Voyage policies. the insured in the whole subject-matter of the valuation (n). Therefore, in the case of a valued policy on freight, the elements of which the valuation was made up will be looked into with a view to ascertaining whether the freight so valued was the full freight, or the freight after deducting certain advances made to the master against freight by the charterer's agents. But this will be done only in cases where such a question becomes material for the purpose of ascertaining whether the shipowner was interested in the whole of the subject-matter of the insurance, and whether the loss has been to any extent satisfied under another policy of insurance, effected on the advances against freight (0). If the policy limits the risk by local termini, that is, specifies the terminus a quo and the terminus ad quem (the places where it is to commence and end), it is termed a voyage Time policies. policy. If the policy merely limits the risk by certain fixed periods, as from 1st January, 1879, to 1st July, 1879, it is termed a time policy. Policies specifying both the time the risk is to run and also the voyage by its local termini are termed mixed policies (p). Mixed policies. A policy made for any period exceeding twelve months is void (9). CASES. 1. A valued policy was effected for 6,0007. on the ship H. The H. was during her voyage run into and sunk by the U., and the underwriters paid the owners of the II. the 6,0007. as for a total loss. Subsequently the sum of 5,000l. was awarded in the Admiralty Court against the owners of the U. The real value of the H. was 9,000l., and there was no other insurance on her. Held, that the 5,000l. belonged entirely to the underwriters; for that as between the underwriters and the insured, the value of the H. was to be deemed to be for all purposes 6,000l. (r). (n) Williams v. The North China (p) Gambles v. Ocean Mar. Ins. Co., 1 Ex. D. 141 (C. A); see 2. By a valued policy an insurance was effected on goods valued therein at 5,0007., at and from London to Pernambuco. The ship was run away with to the West Indies, where the cargo was disposed of by a person whom the insured put on board as a supercargo. The underwriters signed an adjustment, on invoices and bills of lading being produced by the insured, representing that goods above the value of 5,000l. had been shipped. Subsequently the invoices were proved fictitious, and the bills of lading to have been interpolated after the master had signed them. The goods actually shipped were only worth 1,4007. Held, that the underwriters were not liable to pay even the 1,4007., but that the policy was entirely vitiated by the fraud (s). 3. A ship insured "at and from the port of P. to Newcastle-onTyne, and for fifteen days whilst there after arrival," arrived safely at Newcastle on the 4th of December, and on the 13th completed the discharge of her inward cargo. Having, under a charter to load in the river Tyne a cargo of coals for delivery at Gibraltar, received on board two keels of the same as a stiffening, the ship was moved on the 15th December to a loading place on the Tyne, within the port of Newcastle, there to complete her loading. Whilst moored there, she was, on the 16th, injured in a storm. The stamp on the policy was sufficient to cover both a voyage and a time policy. The policy did not contain the usual twenty-four hours' clause. Held, that the policy must be construed as a voyage policy with a time policy engrafted upon it, and that though the voyage was terminated, and the inward cargo discharged, the underwriters were liable (t). § 134. a policy. Every contract of maritime insurance must be set forth Essential in a policy; if it is not, it will be invalid. The policy must contents of specify the risk, the names of the subscribers or underwriters, and the sums insured; otherwise it will be null and void (u). From this it follows that no action can be maintained on a slip (x). Besides specifying the sums insured, a sum sufficient to (s) Haigh v. De la Cour, 3 Camp. 319. (t) Gambles v. The Ocean Mar. Ins. Co., 1 Ex. D. 141 (C. A.). (u) 30 & 31 Vict. c. 23, s. 7; In N. re The Arthur Av. Ass., L. R., 10 (x) Fisher v. The Liverpool Mar. cover the aggregate amount insured is generally inserted in figures on the margin of the policy. The amount of the premium is usually mentioned in the policy; though it is not now essential to do so (y). If the name or names of one or more of the persons interested in the insurance, or of the consignors or consignees, or of the agent in Great Britain who effected the policy, or of the person who gave the order to the agent to effect the insurance, be not inserted in it, the policy will be void (≈). Thus, policies in blank are void. Any party interested in the property insured, at any time during the pendency of the risk, may by subsequent ratification take advantage of the policy to protect his interest, unless the party who effected the policy intended that the insurance should not embrace the interest of the party in question (a). The year for the purposes of insurance is as a general rule divided into two periods of time, all risks commencing to run within one period being termed winter risks, and all commencing to run within the other period being termed summer risks. For example, in the West India trade risks which commence between the 12th January and the 1st August are termed summer risks; and those commencing between the 1st August and the 12th January, winter risks. CASE. The plaintiffs instructed P. to insure for them steel rails, and P. prepared a slip, which was initialed by E. and Co. on behalf of a Liverpool insurance company, for which they were the London agents. According to the course of business followed by the company, P. sent a copy of the slip to E. & Co., who at once forwarded it to the company at Liverpool. P. paid to E. & Co. the premium due on the policy, and the amount due for stamp duty. (y) 30 & 31 Vict. c. 23, s. 7, and Sched. E. () 28 Geo. 3, c. 56; Wolff v. Horncastle, 1 B. & P. 316; Bell v. Janson, 1 M. & S. 201; Hagedorn v. Oliverson, 2 M. & S. 485. (a) Grant v. Hill, 4 Taunt. 380; Irving v. Richardson, 2 B. & Ad. 193; Arnould, part i. chap. iii. p. 111. The steel rails were subsequently totally lost by the perils intended to be insured against. The insurance company then refused to execute any stamped policy. Held, that no action would lie, no stamped policy having been executed; the ratio decidendi being that the initialing the slip and forwarding the copy slip to the insurance company were parts of one contract; and that no further contract could be implied to execute a stamped policy within a reasonable time after the slip was forwarded (b). § 135. of interest The nature of the interest of the person insured in the Accurate subject-matter of the insurance need not be expressed (c). thing description of Therefore, if a mortgagee insure the ship and not his insured; not specific interest in it, he can nevertheless recover to the therein. extent of his interest (d). So a person having several interests in a cargo insured, e. g., as partner in part, as consignee of the whole, and as having a lien on the whole for advances, can protect all his interests by one policy, without expressing therein the number and nature of his interest (e). Similarly the interest of carriers in the goods entrusted to them will be covered by an insurance "on goods" (f). The thing insured, however, must be accurately described in the policy (g). For instance, an insurance on goods or merchandise will not cover profits or commissions on their sale (h). Neither will it cover advances on bottomry or respondentia, in the absence of any custom to the contrary (i). If the policy be on "goods," only goods which are embarked for purposes of trade and which entail ordinary risk (b) Fisher v. The Liverpool Mar. Ins. Co., L. R., 9 Q. B. 418 (S. C.). (c) Crowley v. Cohen, 3 B. & Ad. 478; see "Cases" (1) at end of this; Glover v. Black, 3 Burr. 1394. (d) Irving v. Richardson, 1 Moo. & Rob. 153; 2 B. & Ad. 193. (e) Carruthers v. Shedden, 6 Taunt. 14. (f) Crowley v. Cohen, 3 B. & Ad. 478; see "Cases" (1) at end of this §. (g) Glover v. Black, 3 Burr. 1394. (h) Stock v. Inglis, 9 Q. B. D. 708; 52 L. J., Q. B. 30. (i) Glover v. Black, 3 Burr. 1394; Gregory v. Christie, 3 Doug. 419. Declaration of interest. will be included. Therefore, the ship's stores or goods lashed on deck will not be; except, of course, goods which by custom are usually stowed on deck (i). A policy on "freight" will include the benefit a shipowner expects to derive from carrying his own goods in his own ship (). But freight will not be covered by a policy on goods (1). A policy on "freight" will not include passage money, unless the circumstances of the case require such a construction of the term (m). A policy on "furniture" or "outfit" will include provisions and stores necessary for the crew during the voyage; but not provisions for the passengers, or provisions in excess of the quantity required for the crew (n). However, in the case of whaling cruises, the casks, harpoons, and other fishing stores on board the ships will not be covered by the term "furniture" or "outfit," though they will be covered by an insurance on " merchandise" or "goods" (o). An insurance on piece goods will not cover hats (p). An insurance on "bills of exchange" will not include instruments invalid as such (q). A policy is sometimes effected on goods "to be thereafter declared or valued, by ship or ships." This declaration of interest can only be made in accordance with the express terms of the policy, and must in no way be repugnant thereto (r). The declaration does not require the (n) Brough v. Whitmore, 4 T. R. 206. (i) Ross v. Thwaite, 1 Park, 26; (k) Flint v. Flemyng, 1 B. & Ad. (1) Baillie v. Moudigliani, 1 Park, 90. (m) Denoon v. Home and Colonial Ass. Co., L. R., 7 C. P. 341. (0) The Dundee, 1 Marshall, Ins. 239; Gale v. Laurie, 5 B. & Cr. 156, 164; Hill v. Patten, 8 East, 373. (p) Hunter v. Prinsep, 1 Marshall, Ins. 323. (q) Palmer v. Pratt, 2 Bing. 185. (r) Entwistle v. Ellis, 2 H. & N. 549; see "Cases" (3) at end of this §. |