Here is an example: Or, to quote this Quora answer: Similar answers exist on many other websites. Thus, the Act confirms that, because of the special nature and hazards which are commensurate with the carriage of deck cargo and living animals, they must be specifically insured as such unless there is ‘usage to the contrary’. Section 3 of the Marine Insurance Act 1906 declares that every lawful marine adventure’ may be insured, and the section then goes on to consider what may constitute a ‘marine adventure’: (1) Subject to the provisions of this Act, every lawful marine adventure may be the subject of a contract of marine insurance. However, Viscount Finlay, in his speech, analysed r 17 in depth. But we do not find any such decisions. Goods may be insured under the Institute Cargo Clauses (A), (B) and (C).12 Whereas the ICC (B) and (C) provide cover for enumerated perils, the ICC (A) provides ‘all risks’ cover and, because of this, has the added and important advantage of making the burden of proof placed upon a claimant less rigorous. Subject Matter of Insurance is expert in insurance domain business. The insurers therefore rejected the claim on the policy of insurance made by the plaintiffs. Element: Life Insurance has the elements of protection and investment or both. Before the ships reached Hamburg, hostilities broke out between Germany and Great Britain and both vessels were ordered into British ports. My Lords, these provisions seem to me ample to support the conclusion at which I have arrived, that the Act of 1906 has not altered but has preserved the law upon this point as it stood before 1906, and that law was that, under a policy on goods at and from a port to a port, the venture, and not the goods merely, was the subject matter insured. What constitutes a ‘ship’ is determined by r 15 of the Rules for Construction, which states: The term ‘ship’ includes the hull, materials and outfit, stores and provisions for the officers and crew, and, in the case of vessels engaged in a special trade, the ordinary fittings requisite for the trade, and also, in the case of a steamship, the machinery, boilers, and coals and engine stores, if owned by the assured. service.europaeische.at. In Brough v Whitmore, the insurance was upon the ‘ship’ and the ‘furniture’ of the ship, and it was held that the policy covered provisions for the use of the crew…Here, however, the words used are ‘hull and machinery’, not ‘ship’, and in my opinion, the judgment of the learned judge was right. Any such construction of r 17 would bring it into acute conflict with the law as to insurance of deck cargo as it existed up to 1906, and is not, in my opinion, warranted by the wording of the rule. Click to go to the #1 insurance … In the body of the policy it is stated that the insurance was ‘on motor car’, not stating that the car was to be carried on deck. The rule prescribes that deck cargo and living animals must be insured specifically in the absence of any usage to the contrary. It transpired that, before being loaded into the ocean going ship at Punta Arenas, in southern Chile, the wool had been carried on the decks of local steamers without the insurers being notified. The underwriters defended the action, on the basis that the dunnage mats and separation cloths were not covered by the policy. A vessel employed continuously in the Black Sea grain trade was insured under a policy on ‘ship and furniture’. At present, life insurance enjoys maximum scope because life is the most important property of an individual. tis-gdv.de. The American underwriters then reinsured a portion of the cotton without disclosing the fact that the policy was in fact a policy of reinsurance. Contact IRMI. The ship exposes a number of risks like a cyclone, collision, and arrest by foreign naval power. The insured must own an economic or financial interest whereby he will experience a financial loss if such loss occurs. Such a usage may be fairly described as ‘a usage to the contrary’. When Oxenholme was lost, and the plaintiffs claimed on their insurance, the insurers refused payment, on the basis that the plaintiffs had exceeded the £5,000 warranty when they insured the disbursements. The claimant stands, in relation to the subject matter of insurance, to benefit by its safety or suffer some prejudice by its loss. And, if no property which answers the description in the policy be at risk, the policy will not attach, though the assured may have other property at risk of equal or greater value. Subject Matter of Insurance - Contract Subject matter of insurance is the life, limbs, property, rights or any potential legal liability insured under a policy. When the vessel collided with a pier-head and severely damaged her bow section, where a large number of dunnage mats3 and separation cloths were stowed, the owners of the ship claimed on their policy for the loss of the dunnage mats and separation cloths which had floated away. A marine insurance contract is one in which the insurer promises to indemnify the insured against any loss to the insured subject matter, be it a ship or the cargo, arising out of the perils of the sea, subject to the conditions and the extent of the policy. It appears, however, that the most frequent course is to describe passage money by a distinguishing term, and not merely as freight; and it was proved that, for insurance purposes, there is a distinction between freight and passage money, because the premium for the latter, upon a voyage from Calcutta to Mauritius, is generally less than that for the former; so that, as a matter of business, the not mentioning the subject upon the occasion of the insurance would indicate that the freight was probably intended to refer to merchandise. However, a fire broke out, and many of the goods were destroyed. Subject matter definition: The subject matter of something such as a book, lecture , film, or painting is the thing... | Meaning, pronunciation, translations and examples What is the meaning of the clause " Insurance is a subject matter of solicitation". This is what marks the difference between a wagering agreement and a contract of insurance because every contract of insurance requires for its validity the insurable interest. An insurable interest must exist at the time of the purchase of the insurance. The cargo comprised some 25 tons of redwood, which the master had purchased on behalf of his owner, 122 tons of saltpetre, for which the ship was contracted to carry, and a further 90 tons of light goods, for which there was no written contract of carriage, only a verbal undertaking. The word Hull refers to the body of the ship or vessel. Similarly, in case of life insurance the individual has unlimited financial interest in his own life. Learn more. These are the subject-matter of insurance, but the subject-matter of the contract is money, and money only. Section 60 is as to constructive total loss, and sub-s 2(iii) provides that, in the case of damage to goods, there is a constructive total loss when the cost of repairing the damage and forwarding the goods to their destination would exceed their value on arrival. By the old law before the Marine Insurance Act 1906, and now by r 17 of the Rules for Construction of Policy in Sched I to the Act, in the absence of any usage to the contrary, cargo carried on deck must be insured specifically. This question was raised in Apollinaris Co v Nord Deutsche Insurance Co, below. The court ruled that the term ‘freight’ did not include passage money and, consequently, there was a total loss of the freight insured under the policy. subject matter definition: 1. the things that are being talked or written about, or used as the subject of a piece of art…. This concept, where goods are concerned, that there can be a loss brought about by the loss of the venture itself is not new.15 Under common law, the concept was well established,16 but it was not until the case of British and Foreign Marine Insurance Co Ltd v Samuel Sanday and Co, below, came before the House of Lords that it was confirmed that the doctrine of loss of venture also applied to the Act. Dallas CJ dubitante: [p 61] …The general principle of insurance, that the insured shall, in case of a loss, recover no more than an indemnity, may be controlled by a mercantile usage clearly established to the contrary: and usage, that the loss in an open policy on freight shall be adjusted on the gross, and not on the net amount of the freight, is a legal usage. It follows that the defence of breach of warranty cannot be maintained, and the learned judge was right in so holding. An assignment of the subject-matter of insurance by virtue of an agreement between the assured and the assignee may affect the validity of the policy by reason of the rule that the assured must at the date of the loss posses an insurable interest. When Sandringham arrived off Mauritius, she was wrecked, and the cargo of rice totally lost, together with the freight payable. Life Insurance is different from other insurance in the sense that, here, the subject matter of... General Insurance. The contingency is not a very probable one, but Parliament, if it considered the wording of this rule, may have thought that to provide against any possible usage to the contrary could do no harm and might conceivably be useful. Both are intended for the same purpose—namely, to separate one part of the cargo from another. It was ingeniously argued that ‘hull and machinery’ in the case of a steam vessel means the ship, and that there is authority for saying that the word ‘ship’ covers ‘coal and stores’. Learn more. The cargo-owners warehoused their goods and served notice of abandonment on their insurers. The reason being, that the insurers have not entered into a contract to indemnify the assured for any loss on that other property. Thus, because freight is intangible, in that it is money earned by the employment of the ship, the earning of that freight can only be a risk insured if the insurable property earning that freight is exposed to maritime perils. 4. The subject-matter of insurance is a different thing from the subject-matter of the contract of insurance. (2) In particular, there is a marine adventure where: (a) any ship goods or other movables are exposed to maritime perils. Is r 17 applicable to deck cargoes carried on inland voyages? The question is whether an ordinary Lloyd’s time policy on ship, the ship being engaged in the grain trade, covers separation cloths and dunnage mats. One of the essential ingredients of an Insurance contract is that the insured must have an insurable interest in the subject matter of the contract. dispense with the specific description of deck cargo as such. Article # The insured shall observe all the regulations prescribed by the State with respect to fire prevention, safety, production, operations, any other regulations associated therewith, to maintain the safety of, If the insured fails to fulfill the obligation of notice stipulated in the preceding paragraph, the insurer shall bear no obligation, insured event which occurs due to the increased risk to, the insurer shall obtain partial rights pertaining to, his/her contractual obligation to ensure the safety of, , the insurer has the right to request an, Article # The insurer shall bear the necessary and reasonable expenses incurred by the insurer and the insured from investigating and ascertaining the nature of and the cause for, insured event, and the extent of loss or damage to, increases during the period of the contract, then, accordance with the contract, promptly notify the insurer and the insurer shall have the right to increase the premium or terminate the contract, In accordance with the terms of the contract, the insurer may inspect, concerning its safety conditions and, within a reasonable time, propose reasonable written suggestions to the applicant or the insured to eliminate risks and latent problems undermining the safety of, may be agreed by the applicant and the insurer, and specified in the contract; or it may be assessed based on the actual value of, at the time of the occurrence of the insured event, insured's right of indemnity against the third party up to the amount of indemnity from the date when the amount of indemnity is made, subject matter to which the international application relates under the PCT. Therefore, the cargo-owners could recover under their policy of insurance. Failure to designate the subject matter in the policy with reasonable certainty could be construed as non-disclosure of a material circumstance. In the law of insurance, the insured must have an interest in the subject matter of his or her policy, or such policy will be void and unenforceable since it will be regarded as a form of gambling. Viscount Finlay: [p 53] …The construction of this rule [r 17] has given rise to a great deal of controversy, and it is now necessary that we should endeavour to settle this vexed question of construction. Eligible Portfolio for the post of Subject Matter Expert emphasizes on skills such as – analytical thinking and logical thinking capacity, a thorough knowledge of the work area subject, managerial skills, networking skills, writing skills, and relevant computer competencies. Wager and as such unenforceable in the policy, if an accident which is within the insurance. to... 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