Article 45p. 45

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

Nothing in this section shall prevent an insurer from

requiring

an

additional

premium

if

the

hazard

be

increased by this extension of liability.

SECTION 136. In addition to the liability mentioned in

the last section, a marine insurer is bound for damages,

expenses

of

discharging,

storage,

reshipment,

extra

freightage, and all other expenses incurred in saving

cargo reshipped pursuant to the last section, up to the

amount insured.

Nothing in this or in the preceding section shall

render a marine insurer liable for any amount in excess of

the insured value or, if there be none, of the insurable

value.

SECTION 137. Upon an actual total loss, a person

insured

is

entitled

to

payment

without

notice

of

abandonment.

SECTION 138. Where it has been agreed that an

insurance upon a particular thing, or class of things, shall

be free from particular average, a marine insurer is not

liable for any particular average loss not depriving the

insured of the possession, at the port of destination, of

the whole of such thing, or class of things, even though it

becomes entirely worthless; but such insurer is liable for

his proportion of all general average loss assessed upon

the thing insured.

SECTION 139. An insurance confined in terms to an

actual loss does not cover a constructive total loss, but

covers any loss, which necessarily results in depriving the

insured of the possession, at the port of destination, of

the entire thing insured.

SUB-TITLE 1-H Abandonment

SECTION 140. Abandonment, in marine insurance, is

the act of the insured by which, after a constructive total

loss, he declares the relinquishment to the insurer of his

interest in the thing insured.

SECTION 141. A person insured by a contract of marine

insurance

may

abandon

the

thing

insured,

or

any

particular portion thereof separately valued by the policy,

or otherwise separately insured, and recover for a total

loss thereof, when the cause of the loss is a peril insured

against:

(a) If more than three-fourths (3/4) thereof in value is

actually lost, or would have to be expended to recover it

from the peril;

(b) If it is injured to such an extent as to reduce its

value more than three-fourths (3/4);

(c)

If

the

thing

insured

is

a

ship,

and

the

contemplated

voyage

cannot

be

lawfully

performed

without incurring either an expense to the insured of

more than three-fourths (3/4) the value of the thing

abandoned or a risk which a prudent man would not take

under the circumstances; or

(d) If the thing insured, being cargo or freightage,

and the voyage cannot be performed, nor another ship

procured by the master, within a reasonable time and

with reasonable diligence, to forward the cargo, without

incurring the like expense or risk mentioned in the

preceding subparagraph. But freightage cannot in any

case be abandoned unless the ship is also abandoned.

SECTION 142. An abandonment must be neither

partial nor conditional.

SECTION 143. An abandonment must be made within

a reasonable time after receipt of reliable information of

the loss, but where the information is of a doubtful

character, the insured is entitled to a reasonable time to

make inquiry.

SECTION 144. Where the information upon which an

abandonment has been made proves incorrect, or the

thing insured was so far restored when the abandonment

was made that there was then in fact no total loss, the

abandonment becomes ineffectual.

SECTION 145. Abandonment is made by giving notice

thereof to the insurer, which may be done orally, or in

writing: Provided, That if the notice be done orally, a

written notice of such abandonment shall be submitted

within seven (7) days from such oral notice.

SECTION 146. A notice of abandonment must be

explicit, and must specify the particular cause of the

abandonment, but need state only enough to show that

there

is

probable

cause therefor, and need not be

accompanied with proof of interest or of loss.

SECTION 147. An abandonment can be sustained only

upon the cause specified in the notice thereof.

SECTION 148. An abandonment is equivalent to a

transfer by the insured of his interest to the insurer, with

all the chances of recovery and indemnity.

SECTION 149. If a marine insurer pays for a loss as if it

were an actual total loss, he is entitled to whatever may

remain of the thing insured, or its proceeds or salvage, as

if there had been a formal abandonment.

SECTION 150. Upon an abandonment, acts done in

good faith by those who were agents of the insured in

respect to the thing insured, subsequent to the loss, are

at the risk of the insurer, and for his benefit.

SECTION

151.

Where

notice

of

abandonment

is

properly

given,

the

rights

of

the

insured

are

not

prejudiced by the fact that the insurer refuses to accept

the abandonment.

SECTION 152. The acceptance of an abandonment

may be either express or implied from the conduct of the

insurer.

The

mere

silence

of

the

insurer

for

an

unreasonable

length

of

time

after

notice

shall

be

construed as an acceptance.

SECTION 153. The acceptance of an abandonment,

whether

express

or implied, is conclusive upon the

parties, and admits the loss and the sufficiency of the

abandonment.

SECTION

154. An abandonment once made and

accepted is irrevocable, unless the ground upon which it

was made proves to be unfounded.

SECTION 155. On an accepted abandonment of a ship,

freightage earned previous to the loss belongs to the

insurer of said freightage; but freightage subsequently

earned belongs to the insurer of the ship.

SECTION 156. If an insurer refuses to accept a valid

abandonment, he is liable as upon an actual total loss,

deducting from the amount any proceeds of the thing

insured which may have come to the hands of the

insured.

SECTION 157. If a person insured omits to abandon, he

may nevertheless recover his actual loss.

SUB-TITLE 1-I Measure of Indemnity

SECTION

158.

A valuation in a policy of marine

insurance is conclusive between the parties thereto in the

adjustment of either a partial or total loss, if the insured

has some interest at risk, and there is no fraud on his part;

except that when a thing has been hypothecated by

bottomry

or

respondentia,

before its insurance, and

without the knowledge of the person actually procuring

the

insurance,

he

may

show the real value. But a

valuation fraudulent in fact, entitles the insurer to rescind

the contract.

SECTION 159. A marine insurer is liable upon a partial

loss, only for such proportion of the amount insured by

him as the loss bears to the value of the whole interest of

the insured in the property insured.

SECTION 160. Where profits are separately insured in

a contract of marine insurance, the insured is entitled to

recover, in case of loss, a proportion of such profits

equivalent to the proportion which the value of the

property lost bears to the value of the whole.

© Compiled by RGL

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