Article 44p. 44

COMMERCIAL LAWS NEGOTIABLE INSTRUMENTS, CORPORATION, INSURANCE, TRANSPORTATION, BANKING

SECTION 111. A person insured by a contract of marine

insurance is presumed to have knowledge, at the time of

insuring, of a prior loss, if the information might possibly

have reached him in the usual mode of transmission and

at the usual rate of communication.

SECTION 112. A concealment in a marine insurance, in

respect to any of the following matters, does not vitiate

the entire contract, but merely exonerates the insurer

from a loss resulting from the risk concealed:

(a) The national character of the insured;

(b) The liability of the thing insured to capture and

detention;

(c) The liability to seizure from breach of foreign laws

of trade;

(d) The want of necessary documents; and

(e) The use of false and simulated papers.

SUB-TITLE 1-D Representation

SECTION 113. If a representation by a person insured

by a contract of marine insurance, is intentionally false in

any material respect, or in respect of any fact on which

the character and nature of the risk depends, the insurer

may rescind the entire contract.

SECTION 114. The eventual falsity of a representation

as to expectation does not, in the absence of fraud, avoid

a contract of marine insurance.

SUB-TITLE 1-E Implied Warranties

SECTION 115. In every marine insurance upon a ship or

freight, or freightage, or upon any thing which is the

subject of marine insurance, a warranty is implied that

the ship is seaworthy.

SECTION 116. A ship is seaworthy when reasonably fit

to perform the service and to encounter the ordinary

perils of the voyage contemplated by the parties to the

policy.

SECTION 117. An implied warranty of seaworthiness is

complied with if the ship be seaworthy at the time of the

commencement of the risk, except in the following cases:

(a) When the insurance is made for a specified length

of time, the implied warranty is not complied with unless

the ship be seaworthy at the commencement of every

voyage it undertakes during that time;

(b) When the insurance is upon the cargo which, by

the terms of the policy, description of the voyage, or

established custom of the trade, is to be transhipped at

an

intermediate

port,

the

implied

warranty

is

not

complied with unless each vessel upon which the cargo is

shipped,

or

transhipped,

be

seaworthy

at

the

commencement of each particular voyage.

SECTION 118. A warranty of seaworthiness extends not

only to the condition of the structure of the ship itself, but

requires that it be properly laden, and provided with a

competent master, a sufficient number of competent

officers and seamen, and the requisite appurtenances

and equipment, such as ballasts, cables and anchors,

cordage and sails, food, water, fuel and lights, and other

necessary

or

proper stores and implements for the

voyage.

SECTION 119. Where different portions of the voyage

contemplated by a policy differ in respect to the things

requisite to make the ship seaworthy therefor, a warranty

of

seaworthiness

is

complied

with

if,

at

the

commencement of each portion, the ship is seaworthy

with reference to that portion.

SECTION 120. When the ship becomes unseaworthy

during the voyage to which an insurance relates, an

unreasonable delay in repairing the defect exonerates the

insurer on ship or shipowner's interest from liability from

any loss arising therefrom.

SECTION 121. A ship which is seaworthy for the

purpose of an insurance upon the ship may, nevertheless,

by reason of being unfitted to receive the cargo, be

unseaworthy for the purpose of insurance upon the

cargo.

SECTION 122. Where the nationality or neutrality of a

ship or cargo is expressly warranted, it is implied that the

ship will carry the requisite documents to show such

nationality or neutrality and that it will not carry any

documents which cast reasonable suspicion thereon.

SUB-TITLE 1-F The Voyage and Deviation

SECTION 123. When the voyage contemplated by a

marine insurance policy is described by the places of

beginning and ending, the voyage insured is one which

conforms to the course of sailing fixed by mercantile

usage between those places.

SECTION 124. If the course of sailing is not fixed by

mercantile

usage,

the

voyage

insured

by

a marine

insurance policy is that way between the places specified,

which to a master of ordinary skill and discretion, would

mean the most natural, direct and advantageous.

SECTION 125. Deviation is a departure from the

course of the voyage insured, mentioned in the last two

(2) sections, or an unreasonable delay in pursuing the

voyage or the commencement of an entirely different

voyage.

SECTION 126. A deviation is proper:

(a)

When

caused

by

circumstances

over

which

neither the master nor the owner of the ship has any

control;

(b) When necessary to comply with a warranty, or to

avoid a peril, whether or not the peril is insured against;

(c) When made in good faith, and upon reasonable

grounds of belief in its necessity to avoid a peril; or

(d) When made in good faith, for the purpose of

saving human life or relieving another vessel in distress.

SECTION 127. Every deviation not specified in the last

section is improper.

SECTION 128. An insurer is not liable for any loss

happening

to

the

thing

insured

subsequent

to

an

improper deviation.

SUB-TITLE 1-G Loss

SECTION 129. A loss may be either total or partial.

SECTION 130. Every loss which is not total is partial.

SECTION 131. A total loss may be either actual or

constructive.

SECTION 132. An actual total loss is caused by:

(a) total destruction of the thing insured;

(b) The irretrievable loss of the thing by sinking, or by

being broken up;

(c)

Any

damage

to

the

thing

which

renders it

valueless to the owner for the purpose for which he held

it; or

(d) Any other event which effectively deprives the

owner of the possession, at the port of destination, of the

thing insured.

SECTION 133. A constructive total loss is one which

gives to a person insured a right to abandon, under

Section 141.

SECTION 134. An actual loss may be presumed from

the continued absence of a ship without being heard of.

The length of time which is sufficient to raise this

presumption depends on the circumstances of the case.

SECTION

135.

When

a

ship

is

prevented, at an

intermediate port, from completing the voyage, by the

perils insured against, the liability of a marine insurer on

the cargo continues after they are thus reshipped.

© Compiled by RGL

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