Marine Insurance includes: “(a) Insurance against loss of or damage to: “(1) Vessels, craft, aircraft, ve icles, goods, freig ts, cargoes, merc andise, effects, dis!ursements, "rofits, mone#s, securities, c oses in action, instruments of de!ts, valua!le "a"ers, !ottomr#, and res"ondentia interests and all ot er $inds of "ro"ert# and interests t erein, in res"ect to, a""ertaining to or in connection %it an# and all ris$s or "erils of navigation, transit or trans"ortation, or % ile !eing assem!led, "ac$ed, crated, !aled, com"ressed or similarl# "re"ared for s i"ment or % ile a%aiting s i"ment, or during an# dela#s, storage, trans i"ment, or res i"ment incident t ereto, including %ar ris$s, marine !uilder&s ris$s, and all "ersonal "ro"ert# floater ris$s' “(() )erson or "ro"ert# in connection %it or a""ertaining to a marine, inland marine, transit or trans"ortation insurance, including lia!ilit# for loss of or damage arising out of or in connection %it t e construction, re"air, o"eration, maintenance or use of t e su!*ect matter of suc insurance (!ut not including life insurance or suret# !onds nor insurance against loss !# reason of !odil# in*ur# to an# "erson arising out of o%ners i", maintenance, or use of automo!iles)' “(+) )recious stones, *e%els, *e%elr#, "recious metals, % et er in course of trans"ortation or ot er%ise' and “(,) -ridges, tunnels and ot er instrumentalities of trans"ortation and communication (e.cluding !uildings, t eir furniture and furnis ings, fi.ed contents and su""lies eld in storage)' "iers, % arves, doc$s and sli"s, and ot er aids to navigation and trans"ortation, including dr# doc$s and marine rail%a#s, dams and a""urtenant facilities for t e control of %ater%a#s. “(!) Marine protection and indemnity insurance , meaning insurance against, or against legal lia!ilit# of t e insured for loss, damage, or e."ense incident to o%ners i", o"eration, c artering, maintenance, use, re"air, or construction of an# vessel, craft or instrumentalit# in use of ocean or inland %ater%a#s, including lia!ilit# of t e insured for "ersonal in*ur#, illness or deat or for loss of or damage to t e "ro"ert# of anot er "erson. “SUB-TITLE 1-B “INSURABLE INTEREST “SEC. 10(. / e o%ner of a s i" as in all cases an insura!le interest in it, even % en it as !een c artered !# one % o covenants to "a# im its value in case of loss: Provided, / at in t is case t e insurer s all !e lia!le for onl# t at "art of t e loss % ic t e insured cannot recover from t e c arterer. “SEC. 10+. / e insura!le interest of t e o%ner of t e s i" #"ot ecated !# !ottomr# is onl# t e e.cess of its value over t e amount secured !#

!ottomr#. “SEC. 10,. 0reig tage, in t e sense of a "olic# of marine insurance, signifies all t e !enefits derived !# t e o%ner, eit er from t e c artering of t e s i" or its em"lo#ment for t e carriage of is o%n goods or t ose of ot ers. “SEC. 101. / e o%ner of a s i" as an insura!le interest in e."ected freig tage % ic according to t e ordinar# and "ro!a!le course of t ings e %ould ave earned !ut for t e intervention of a "eril insured against or ot er "eril incident to t e vo#age. “SEC. 102. / e interest mentioned in t e last section e.ists, in case of a c arter "art#, % en t e s i" as !ro$en ground on t e c artered vo#age. If a "rice is to !e "aid for t e carriage of goods it e.ists % en t e# are actuall# on !oard, or t ere is some contract for "utting t em on !oard, and !ot s i" and goods are read# for t e s"ecified vo#age. “SEC. 103. 4ne % o as an interest in t e t ing from % ic "rofits are e."ected to "roceed as an insura!le interest in t e "rofits. “SEC. 105. / e c arterer of a s i" as an insura!le interest in it, to t e e.tent t at e is lia!le to !e damnified !# its loss. “SUB-TITLE 1-C “CONCEALMENT “SEC. 106. In marine insurance, eac "art# is !ound to communicate, in addition to % at is re7uired !# Section (5, all t e information % ic e "ossesses, material to t e ris$, e.ce"t suc as is mentioned in Section +0, and to state t e e.act and % ole trut in relation to all matters t at e re"resents, or u"on in7uir# discloses or assumes to disclose. “SEC. 110. In marine insurance, information of t e !elief or e."ectation of a t ird "erson, in reference to a material fact, is material. “SEC. 111. 8 "erson insured !# a contract of marine insurance is "resumed to ave $no%ledge, at t e time of insuring, of a "rior loss, if t e information mig t "ossi!l# ave reac ed im in t e usual mode of transmission and at t e usual rate of communication. “SEC. 11(. 8 concealment in a marine insurance, in res"ect to an# of t e follo%ing matters, does not vitiate t e entire contract, !ut merel# e.onerates t e insurer from a loss resulting from t e ris$ concealed: “(a) / e national c aracter of t e insured' “(!) / e lia!ilit# of t e t ing insured to ca"ture and detention' “(c) / e lia!ilit# to sei9ure from !reac of foreign la%s of trade' “(d) / e %ant of necessar# documents' and “(e) / e use of false and simulated "a"ers. “SUB-TITLE 1-D “REPRESENTATION

fuel and lig ts. “SUB-TITLE 1-F “THE VOYAGE AND DEVIATION “SEC. 11+. “SEC.ed !# mercantile usage !et%een t ose "laces. 112. !e sea%ort # at t e commencement of eac "articular vo#age.ed !# mercantile usage. %ould mean t e most natural. 111. : en t e vo#age contem"lated !# a marine insurance "olic# is descri!ed !# t e "laces of !eginning and ending. or esta!lis ed custom of t e trade. nevert eless. or trans i""ed. suc as !allasts. “SEC.. 1((. “SEC. : ere different "ortions of t e vo#age contem"lated !# a "olic# differ in res"ect to t e t ings re7uisite to ma$e t e s i" sea%ort # t erefor. Ever# deviation not s"ecified in t e last section is im"ro"er. 8 deviation is "ro"er: “(a) : en caused !# circumstances over % ic neit er t e master nor t e o%ner of t e s i" as an# control' “(!) : en necessar# to com"l# %it a %arrant#. and u"on reasona!le grounds of !elief in its necessit# to avoid a "eril' or “(d) : en made in good fait . direct and advantageous.tends not onl# to t e condition of t e structure of t e s i" itself. 1(2. “SEC.. . “SEC. or !# !eing !ro$en u"' “(c) 8n# damage to t e t ing % ic renders it valueless to t e o%ner for t e "ur"ose for % ic e eld it' or “(d) 8n# ot er event % ic effectivel# de"rives t e o%ner of t e . In ever# marine insurance u"on a s i" or freig t. “SUB-TITLE 1-E “IMPLIED WARRANTIES “SEC. 1(0. “SEC. If t e course of sailing is not fi. / e eventual falsit# of a re"resentation as to e. 113. 8 loss ma# !e eit er total or "artial. “SEC. 1(. or in res"ect of an# fact on % ic t e c aracter and nature of t e ris$ de"ends. 8n im"lied %arrant# of sea%ort iness is com"lied %it if t e s i" !e sea%ort # at t e time of t e commencement of t e ris$. !# reason of !eing unfitted to receive t e cargo. “SEC. or an unreasona!le dela# in "ursuing t e vo#age or t e commencement of an entirel# different vo#age. 116. “SUB-TITLE 1-G “LOSS “SEC. 8 s i" % ic is sea%ort # for t e "ur"ose of an insurance u"on t e s i" ma#. “SEC. a %arrant# of sea%ort iness is com"lied %it if. Ever# loss % ic is not total is "artial. is to !e trans i""ed at an intermediate "ort. t e insurer ma# rescind t e entire contract. e. “SEC. “SEC. 1+1. and ot er necessar# or "ro"er stores and im"lements for t e vo#age."ressl# %arranted. 1+0. and t e re7uisite a""urtenances and e7ui"ment. ca!les and anc ors. or to avoid a "eril. “SEC. : ere t e nationalit# or neutralit# of a s i" or cargo is e. 8n actual total loss is caused !#: “(a) 8 total destruction of t e t ing insured' “(!) / e irretrieva!le loss of t e t ing !# sin$ing. % ic to a master of ordinar# s$ill and discretion. “SEC. %ater. 1(+. a %arrant# is im"lied t at t e s i" is sea%ort #. t e vo#age insured is one % ic conforms to t e course of sailing fi. in t e a!sence of fraud. an unreasona!le dela# in re"airing t e defect e. mentioned in t e last t%o (() sections. !ut re7uires t at it !e "ro"erl# laden. 1(1. t e im"lied %arrant# is not com"lied %it unless t e s i" !e sea%ort # at t e commencement of ever# vo#age it underta$es during t at time' “(!) : en t e insurance is u"on t e cargo % ic . cordage and sails. or freig tage. 8 total loss ma# !e eit er actual or constructive. 1(3. !# t e terms of t e "olic#. 11. for t e "ur"ose of saving uman life or relieving anot er vessel in distress. 8 s i" is sea%ort # % en reasona!l# fit to "erform t e service and to encounter t e ordinar# "erils of t e vo#age contem"lated !# t e "arties to t e "olic#.eviation is a de"arture from t e course of t e vo#age insured. “SEC. descri"tion of t e vo#age. 1(1."ectation does not. t e im"lied %arrant# is not com"lied %it unless eac vessel u"on % ic t e cargo is s i""ed. t e s i" is sea%ort # %it reference to t at "ortion. it is im"lied t at t e s i" %ill carr# t e re7uisite documents to s o% suc nationalit# or neutralit# and t at it %ill not carr# an# documents % ic cast reasona!le sus"icion t ereon. at t e commencement of eac "ortion. or u"on an# t ing % ic is t e su!*ect of marine insurance. food. “SEC. t e vo#age insured !# a marine insurance "olic# is t at %a# !et%een t e "laces s"ecified. : en t e s i" !ecomes unsea%ort # during t e vo#age to % ic an insurance relates.onerates t e insurer on s i" or s i"o%ner&s interest from lia!ilit# from an# loss arising t erefrom. 8n insurer is not lia!le for an# loss a""ening to t e t ing insured su!se7uent to an im"ro"er deviation. is intentionall# false in an# material res"ect. avoid a contract of marine insurance.ce"t in t e follo%ing cases: “(a) : en t e insurance is made for a s"ecified lengt of time. and "rovided %it a com"etent master. a sufficient num!er of com"etent officers and seamen. “SEC. 115. 1(6.“SEC. % et er or not t e "eril is insured against' “(c) : en made in good fait . If a re"resentation !# a "erson insured !# a contract of marine insurance. !e unsea%ort # for t e "ur"ose of insurance u"on t e cargo. 1+(. 1(5. 8 %arrant# of sea%ort iness e.

“SEC. “SEC. : ere t e information u"on % ic an a!andonment as !een made "roves incorrect. acts done in good fait !# t ose % o %ere agents of t e insured in res"ect to t e t ing insured. If a marine insurer "a#s for a loss as if it %ere an actual total loss. % ic ma# !e done orall#. or in %riting: Provided. a marine insurer is not lia!le for an# "articular average loss not de"riving t e insured of t e "ossession. res i"ment.1. and recover for a total loss t ereof. or class of t ings."licit. “SEC. or t e t ing insured %as so far restored % en t e a!andonment %as made t at t ere %as t en in fact no total loss. %it out incurring t e li$e e. “SEC. 8n a!andonment must !e made %it in a reasona!le time after recei"t of relia!le information of t e loss.. % en t e cause of t e loss is a "eril insured against: “(a) If more t an t ree>fourt s (?) t ereof in value is actuall# lost. 8n a!andonment is e7uivalent to a transfer !# t e insured of is interest to t e insurer. and for is !enefit. / e lengt of time % ic is sufficient to raise t is "resum"tion de"ends on t e circumstances of t e case. 8!andonment is made !# giving notice t ereof to t e insurer. “SEC. : ere it as !een agreed t at an insurance u"on a "articular t ing. s all !e free from "articular average. even t oug it !ecomes entirel# %ort less' !ut suc insurer is lia!le for is "ro"ortion of all general average loss assessed u"on t e t ing insured. In addition to t e lia!ilit# mentioned in t e last section. su!se7uent to t e loss. t e insured is entitled to a reasona!le time to ma$e in7uir#.5. or ot er%ise se"aratel# insured. 8!andonment.. 8n a!andonment must !e neit er "artial nor conditional. / e acce"tance of an a!andonment ma# !e eit er e. 1+1. 1. 1. of t e insura!le value. is conclusive u"on t e "arties. : en a s i" is "revented. a marine insurer is !ound for damages.1. e declares t e relin7uis ment to t e insurer of is interest in t e t ing insured. t e rig ts of t e insured are not "re*udiced !# t e fact t at t e insurer refuses to acce"t t e a!andonment. or %ould ave to !e e. 1. and t e contem"lated vo#age cannot !e la%full# "erformed %it out incurring eit er an e."ense or ris$ mentioned in t e "receding su!"aragra" . 1+3. 8n actual loss ma# !e "resumed from t e continued a!sence of a s i" %it out !eing eard of. “SUB-TITLE 1-H “ABANDONMENT “SEC. 8 constructive total loss is one % ic gives to a "erson insured a rig t to a!andon.1. “SEC. “SEC. “SEC. “SEC.. . after a constructive total loss. “SEC. “SEC. “SEC. 8n a!andonment can !e sustained onl# u"on t e cause s"ecified in t e notice t ereof. and must s"ecif# t e "articular cause of t e a!andonment. 111. from com"leting t e vo#age. “<ot ing in t is section s all "revent an insurer from re7uiring an additional "remium if t e a9ard !e increased !# t is e. in marine insurance. 8 "erson insured !# a contract of marine insurance ma# a!andon t e t ing insured. of t e t ing insured. nor anot er s i" "rocured !# t e master. is t e act of t e insured !# % ic . “SEC."ended to recover it from t e "eril' “(!) If it is in*ured to suc an e.cess of t e insured value or. if t ere !e none. e. 1. 11(. ="on an actual total loss. 8n insurance confined in terms to an actual loss does not cover a constructive total loss."ossession. and all ot er e.0. to for%ard t e cargo. or class of t ings. %it in a reasona!le time and %it reasona!le diligence. 1+."ense to t e insured of more t an t ree>fourt s (?) t e value of t e t ing a!andoned or a ris$ % ic a "rudent man %ould not ta$e under t e circumstances' or “(d) If t e t ing insured.2.tent as to reduce its value more t an t ree> fourt s (?)' “(c) If t e t ing insured is a s i".tra freig tage. t e a!andonment !ecomes ineffectual. 1. “SEC."ress or im"lied from t e conduct of t e insurer. a %ritten notice of suc a!andonment s all !e su!mitted %it in seven (3) da#s from suc oral notice. at t e "ort of destination."enses of disc arging. e. “<ot ing in t is or in t e "receding section s all render a marine insurer lia!le for an# amount in e. at t e "ort of destination. !eing cargo or freig tage. “SEC. and admits t e loss and t e sufficienc# of t e a!andonment. are at t e ris$ of t e insurer. a "erson insured is entitled to "a#ment %it out notice of a!andonment. “SEC. 1+2. of t e entire t ing insured. under Section 1. !ut need state onl# enoug to s o% t at t ere is "ro!a!le cause t erefor. or an# "articular "ortion t ereof se"aratel# valued !# t e "olic#. “SEC.(. 1."ress or im"lied. 11+. : ere notice of a!andonment is "ro"erl# given.tension of lia!ilit#."enses incurred in saving cargo res i""ed "ursuant to t e last section. “SEC. at an intermediate "ort. 1+5. 8 notice of a!andonment must !e e. ="on an a!andonment. at t e "ort of destination. !ut % ere t e information is of a dou!tful c aracter. !# t e "erils insured against. -ut freig tage cannot in an# case !e a!andoned unless t e s i" is also a!andoned.3. / e acce"tance of an a!andonment. and t e vo#age cannot !e "erformed. e is entitled to % atever ma# remain of t e t ing insured. !ut covers an# loss. 1. 1. storage. %it all t e c ances of recover# and indemnit#.+. or its "roceeds or salvage. “SEC. 1. 1++. 1. “SEC. of t e % ole of suc t ing. t e lia!ilit# of a marine insurer on t e cargo continues after t e# are t us res i""ed. 1+6. as if t ere ad !een a formal a!andonment. % ic necessaril# results in de"riving t e insured of t e "ossession.6. / e mere silence of t e insurer for an unreasona!le lengt of time after notice s all !e construed as an acce"tance. / at if t e notice !e done orall#. u" to t e amount insured. 110. % et er e. and need not !e accom"anied %it "roof of interest or of loss.

if a "art onl# of t e su!*ect is e. if t at after%ards occurs. of t e t ing so damaged. “SEC.es t eir amount."enses attendant u"on a loss % ic forces t e s i" into "ort to !e re"aired' and % ere it is sti"ulated in t e "olic# t at t e insured s all la!or for t e recover# of t e "ro"ert#. e is lia!le as u"on an actual total loss. 113. : ere "rofits are se"aratel# insured in a contract of marine insurance. 122. “SEC. and %it out t e $no%ledge of t e "erson actuall# "rocuring t e insurance. aving t e rig t and o""ortunit# to enforce contri!ution from ot ers. e ma# s o% t e real value. 4n an acce"ted a!andonment of a s i". if t e insured as some interest at ris$. -ut a valuation fraudulent in fact."ortation."osed to ris$. deducting from t e amount an# "roceeds of t e t ing insured % ic ma# ave come to t e ands of t e insured.ce"t t at anc ors must !e "aid in full. / at t e lia!ilit# of t e insurer s all !e limited to t e "ro"ortion of contri!ution attac ing to is "olic# value % ere t is is less t an t e contri!uting value of t e t ing insured. 112. 123."enses incurred on t e %a# or on arrival' “(c) / e value of freig tage is t e gross freig tage. In estimating a loss under an o"en "olic# of marine insurance t e follo%ing rules are to !e o!served: “(a) / e value of a s i" is its value at t e !eginning of t e ris$. 12+. “SEC. or to e.."ected to arise. including all articles or c arges % ic add to its "ermanent value or % ic are necessar# to "re"are it for t e vo#age insured' “(!) / e value of t e cargo is its actual cost to t e insured. its mar$et value at t e time and "lace of lading. t e insured is entitled to recover. “SEC. or to an# dra%!ac$ on its e. 116. 125. “SEC. in case of loss. su!rogating im to is o%n rig t to contri!ution.clusive of "rimage. e. 120. : en a "erson insured !# a contract of marine insurance as a demand against ot ers for contri!ution. %it out reference to t e cost of earning it' and “(d) / e cost of insurance is in eac case to !e added to t e value t us estimated. If cargo insured against "artial loss arrives at t e "ort of destination in a damaged condition. re7uired to !e made !# im to%ards a general average loss called for !# a "eril insured against: Provided. “SEC.. freig tage earned "revious to t e loss !elongs to t e insurer of said freig tage' !ut freig tage su!se7uentl# earned !elongs to t e insurer of t e s i". 8 marine insurer is lia!le for all t e e. t roug a contri!ution in res"ect to t e t ing insured. 11. 8n a!andonment once made and acce"ted is irrevoca!le.ercise of t at rig t."ense. “SEC. % en laden on !oard. t e loss of t e insured is deemed to !e t e same "ro"ortion of t e value % ic t e mar$et "rice at t at "ort. 115. In t e case of a "artial loss of s i" or its e7ui"ment. 111. entitles t e insurer to rescind t e contract.“SEC. !eing in addition to a total loss. onl# for suc "ro"ortion of t e amount insured !# im as t e loss !ears to t e value of t e % ole interest of t e insured in t e "ro"ert# insured. -ut no suc claim can !e made u"on t e insurer after t e se"aration of t e interests lia!le to contri!ution. or % ere t e cost cannot !e ascertained. t e insurer is lia!le for t e e. In case of a valued "olic# of marine insurance on freig tage or cargo. 8 marine insurer is lia!le for a loss falling u"on t e insured. If a "erson insured omits to a!andon. e. “SUB-TITLE 1-I “MEASURE OF INDEMNITY “SEC. 12. a loss of t em is conclusivel# "resumed from a loss of t e "ro"ert# out of % ic t e# are e. in eit er case. : en "rofits are valued and insured !# a contract of marine insurance. or to t e fluctuation of t e mar$et at t e "ort of destination. If an insurer refuses to acce"t a valid a!andonment. 121. adding t e c arges incurred in "urc asing and "lacing it on !oard. 121. “SEC. !ears to t e mar$et "rice it %ould ave !roug t if sound. e ma# claim t e % ole loss from t e insurer. 8 valuation in a "olic# of marine insurance is conclusive !et%een t e "arties t ereto in t e ad*ustment of eit er a "artial or total loss. . !efore its insurance. “SEC. t e old materials are to !e a""lied to%ards "a#ment for t e ne%. “SEC."ense incurred t ere!#. a "ro"ortion of suc "rofits e7uivalent to t e "ro"ortion % ic t e value of t e "ro"ert# lost !ears to t e value of t e % ole. !ut %it out reference to an# loss incurred in raising mone# for its "urc ase. =nless ot er%ise sti"ulated in t e "olic#. and t e valuation fi. suc e. 8 marine insurer is lia!le u"on a "artial loss. “SEC.ce"t t at % en a t ing as !een #"ot ecated !# !ottomr# or res"ondentia. 12(. a marine insurer is lia!le for onl# t%o>t irds ((@+) of t e remaining cost of re"airs after suc deduction. “SEC. e ma# nevert eless recover is actual loss. “SEC. t e valuation a""lies onl# in "ro"ortion to suc "art. nor % en t e insured. as neglected or %aived t e e. and t ere is no fraud on is "art' e. unless t e ground u"on % ic it %as made "roves to !e unfounded.