{\b0 \f20 \fs21
complicated}{\b0 \f20 \fs21 by}{\b0 \f20 \fs21 section}{\b0 \f20 \fs21 39}{\
b0 \f20 \fs21 of}{\b0 \f20 \fs21 the }
\fi476 {\b0\i \f20 \fs21 Federal}{\b0\i \f20 \fs21 Court}{\b0\i \f20 \fs21 Ac
t}{\b0 \f20 \fs21 .}{\b0 \f20 \fs21 Section}{\b0 \f20 \fs21 39(1)}{\b0 \f20 \f
s21 provides}{\b0 \f20 \fs21 that}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 laws}{
\b0 \f20 \fs21 relating}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 limitation}{\b0 \f
20 \fs21 "in}{\b0 \f20 \fs21 force}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 any }
\fi476 {\b0 \f20 \fs21 province}{\b0 \f20 \fs21 between}{\b0 \f20 \fs21 subje
ct}{\b0 \f20 \fs21 and}{\b0 \f20 \fs21 subject"}{\b0 \f20 \fs21 apply}{\b0 \f
20 \fs21 to}{\b0 \f20 \fs21 proceedings}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 t
he}{\b0 \f20 \fs21 Federal}{\b0 \f20 \fs21 Court}{\b0 \f20 \fs21 "in}{\b0 \f2
0 \fs21 respect}{\b0 \f20 \fs21 of }
\fi476 {\b0 \f20 \fs21 any}{\b0 \f20 \fs21 cause}{\b0 \f20 \fs21 of}{\b0 \f20
\fs21 action}{\b0 \f20 \fs21 arising}{\b0 \f20 \fs21 in}{\b0 \f20 \fs21 tha
t}{\b0 \f20 \fs21 province".}{\b0 \f20 \fs21 Section}{\b0 \f20 \fs21 39(2)}{\
b0 \f20 \fs21 provides}{\b0 \f20 \fs21 that}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21
cause}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 action}{\b0 \f20 \fs21 arising }\p
ar
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 26 \par
}
}
s21 \cf0 otherwise than within a province is subject to a six year limitation pe
riod.
f0 \fi201 At first reading section 39 of the{\i Federal}{\i Court}{\i Act} wo
uld seem to incorporate by reference the
fi201 applicable provincial limitation period. It may, in fact, do so but only i
n respect of actions
fi201 commenced in the Federal Court. It does not apply to actions commenced in
any other court.
f0 \fi201 The application of provincial limitation periods to maritime matters w
as recently considered by
fi201 the Federal Court in the case of{\i Geist}{\i et.al}{\i v}{\i Vancouve
r}{\i Marina}{\i et}{\i al.} (June 21, 2000) Registry
fi201 No. T-1411-97). In this case Prothonotary Hargrave of the Federal Court he
ld, on the basis of the
fi201 {\i Ordon}{\i v}{\i Grail}, that the British Columbia{\i Limitation}{\i
Act} was constitutionally inapplicable to a
fi201 claim in contract and tort against a marina for damage to a vessel. Simila
r reasoning would likely

fi201 apply in respect of a claim under a marine insurance policy. However, the
Prothonotary also held
fi201 that because of s. 39 (1) of the{\i Federal}{\i Court}{\i Act} the Brit
ish Columbia Limitation Act was
fi201 incorporated as federal law and therefore did apply to the action commence
d in the Federal Court.
f0 \fi201 The important consequence of{\i Geist}{\i et.al}{\i v}{\i Vancouve
r}{\i Marina}{\i et}{\i al.} is that the limitation period
fi201 applicable to a marine insurance claim may depend on the court in which th
e action is
fi201 commenced and where the cause of action arose. If the action is commenced
in the Federal Court
fi201 and the cause of action arose solely within one province, the applicable l
imitation period could be
fi201 that prescribed by the province in which the cause of action arose. If the
action is commenced in
fi201 the Federal Court and the cause of action arose otherwise than within a si
ngle province, the
fi201 applicable limitation period could be the six years prescribed by section
39(2) of the{\i Federal }
fi201 {\i Court}{\i Act}. If the action is commenced in a court other than the
Federal Court section 39 has no
fi201 application and the provincial limitation period is constitutionally inapp
licable. In such a case
fi201 there is either no prescribed limitation period or the matter is governed
by common law equitable
fi201 considerations of undue delay and prejudice rather than definite time limi
ts. ({\i Roscoe's}{\i Admiralty }
fi201 {\i Practice}, (5 {\up006 \fs12 th} ed.) at p.102;{\i The}{\i Kong}{\i
Magnus,} [1891] P. 223)
f0 {\b\i \f10 \fs25 10.2}{\b\i \f10 \fs25 Contractual}{\b\i \f10 \fs25 Limitat
ion}{\b\i \f10 \fs25 and}{\b\i \f10 \fs25 Notice}{\b\i \f10 \fs25 Periods }
f0 \fi201 Some policies of marine insurance expressly provide for actions agains
t insurers to be
fi201 commenced within a set period of time (contractual limitation periods) or
for notice of claims or
fi201 possible claims to be given within a set period of time (contractual notic
e periods). Such
fi201 contractual terms have been upheld and enforced by the courts. (See for ex
ample Robertson v

fi201 Pugh (1888) 15 S.C.R. 706)
f0 \fi201 The validity of contractual limitation periods depends, in part, on th
e legislation that governs the
fi201 particular insurance contract. As we have seen, the legislation governing
the insurance contract
fi201 may depend on the court in which the action is commenced as well as the pl
ace where the cause
fi201 of action arose. Insofar as a matter might be governed by the Insurance Ac
t of British Columbia,
fi201 any contractual term limiting the time for bringing an action would be nul
l and void to the extent
fi201 that it is contrary to the one year period prescribed by section 24. This
follows from section 4 of
fi201 the Act which provides that the statutory limitation period applies "notwi
thstanding any law or
fi201 contract to the contrary". \par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi364 {\f10 \fs25 10.3}{\f10 \fs25 Relief}{\f10 \fs25 Against}{\f10 \fs2
5 Forfeiture }\par
}
cf0 27 \par
}
}
Pursuant to the common law and law of equity as well as various statutes of gene
ral application,
Courts have a power and discretion to relieve against forfeiture. There have b
een many cases
\par}{\phpg\posx1702\pvpg\posy2358\absw9902\absh2365 \sl-274 \f20 \fs21 \cf0 in
which this discretion has been exercised to prevent an insurer from avoiding an
insurance
\par}{\phpg\posx1702\pvpg\posy2358\absw9902\absh2365 \sl-274 \f20 \fs21 \cf0 pol
icy for breach of a condition, including a condition relating to notice. The pr
edominant factor
\par}{\phpg\posx1702\pvpg\posy2358\absw9902\absh2365 \sl-273 \f20 \fs21 \cf0 lea
ding the Courts to exercise this discretion is lack of prejudice. The insurer c
annot simply rely
\par}{\phpg\posx1702\pvpg\posy2358\absw9902\absh2365 \sl-274 \f20 \fs21 \cf0 on
the failure to give notice or the passage of time. Rather, the insurer must sh
ow that it has, in
\par}{\phpg\posx1702\pvpg\posy2358\absw9902\absh2365 \sl-273 \f20 \fs21 \cf0 fac
t, been prejudiced in some material way, such as by a judgement having been rend
ered against
assured or by a disappearance of material witnesses or evidence. It is only wh
en the insurer
\par}{\phpg\posx1702\pvpg\posy2358\absw9902\absh2365 \sl-274 \f20 \fs21 \cf0 can
show actual prejudice that the Courts will not exercise the discretion in favou
r of the assured
\par}{\phpg\posx1702\pvpg\posy2358\absw9902\absh2365 \sl-273 \f20 \fs21 \cf0 and
relieve against the forfeiture of the insurance policy. \par
}
\cf0 11 Subrogation s.81 MIA
\fi1328 {\f20 \fs19 81.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 On}{\b0 \f20 \fs19
payment}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 insurer}{\b0
\f20 \fs19 for}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 total}{\b0 \f20 \fs19 loss}
{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 whole}{\b0 \f20 \fs19
of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matter }
\fi1328 {\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 or,}{\b0 \f20 \fs19 if}{\b0 \f
20 \fs19 the}{\b0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 insured}{\b0 \f20
\fs19 is}{\b0 \f20 \fs19 goods,}{\b0 \f20 \fs19 for}{\b0 \f20 \fs19 any}{\b
0 \f20 \fs19 apportionable}{\b0 \f20 \fs19 part}{\b0 \f20 \fs19 of}{\b0 \f20
\fs19 the }
\fi1328 {\b0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 insured,}{\b0 \f20 \fs19
the}{\b0 \f20 \fs19 insurer}{\b0 \f20 \fs19 becomes}{\b0 \f20 \fs19 entitle
d}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 assume}{\b0 \f20 \fs19 the}{\b0 \f20 \fs
19 interest}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the }
\fi1328 {\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \f
20 \fs19 whole}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 part}{\b0 \f20 \fs19 of}{\
b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 and}{\b0 \f2
0 \fs19 is}{\b0 \f20 \fs19 subrogated}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 all
}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 rights }
\fi1328 {\b0 \f20 \fs19 and}{\b0 \f20 \fs19 remedies}{\b0 \f20 \fs19 of}{\b0 \
f20 \fs19 the}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 res
pect}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 whole}{\b0 \f20
\fs19 or}{\b0 \f20 \fs19 part}{\b0 \f20 \fs19 from}{\b0 \f20 \fs19 the}{\b0
\f20 \fs19 time}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the }
\fi1328 {\b0 \f20 \fs19 casualty}{\b0 \f20 \fs19 causing}{\b0 \f20 \fs19 the}{
\b0 \f20 \fs19 loss. }
\fi1328 {\b0 \f20 \fs19 (2)}{\b0 \f20 \fs19 On}{\b0 \f20 \fs19 payment}{\b0 \f
20 \fs19 by}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 insurer}{\b0 \f20 \fs19 for}{
\b0 \f20 \fs19 a}{\b0 \f20 \fs19 partial}{\b0 \f20 \fs19 loss}{\b0 \f20 \fs19
of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 insur
ed,}{\b0 \f20 \fs19 the }
\fi1328 {\b0 \f20 \fs19 insurer}{\b0 \f20 \fs19 acquires}{\b0 \f20 \fs19 no}{\
b0 \f20 \fs19 title}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 s
ubject-matter}{\b0 \f20 \fs19 but}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 subrogat
ed}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 all}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19
rights}{\b0 \f20 \fs19 and }
\fi1328 {\b0 \f20 \fs19 remedies}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \
f20 \fs19 insured}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 respect}{\b0 \f20 \fs19
of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 from}{
\b0 \f20 \fs19 the}{\b0 \f20 \fs19 time}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 t
he }
\fi1328 {\b0 \f20 \fs19 casualty}{\b0 \f20 \fs19 causing}{\b0 \f20 \fs19 the}{
\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 e
xtent}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insured}{\b0 \
f20 \fs19 is}{\b0 \f20 \fs19 indemnified,}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19
accordance }
\fi1328 {\b0 \f20 \fs19 with}{\b0 \f20 \fs19 this}{\b0 \f20 \fs19 Act,}{\b0 \f
20 \fs19 by}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 payment}{\b0 \f20 \fs19 for}
{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 loss. }\par
}
\cf0 12 Underinsurance, Overinsurance and Double Insurance
cf0 \fi274 {\i \fs25 12.1}{\i \fs25 Underinsurance}{\i \fs25 s.88}{\i \fs25 M
IA }
\fi1186 {\f20 \fs19 88.}{\b0 \f20 \fs19 Where}{\b0 \f20 \fs19 an}{\b0 \f20 \fs
19 insured}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 for}{\
b0 \f20 \fs19 a}{\b0 \f20 \fs19 sum}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 is}
{\b0 \f20 \fs19 less}{\b0 \f20 \fs19 than}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19
insurable}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the }
\fi1186 {\b0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 insured,}{\b0 \f20 \fs19
in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 case}{\b0 \f20 \fs19 of}{\b0 \f20 \f
s19 an}{\b0 \f20 \fs19 unvalued}{\b0 \f20 \fs19 policy,}{\b0 \f20 \fs19 or}{
\b0 \f20 \fs19 less}{\b0 \f20 \fs19 than}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19
value}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the }
\fi1186 {\b0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19
specified}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 policy,}{\b
0 \f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 case}{\b0 \f20 \fs19 of}
{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 valued}{\b0 \f20 \fs19 policy,}{\b0 \f20 \f
s19 the }
\fi1186 {\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 deemed}{\b0
\f20 \fs19 to}{\b0 \f20 \fs19 be}{\b0 \f20 \fs19 self-insured}{\b0 \f20 \fs1
9 in}{\b0 \f20 \fs19 respect}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f2
0 \fs19 uninsured}{\b0 \f20 \fs19 difference. }
cf0 \fi274 {\i \fs25 12.2}{\i \fs25 Overinsurance}{\i \fs25 s.85(8)}{\i \fs25
MIA }
\fi1186 {\b0 \f20 \fs19 85(8)}{\b0 \f20 \fs19 Where}{\b0 \f20 \fs19 an}{\b0 \f
20 \fs19 insured}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 over-insured}{\b0 \f20 \f
s19 under}{\b0 \f20 \fs19 an}{\b0 \f20 \fs19 unvalued}{\b0 \f20 \fs19 policy
,}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 proportionate }
\fi1186 {\b0 \f20 \fs19 part}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 premium}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 returnable. }
cf0 \fi274 {\i \fs25 12.3}{\i \fs25 Double}{\i \fs25 Insurance}{\i \fs25 s.86
}{\i \fs25 MIA }
\fi1328 {\f20 \fs19 86.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 An}{\b0 \f20 \fs19
insured}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 over-insured}{\b0 \f20 \fs19 by}
{\b0 \f20 \fs19 double}{\b0 \f20 \fs19 insurance}{\b0 \f20 \fs19 if}{\b0 \f20
\fs19 two}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 more}{\b0 \f20 \fs19 marine }
\fi1328 {\b0 \f20 \fs19 policies}{\b0 \f20 \fs19 are}{\b0 \f20 \fs19 effected}
{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 on}{\b0 \f20 \fs19 beh
alf}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insured}{\b0 \f20
\fs19 on}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 same}{\b0 \f20 \fs19 marine}{\b
0 \f20 \fs19 adventure }
\fi1328 {\b0 \f20 \fs19 and}{\b0 \f20 \fs19 interest}{\b0 \f20 \fs19 or}{\b0 \
f20 \fs19 part}{\b0 \f20 \fs19 thereof}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 t
he}{\b0 \f20 \fs19 sums}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 exceed}{\b0 \
f20 \fs19 the}{\b0 \f20 \fs19 indemnity}{\b0 \f20 \fs19 allowed}{\b0 \f20 \fs
19 by }\par
}
ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
\cf0 \fi1418 {\b0\i0 \fs19 this}{\b0\i0 \fs19 Act. }\par
}
cf0 28 \par
}

}
\cf0 12.3.1 Rights of Insured s. 86(2) MIA
\fi772 {\b0 \f20 \fs19 86(2)}{\b0 \f20 \fs19 An}{\b0 \f20 \fs19 insured}{\b0 \
f20 \fs19 who}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 over-insured}{\b0 \f20 \fs19
by}{\b0 \f20 \fs19 double}{\b0 \f20 \fs19 insurance }
may}{\b0 \f20 \fs19 claim}{\b0 \f20 \fs19 payment}{\b0 \f20 \fs19 from}{\b0 \
f20 \fs19 the}{\b0 \f20 \fs19 insurers}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 an
y}{\b0 \f20 \fs19 order,}{\b0 \f20 \fs19 unless}{\b0 \f20 \fs19 the}{\b0 \f20
\fs19 marine}{\b0 \f20 \fs19 policy }
\fi772 {\b0 \f20 \fs19 under}{\b0 \f20 \fs19 which}{\b0 \f20 \fs19 the}{\b0 \f
20 \fs19 claim}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 made}{\b0 \f20 \fs19 provi
des}{\b0 \f20 \fs19 otherwise,}{\b0 \f20 \fs19 but}{\b0 \f20 \fs19 may}{\b0 \
f20 \fs19 not}{\b0 \f20 \fs19 receive}{\b0 \f20 \fs19 more}{\b0 \f20 \fs19 t
han }
\fi772 {\b0 \f20 \fs19 the}{\b0 \f20 \fs19 indemnity}{\b0 \f20 \fs19 allowed}{
\b0 \f20 \fs19 by}{\b0 \f20 \fs19 this}{\b0 \f20 \fs19 Act; }
if}{\b0 \f20 \fs19 claiming}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 a}{\b0 \f20
\fs19 valued}{\b0 \f20 \fs19 policy,}{\b0 \f20 \fs19 shall}{\b0 \f20 \fs19
give}{\b0 \f20 \fs19 credit,}{\b0 \f20 \fs19 as}{\b0 \f20 \fs19 against}{\b0
\f20 \fs19 the}{\b0 \f20 \fs19 value }
\fi772 {\b0 \f20 \fs19 specified}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 the}{\b0 \
f20 \fs19 policy,}{\b0 \f20 \fs19 for}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 su
m}{\b0 \f20 \fs19 received}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 the}{\b0 \f20 \
fs19 insured}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 any}{\b0 \f20 \fs19 other
}{\b0 \f20 \fs19 policy }
\fi772 {\b0 \f20 \fs19 without}{\b0 \f20 \fs19 regard}{\b0 \f20 \fs19 to}{\b0
\f20 \fs19 the}{\b0 \f20 \fs19 actual}{\b0 \f20 \fs19 value}{\b0 \f20 \fs19
of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 subject-matter}{\b0 \f20 \fs19 insured
; }
if}{\b0 \f20 \fs19 claiming}{\b0 \f20 \fs19 under}{\b0 \f20 \fs19 an}{\b0 \f2
0 \fs19 unvalued}{\b0 \f20 \fs19 policy,}{\b0 \f20 \fs19 shall}{\b0 \f20 \fs1
9 give}{\b0 \f20 \fs19 credit,}{\b0 \f20 \fs19 as}{\b0 \f20 \fs19 against}{\
b0 \f20 \fs19 the}{\b0 \f20 \fs19 full }
\fi772 {\b0 \f20 \fs19 insurable}{\b0 \f20 \fs19 value,}{\b0 \f20 \fs19 for}{\
b0 \f20 \fs19 any}{\b0 \f20 \fs19 sum}{\b0 \f20 \fs19 received}{\b0 \f20 \fs1
9 by}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 under}{\b0
\f20 \fs19 any}{\b0 \f20 \fs19 other}{\b0 \f20 \fs19 policy;}{\b0 \f20 \fs19
and }
\fi772 {\b0 \f20 \fs19 (}{\b0\i \f20 \fs19 d}{\b0 \f20 \fs19 )}{\b0 \f20 \fs19
is}{\b0 \f20 \fs19 deemed}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 hold}{\b0 \f20 \
fs19 any}{\b0 \f20 \fs19 sum}{\b0 \f20 \fs19 received}{\b0 \f20 \fs19 in}{\b
0 \f20 \fs19 excess}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 i
ndemnity}{\b0 \f20 \fs19 allowed}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 this }
\fi772 {\b0 \f20 \fs19 Act}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 trust}{\b0 \f20
\fs19 for}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 insurers,}{\b0 \f20 \fs19 acco
rding}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 their}{\b0 \f20 \fs19 right}{\b0 \f2
0 \fs19 of}{\b0 \f20 \fs19 contribution}{\b0 \f20 \fs19 among }
\fi772 {\b0 \f20 \fs19 themselves. }
cf0 12.3.2 Rights of Insurers s.87 MIA
\fi772 {\f20 \fs19 87.}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 Where}{\b0 \f20 \fs
19 an}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 over-insure
d}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 double}{\b0 \f20 \fs19 insurance,}{\b0 \
f20 \fs19 each}{\b0 \f20 \fs19 insurer}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 li
able, }
\fi772 {\b0 \f20 \fs19 as}{\b0 \f20 \fs19 between}{\b0 \f20 \fs19 the}{\b0 \f2
0 \fs19 insurer}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 othe
r}{\b0 \f20 \fs19 insurers,}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 contribute}{\b
0 \f20 \fs19 rateably}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19
payment }
\fi772 {\b0 \f20 \fs19 of}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 loss}{\b0 \f20 \fs
19 in}{\b0 \f20 \fs19 proportion}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 the}{\b0
\f20 \fs19 amount}{\b0 \f20 \fs19 for}{\b0 \f20 \fs19 which}{\b0 \f20 \fs19
the}{\b0 \f20 \fs19 insurer}{\b0 \f20 \fs19 is}{\b0 \f20 \fs19 liable}{\b0 \
f20 \fs19 under}{\b0 \f20 \fs19 the }
\fi772 {\b0 \f20 \fs19 insurer's}{\b0 \f20 \fs19 contract. }
\fi772 {\b0 \f20 \fs19 (2)}{\b0 \f20 \fs19 An}{\b0 \f20 \fs19 insurer}{\b0 \f2
0 \fs19 who}{\b0 \f20 \fs19 contributes}{\b0 \f20 \fs19 more}{\b0 \f20 \fs19
to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 payment}{\b0 \f20 \fs19 of}{\b0 \f20
\fs19 a}{\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 than}{\b0 \f20 \fs19 required}{
\b0 \f20 \fs19 by }
\fi772 {\b0 \f20 \fs19 subsection}{\b0 \f20 \fs19 (1)}{\b0 \f20 \fs19 is}{\b0
\f20 \fs19 entitled}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 bring}{\b0 \f20 \fs19
an}{\b0 \f20 \fs19 action}{\b0 \f20 \fs19 against}{\b0 \f20 \fs19 the}{\b0 \
f20 \fs19 other}{\b0 \f20 \fs19 insurers}{\b0 \f20 \fs19 for }
\fi772 {\b0 \f20 \fs19 contribution}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 to}{\b
0 \f20 \fs19 such}{\b0 \f20 \fs19 other}{\b0 \f20 \fs19 remedies}{\b0 \f20 \f
s19 as}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 surety}{\b0 \f20 \fs19 is}{\b0 \f20
\fs19 entitled}{\b0 \f20 \fs19 to}{\b0 \f20 \fs19 for}{\b0 \f20 \fs19 payin
g}{\b0 \f20 \fs19 more }
\fi772 {\b0 \f20 \fs19 than}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 surety's}{\b0
\f20 \fs19 proportion}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 d
ebt. }\par
}
9 \cf0 13 Miscellaneous Issues
\cf0 \fi274 {\i \fs25 13.1}{\i \fs25 Relief}{\i \fs25 Against}{\i \fs25 Forfe
iture }
\cf0 \fi476 {\b0 \f20 \fs21 Most}{\b0 \f20 \fs21 provinces}{\b0 \f20 \fs21 hav
e}{\b0 \f20 \fs21 a}{\b0 \f20 \fs21 statutory}{\b0 \f20 \fs21 provision}{\b0
\f20 \fs21 giving}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 courts}{\b0 \f20 \fs21
the}{\b0 \f20 \fs21 power}{\b0 \f20 \fs21 to}{\b0 \f20 \fs21 relieve}{\b0 \f
20 \fs21 against}{\b0 \f20 \fs21 penalties }

\fi476 {\b0 \f20 \fs21 and}{\b0 \f20 \fs21 forfeiture.}{\b0 \f20 \fs21 Sectio
n}{\b0 \f20 \fs21 24}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21
Law}{\b0 \f20 \fs21 and}{\b0 \f20 \fs21 Equity}{\b0 \f20 \fs21 Act}{\b0 \f20
\fs21 of}{\b0 \f20 \fs21 B.C.}{\b0 \f20 \fs21 is}{\b0 \f20 \fs21 typical: }
\cf0 \fi1186 {\b0 \f20 \fs19 24}{\b0 \f20 \fs19 The}{\b0 \f20 \fs19 court}{\b0
\f20 \fs19 may}{\b0 \f20 \fs19 relieve}{\b0 \f20 \fs19 against}{\b0 \f20 \fs
19 all}{\b0 \f20 \fs19 penalties}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 forfeit
ures,}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 granting}{\b0 \f
20 \fs19 the }
\fi1186 {\b0 \f20 \fs19 relief}{\b0 \f20 \fs19 may}{\b0 \f20 \fs19 impose}{\b
0 \f20 \fs19 any}{\b0 \f20 \fs19 terms}{\b0 \f20 \fs19 as}{\b0 \f20 \fs19 to
}{\b0 \f20 \fs19 costs,}{\b0 \f20 \fs19 expenses,}{\b0 \f20 \fs19 damages,}{\
b0 \f20 \fs19 compensations}{\b0 \f20 \fs19 and}{\b0 \f20 \fs19 all }
\fi1186 {\b0 \f20 \fs19 other}{\b0 \f20 \fs19 matters}{\b0 \f20 \fs19 that}{\
b0 \f20 \fs19 the}{\b0 \f20 \fs19 court}{\b0 \f20 \fs19 thinks}{\b0 \f20 \fs1
9 fit. }
\cf0 \fi476 {\b0 \f20 \fs21 Additionally,}{\b0 \f20 \fs21 s.}{\b0 \f20 \fs21 1
0}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 the}{\b0 \f20 \fs21 Insurance}{\b0 \f20
\fs21 Act}{\b0 \f20 \fs21 of}{\b0 \f20 \fs21 B.C.}{\b0 \f20 \fs21 contains}{
\b0 \f20 \fs21 a}{\b0 \f20 \fs21 relief}{\b0 \f20 \fs21 against}{\b0 \f20 \fs
21 forfeiture}{\b0 \f20 \fs21 provision. }
\cf0 \fi1186 {\b0 \f20 \fs19 10}{\b0 \f20 \fs19 If}{\b0 \f20 \fs19 there}{\b0
\f20 \fs19 has}{\b0 \f20 \fs19 been}{\b0 \f20 \fs19 imperfect}{\b0 \f20 \fs19
compliance}{\b0 \f20 \fs19 with}{\b0 \f20 \fs19 a}{\b0 \f20 \fs19 statutory
}{\b0 \f20 \fs19 condition}{\b0 \f20 \fs19 as}{\b0 \f20 \fs19 to}{\b0 \f20 \f
s19 the}{\b0 \f20 \fs19 proof }
\fi1186 {\b0 \f20 \fs19 of}{\b0 \f20 \fs19 loss}{\b0 \f20 \fs19 to}{\b0 \f20
\fs19 be}{\b0 \f20 \fs19 given}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 the}{\b0 \
f20 \fs19 insured}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 other}{\b0 \f20 \fs19 m
atter}{\b0 \f20 \fs19 or}{\b0 \f20 \fs19 thing}{\b0 \f20 \fs19 required}{\b0
\f20 \fs19 to}{\b0 \f20 \fs19 be}{\b0 \f20 \fs19 done}{\b0 \f20 \fs19 or }
\fi1186 {\b0 \f20 \fs19 omitted}{\b0 \f20 \fs19 by}{\b0 \f20 \fs19 the}{\b0 \
f20 \fs19 insured}{\b0 \f20 \fs19 with}{\b0 \f20 \fs19 respect}{\b0 \f20 \fs1
9 to}{\b0 \f20 \fs19 the}{\b0 \f20 \fs19 loss,}{\b0 \f20 \fs19 and}{\b0 \f20
\fs19 a}{\b0 \f20 \fs19 consequent}{\b0 \f20 \fs19 forfeiture}{\b0 \f20 \fs1
9 or }
\fi1186 {\b0 \f20 \fs19 avoidance}{\b0 \f20 \fs19 of}{\b0 \f20 \fs19 the}{\b0
\f20 \fs19 insurance}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 whole}{\b0 \f20 \fs1
9 or}{\b0 \f20 \fs19 in}{\b0 \f20 \fs19 part,}{\b0 \f20 \fs19 or}{\b0 \f20 \
fs19 if}{\b0 \f20 \fs19 there}{\b0 \f20 \fs19 has}{\b0 \f20 \fs19 been}{\b0
\f20 \fs19 a}{\b0 \f20 \fs19 termination}{\b0 \f20 \fs19 of }
\fi1186 {\b0 \f20 \fs19 the}{\b0 \f20 \fs19 policy}{\b0 \f20 \fs19 by}{\b0 \f
20 \fs19 a}{\b0 \f20 \fs19 notice}{\b0 \f20 \fs19 that}{\b0 \f20 \fs19 was}{
\b0 \f20 \fs19 not}{\b0 \f20 \fs19 received}{\b0 \f20 \fs19 by}{\b0 \f20 \fs1
9 the}{\b0 \f20 \fs19 insured}{\b0 \f20 \fs19 owing}{\b0 \f20 \fs19 to}{\b0
\f20 \fs19 the}{\b0 \f20 \fs19 insured's }\par
}

ffd8ffe000104a46494600010100000100010000ffdb004300010101010101010101010101010101
01010101010101010101010101010101010101010101010101010101010101010101010101010101
010101010101010101ffdb0043010101010101010101010101010101010101010101010101010101
0101010101010101010101010101010101010101010101010101010101010101010101010101ffc0
0011080318026403012200021101031101ffc4001f00000105010101010101000000000000000001
02030405060708090a0bffc400b5100002010303020403050504040000017d010203000411051221
31410613516107227114328191a1082342b1c11552d1f02433627282090a161718191a2526272829
2a3435363738393a434445464748494a535455565758595a636465666768696a737475767778797a
0101010101010101010000000000000102030405060708090a0bffc400b511000201020404030407
05040400010277000102031104052131061241510761711322328108144291a1b1c109233352f015
6272d10a162434e125f11718191a262728292a35363738393a434445464748494a53545556575859
5a636465666768696a737475767778797a82838485868788898a92939495969798999aa2a3a4a5a6
800a28a2800a28a2800a28a2803fffd9
}
cf0 29 \par
}
}
19 \cf0 absence from the address to which the notice was addressed, and the cour
t deems it
i911 inequitable that the insurance should be forfeited or avoided on that groun
d or
i911 terminated, the court may, on terms it deems just, relieve against the forf
eiture or
i911 avoidance or, if the application for relief is made within 90 days of the d
ate of the
i911 mailing of the notice of termination, against the termination.
0 \fi201 {\fs21 The}{\fs21 validity}{\fs21 and}{\fs21 applicability}{\fs21 o
f}{\fs21 these}{\fs21 provisions}{\fs21 must}{\fs21 be}{\fs21 considered}{\
fs21 in}{\fs21 light}{\fs21 of}{\fs21 the}{\fs21 decision}{\fs21 of }
i201 {\fs21 the}{\fs21 Supreme}{\fs21 Court}{\fs21 of}{\fs21 Canada}{\fs21
in}{\fs21 Ordon}{\fs21 v}{\fs21 Grail.}{\fs21 However,}{\fs21 if}{\fs21 su
ch}{\fs21 provisions}{\fs21 are}{\fs21 found}{\fs21 to}{\fs21 not}{\fs21 b
e }
i201 {\fs21 constitutionally}{\fs21 applicable,}{\fs21 the}{\fs21 Ordon}{\fs2
1 v}{\fs21 Grail}{\fs21 analysis}{\fs21 might}{\fs21 well}{\fs21 lead}{\fs
21 a}{\fs21 court}{\fs21 to}{\fs21 amend}{\fs21 Canadian }
i201 {\fs21 maritime}{\fs21 law}{\fs21 to}{\fs21 incorporate}{\fs21 the}{\fs
21 principles}{\fs21 contained}{\fs21 in}{\fs21 these}{\fs21 provisions.}{\
fs21 In}{\fs21 either}{\fs21 event,}{\fs21 the}{\fs21 court }
i201 {\fs21 will}{\fs21 look}{\fs21 at}{\fs21 the}{\fs21 entire}{\fs21 circ
umstances}{\fs21 when}{\fs21 considering}{\fs21 whether}{\fs21 to}{\fs21 gr
ant}{\fs21 relief}{\fs21 against}{\fs21 forfeiture. }

i201 {\fs21 An}{\fs21 extremely}{\fs21 important}{\fs21 consideration}{\fs21
is}{\fs21 whether}{\fs21 the}{\fs21 insurer}{\fs21 has}{\fs21 been}{\fs21
prejudiced}{\fs21 by}{\fs21 the}{\fs21 failure}{\fs21 to }
i201 {\fs21 give}{\fs21 notice. }
0 {\b\i \f10 \fs25 13.2}{\b\i \f10 \fs25 Third}{\b\i \f10 \fs25 Party}{\b\i \f
10 \fs25 Rights}{\b\i \f10 \fs25 Against}{\b\i \f10 \fs25 Insurers }
0 \fi201 {\fs21 Many}{\fs21 provincial}{\fs21 statutes}{\fs21 contain}{\fs21
a}{\fs21 provision}{\fs21 giving}{\fs21 injured}{\fs21 persons}{\fs21 a}{\
fs21 right}{\fs21 of}{\fs21 direct}{\fs21 action}{\fs21 against }
i201 {\fs21 the}{\fs21 insurer}{\fs21 of}{\fs21 the}{\fs21 defendant.}{\fs21
Section}{\fs21 24}{\fs21 of}{\fs21 the}{\fs21 B.C.}{\fs21 Insurance}{\fs2
1 Act}{\fs21 is}{\fs21 typical: }
0 \fi911 24 (1) If a judgement has been granted against a person in respect of a
liability
i911 against which the person is insured and the judgment has not been satisfied
, the
i911 judgment creditor may recover by action against the insurer the lesser of
i911 (a) the unpaid amount of the judgment, and
i911 (b) the amount that the insurer would have been liable under the policy to
pay to the
i911 insured had the insured satisfied the judgment.
i911 (2) The claim of a judgment creditor against an insurer under subsection (1
) is
i911 subject to the same equities as would apply in favour of the insurer had th
e judgment
i911 been satisfied by the insured.
i911 (3) This section does not apply in the case of a contract of automobile ins
urance.
0 \fi201 {\fs21 Because}{\fs21 of}{\fs21 the}{\fs21 constitutional}{\fs21 is
sues}{\fs21 regarding}{\fs21 the}{\fs21 applicability}{\fs21 of}{\fs21 prov
incial}{\fs21 statutes}{\fs21 to}{\fs21 matters }
i201 {\fs21 governed}{\fs21 by}{\fs21 Canadian}{\fs21 maritime}{\fs21 law}{\
fs21 there}{\fs21 is}{\fs21 an}{\fs21 issue}{\fs21 as}{\fs21 to}{\fs21 wh
ether}{\fs21 these}{\fs21 statutes}{\fs21 can}{\fs21 apply}{\fs21 to }
i201 {\fs21 marine}{\fs21 insurance. }
0 \fi201 {\fs21 Many}{\fs21 marine}{\fs21 insurance}{\fs21 contracts}{\fs21
contain}{\fs21 a}{\fs21 provision}{\fs21 that}{\fs21 makes}{\fs21 the}{\fs2
1 obligation}{\fs21 to}{\fs21 indemnify}{\fs21 the }
i201 {\fs21 assured}{\fs21 conditional}{\fs21 on}{\fs21 the}{\fs21 assured}{
\fs21 having}{\fs21 paid}{\fs21 the}{\fs21 claim}{\fs21 against}{\fs21 it.

}{\fs21 This}{\fs21 is}{\fs21 done}{\fs21 using}{\fs21 words}{\fs21 such }
i201 {\fs21 as}{\fs21 "shall}{\fs21 become}{\fs21 liable}{\fs21 to}{\fs21 p
ay}{\fs21 and}{\fs21 shall}{\fs21 have}{\fs21 paid...".}{\fs21 These}{\fs21
clauses}{\fs21 are}{\fs21 called}{\fs21 "pay}{\fs21 to}{\fs21 be}{\fs21
paid". }
i201 {\fs21 The}{\fs21 effect}{\fs21 of}{\fs21 such}{\fs21 clauses}{\fs21 i
s}{\fs21 that}{\fs21 if}{\fs21 the}{\fs21 assured}{\fs21 has}{\fs21 not}{\
fs21 actually}{\fs21 paid}{\fs21 the}{\fs21 injured}{\fs21 party,}{\fs21 b
ecause}{\fs21 of }
i201 {\fs21 bankruptcy}{\fs21 or}{\fs21 some}{\fs21 other}{\fs21 reason,}{\f
s21 the}{\fs21 insurer}{\fs21 is}{\fs21 under}{\fs21 no}{\fs21 obligation}
{\fs21 to}{\fs21 indemnify}{\fs21 and}{\fs21 the}{\fs21 injured }
i201 {\fs21 party}{\fs21 cannot}{\fs21 recover}{\fs21 direct}{\fs21 against}
{\fs21 the}{\fs21 insurer.}{\fs21 (Conohan}{\fs21 v}{\fs21 Cooperators}{\fs
21 2002}{\fs21 FCA}{\fs21 60) }\par
}
}

Marine Insurance Unit 5

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Marine Insurance Unit 5

Uploaded by

Copyright:

Available Formats

{\rtf \ansi\ansicpg1252\deff0\viewkind1\margt750\margb620

{\fonttbl{\f11\fswiss\fcharset0 Arial Narrow;}{\f10\fswiss\fcharset0 Arial;}{\f1

\par}{\phpg\posx1196\pvpg\posy1170\absw10263\absh11698 \sl-277 \par\b \f20 \fs21

{\*\shppict {\pict\jpegblip\picw612 \pich792

\cf0 \fi282 {\b0 12.3}{\b0 Double}{\b0 Insurance}{\b0 s.86}{\b0 MIA.........

\par}{\phpg\posx1500\pvpg\posy3528\absw9983\absh9739 \sl-300 \par\f20 \fs21 \cf0

0 \fs21 determined}{\f20 \fs21 by}{\f20 \fs21 reference}{\f20 \fs21 to}{\f20

i1193 {\f20 \fs19 or }

\par}{\phpg\posx1136\pvpg\posy1170\absw2115\absh1255 \sl-285 \par\b\i \f20 \fs21

the insurance contract.

{\phpg\posx1702\pvpg\posy2358\absw9922\absh1132 \f20 \fs21 \cf0 \f20 \fs21 \cf0

fi485 specified. (s. 41 MIA)

\par}{\phpg\posx1500\pvpg\posy2314\absw10174\absh11010 \sl-273 \f20 \fs21 \cf0 \

\par}{\phpg\posx1500\pvpg\posy1756\absw10138\absh11311 \sl-273 \f20 \fs21 \cf0 \

\par}{\phpg\posx1225\pvpg\posy5126\absw9630\absh8504 \sl-298 \par\b \f10 \fs29 \

{\b0 \f20 \fs19 question}{\b0 \f20 \fs19 of }

1 the}{\fs21 insurer}{\fs21 to}{\fs21 avoid}{\fs21 the}{\fs21 contract. }

0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21

0 \fi1054 {\f0\fs21 \bullet }{\f20 \fs21

fi1186 insurable interest.

1 sea}{\fs21 water}{\fs21 into}{\fs21 a}{\fs21 vessel}{\fs21 in }

\par}{\phpg\posx1782\pvpg\posy1756\absw9966\absh11505 \sl-273 \f20 \fs21 \cf0 \f

e to the MIA. Arrests

f0 \fi911 {\fs19 (2)}{\fs19 Without}{\fs19 limiting}{\fs19 the}{\fs19 genera

\par}{\phpg\posx1500\pvpg\posy2362\absw10168\absh10225 \sl-300 \par\f20 \fs21 \c

\par}{\phpg\posx1500\pvpg\posy2362\absw10270\absh9999 \sl-250 \f20 \fs21 \cf0 \f

s21 \cf0 www.AdmiraltyLaw.com \par

\par}{\phpg\posx1225\pvpg\posy1758\absw10361\absh10841 \sl-274 \b\i \f10 \fs25 \

i0 \f20 \fs19 39,}{\b0\i0 \f20 \fs19 "warranty"}{\b0\i0 \f20 \fs19 means}{\b0

egality, neutrality and

}{\fs19 as}{\fs19 the}{\fs19 insured}{\fs19 has}{\fs19 control,}{\fs19 the

{\*\shppict {\pict\jpegblip\picw612 \pich792

fi344 {\fs21 The}{\fs21 implied}{\fs21 warranty}{\fs21 of}{\fs21 seaworthine

fi344 {\fs21 There}{\fs21 is}{\fs21 no}{\fs21 implied}{\fs21 warranty}{\fs21

}}\par}{\phpg\posx1136\pvpg\posy1170\absw4952\absh1182 \b\i \f20 \fs21 \cf0 \b\i

\fi707 {\b0 subsequent}{\b0 law. }

9 such}{\b0 \f20 \fs19 measures}{\b0 \f20 \fs19 as }

An acceptance of an abandonment may be either express or implied from the

matter}{\b0 specified}{\b0 by}{\b0 the }

\par}{\phpg\posx1500\pvpg\posy1756\absw10160\absh10839 \sl-274 \f20 \fs21 \cf0 \

\par}{\phpg\posx1500\pvpg\posy1756\absw10160\absh10839 \sl-273 \f20 \fs21 \cf0 \

s21 \cf0 www.AdmiraltyLaw.com \par

\par}{\phpg\posx1225\pvpg\posy9786\absw10312\absh4298 \sl-274 \b \f10 \fs29 \cf0

{\*\shppict {\pict\jpegblip\picw612 \pich792

ant}{\fs21 relief}{\fs21 against}{\fs21 forfeiture. }

\fs21 having}{\fs21 paid}{\fs21 the}{\fs21 claim}{\fs21 against}{\fs21 it.

You might also like