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. They shipped the car on deck. Lord Tenterden CJ: [p 48] …If it be a necessary ingredient in the composition of freight, that there should be a money compensation paid by one person to another, the benefit accruing to a shipowner from using his own ship to carry his own goods is not freight. UTMOST GOOD FAITH, DISCLOSURE AND REPRESENTATIONS, Cases and Materials on Marine Insurance Law, Arbitration of International Business Disputes, Brownlie’s Principles of Public International Law, Health and Human Rights in a Changing World, he Handbook of Maritime Economics and Business, Information Doesn't Want to Be Free_ Laws for the Internet Age, International Contractual and Statutory Adjudication, International Maritime Conventions (Volume 3), International Sales Law A Guide to the CISG, Mandatory Reporting Laws and the Identification of Severe Child Abuse and Neglect, Research on Selected China's Legal Issues of E-Business, Serving the Rule of International Maritime Law, Stephen Cretney-Family Law in the Twentieth Century_ A History-Oxford University Press (2003), The Impact of Corruption on International Commercial Contracts, Theoretical and Empirical Insights into Child and Family Poverty, The Oxford History of the Laws of England, The Routledge Companion to Philosophy of Law, Trade Policy between Law Diplomacy and Scholarship. The ship exposes a number of risks like a cyclone, collision, and arrest by foreign naval power. The ship is to be measured with GRT (Gross Register Tonnage) and NRT (Net Register Tonnage). The plaintiff was in the mean time offered Mercedes Benz Reg. The ship exposes a number of risks like a cyclone, collision, and arrest by foreign naval power. Showing page 1. The House of Lords, affirming the decisions of both the lower courts, ruled that there was a total loss of the adventure itself caused by the restraint of princes, a peril insured against. All Rights Reserved by KnowledgeBase. The subject matter of marine insurance covers: I. The word Hull refers to the body of the ship or vessel. The Insurance Regulatory and Development Authority has made it mandatory for insurance companies, agents and brokers to announce clearly in all their communication that insurance is the subject matter of solicitation. It seems clear that, under the ordinary circumstances of that trade, the use of such cloths and mats would be necessary for the proper carriage of the cargo, and that if the ship went to sea without them, she would be unseaworthy. insurance, import the benefit derived from the employment of the ship, then there has been a loss of freight. The subject matter is a ship, cargo or freight. Passage money, the money earned by carrying passengers, must be insured separately and may not be insured as freight. 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. The ‘hull’ of a ship is a well known term. The subject matter of the insurance refers either to the property of the insured and related interests associated therewith, or to the life and the body of the insured, which is the object of the insurance Life Insurance is different from other insurance in the sense that, here, the subject matter of... General Insurance. Because a Google search revealed that many, many websites claim to explain this. 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. So you might ask what is the difference between BA - business and SME in insurance. What is the meaning of the clause " Insurance is a subject matter of solicitation". Hobhouse J: [p 417] …Freight insurance is concerned with the earnings or potential earnings of the vessel, not with the expenses of earning those sums. It does not, however, include stores for passengers. The ppi policies on disbursements did not relate to the hull and machinery policies and, therefore, there was no breach of the warranty. What may be insured as freight and, furthermore, when a policy on freight attaches, was clarified long ago in the old case of Flint v Flemyng, below. Subject Matter Of Insurance In an insurance contract, the subject matter is the form of property, thing or possible liability insured (in which the insured has insurable interest) e.g. Subject matter definition: The subject matter of something such as a book, lecture , film, or painting is the thing... | Meaning, pronunciation, translations and examples I cannot adopt the appellants’ contention that the usage must be a usage not in the carrying trade with regard to such goods, but in the insurance world with reference to the manner in which they are to be described for insurance purposes. If you have any question you can ask below or enter what you are looking for! Contact IRMI. Lord Esher MR: [p 384] …The defendant company have departed from the use of the word ‘ship’, and have used instead of it another term—‘hull and machinery’ – and we have to construe those words. I am satisfied that the words ‘hull and machinery’ cannot be taken as including those things which are covered by the ‘disbursement’ policies. Absence of insurance makes the contract null and void. It is equally possible that management is interested in the organisation’s financial reporting process and asks the practitioner to evaluate its report on internal control processes. But if the term freight, as used in the policy of insurance, import the benefit derived from the employment of the ship, then there has been a loss of freight. Thus, in keeping with s 3 of the Act, the following subject matter are insurable under a marine policy of insurance: The only stipulation made by the Act with respect to the nature of the subject matter insured is that it should be ‘designated with reasonable certainty’ in the marine policy. It is generally described very concisely as being so much ‘on ship’, ‘on goods’, ‘on freight’, ‘on profits on goods’, ‘on advances on coolies’, ‘on emigrant money’, and many other examples might be given. In all other classes of insurance the subject-matter is capable of being assigned. The claimant stands, in relation to the subject matter of insurance, to benefit by its safety or suffer some prejudice by its loss. The ship is a very important subject matter of marine insurance. The subject matter of hull insurance is the vessel or ship. Insurance policies are a safeguard against the uncertainties of life. dispense with the specific description of deck cargo as such. Subject Matter of Insurance is expert in insurance domain business. The interest the claimant has does not need to be an interest recognised in law or in equity. Untuk menentukan insurable interest, dalam kontrak asuransi, yang diasuransikan bukannya bangunan, kapal, mesin atau tanggung jawab hukum pada pihak ketiga, melainkan kepentingan keuangan tertanggung (pecuniary … It then falls upon the insurer to prove that the loss fell within one of the exceptions in the policy for which he is not liable. concept; it is not a profits insurance, but has as its underlying concept that part of the value of a vessel or of a voyage or other adventure as its capacity to earn freights. Has it then been proved that these words have, as between assurer and assured, universally acquired a meaning different from their natural meaning? Failure to designate the subject matter in the policy with reasonable certainty could be construed as non-disclosure of a material circumstance. The Court of Appeal, however, ruled that, although the reinsurers had not been informed that the policy was one of reinsurance, it did not amount to the concealment of a material fact. The subject matter of the insurance is the payment of compensation and the provision of assistance [...] and service in connection [...] with a stay booked at a hotel or other rental arrangement in Europe. Clearly, many other people have had the same question. That the freight insured under an open policy is the gross freight and not the net freight was established in the old case of Palmer v Blackburn (1822) 1 Bing 61, where a vessel was lost on a voyage from the East Indies to London. It is not concerned as such with the fact that the voyage took longer, nor with the fact that the costs of performing it were higher than expected. However, it is emphasised that, whilst the subject matter within the policy must be designated with reasonable certainty, there is no requirement for the assured to indicate the nature and extent of his interest in the policy. The matter was reported to the defendant and registered as claim No. Insurance and Insurable Interest is covered, operating costs and, finally, the insurer' s profit . Property Insurance. 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. 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. The only result in the policy, if an accident which is within the insurance happens, is a payment of money. As the insurers refused to pay the claim, the plaintiff sued the defendants. The ship is to be measured with GRT (Gross Register Tonnage) and NRT (Net Register Tonnage). MC/0092/DIR/13. Insurable interest is essentially a pecuniary interest, i.e., the loss caused by fire happening of the insured risk must be capable of financial valuation. The pirates and the men of war may loot away the goods. The plaintiff owner of Sandringham had the policy on freight altered, but failed to convey to the insurers that only the freight on the rice was to be insured and that the policy did not include the passage money payable by the coolies on arrival at Mauritius. When the American underwriters came to claim on their policy of reinsurance, the reinsurers refused to pay, asserting that they had not been informed that the policy was one of reinsurance. I’ve always wondered why every insurance ad states, “Insurance is the Subject Matter of Solicitation,” and what exactly does this statement mean. Such property is in this Act referred to as ‘insurable property’; (b) the earnin… Blackburn J: [p 40] …A description of the subject matter of insurance is required both from the nature of the contract and from the universal practice of insurers. 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. The subject-matter of insurance may be a house or other premises in a fire policy, or may be a ship or goods in a marine policy. The subject-matter of insurance is a different thing from the subject-matter of the contract of insurance…. This is true that he can conduct an examination in the case of a property being insured for fire risk or of getting a medical examination done in the case of a health policy. Marine insurance – actual vessel or cargo. And, as s 3(2)(b) of the Act affirms, freight is insurable under a policy of marine insurance provided that the freight ‘…is endangered by the exposure of insurable property to maritime perils’. Unlike the ICC (B) and (C), under the ICC (A), the claimant does not have to show how the loss occurred, only that it did occur. The cargo-owners warehoused their goods and served notice of abandonment on their insurers. I think it clear that it does not. Does it cover the coal on board, or the provisions and stores? 4. Element: Marine insurance has only the clement of protection. To secure an insurance policy one must have insurable interest which refers to the "current, legal and financial relationship" between the insured and subject matter of insurance a mare hope of having interest in future is not enough to be considered as insurable interest. I am satisfied that the words ‘hull and machinery’ cannot be taken as including those things which are covered by the ‘disbursement’ policies. tis-gdv.de. Cookies help us deliver our services. The court ruled that, as it was common practice for goods to be stowed on the deck of Rhine steamers and, therefore, as the goods need not be specifically insured, the insurers were liable under the policy. No. Sometimes the value is calculated at the time of loss also. Such a usage may be fairly described as ‘a usage to the contrary’. Insurance is a system by which the losses suffered by a few are spread over many, exposed to similar risks. Least Expensive Alternative Treatment (LEAT): A clause in an insurance policy that indicates that the insurer will only cover the least expensive option for treatment, repair, or … [p 262] …I am by no means satisfied that the rule [referring to r 17] which exempts underwriters from liability for the loss of deck cargo applies to inland voyages by canal or river. In the case of deck cargo there must, in addition to the ordinary description of the goods, be an intimation in the policy that the goods are to be carried on deck, by inserting ‘for carriage on deck’, or other similar words. If there is no insurable interest, an insurance company will not issue a policy. Earl Loreburn: [p 656] …The first question is whether the old rule still prevails, that upon an insurance on goods, substantially in the words of these policies, the frustration of the adventure by an insured peril is a loss recoverable against underwriters, though the goods themselves are safe and sound. In my opinion, the learned judge was quite right in holding that this had not been proved. Indeed, the form of policies on freight was an issue bemoaned by Scott LJ in Kulukundis v Norwich Union Fire Insurance Society [1937] 1 KB 1, CA. Similarly, in case of life insurance the individual has unlimited financial interest in his own life. Unfortunately, the statutory definition of ‘goods’ provided by r 17 of the Rules for Construction has failed to clarify whether containers and packing materials, usually essential to the safe carriage of goods, may be considered as part of those goods and, therefore, covered by the policy of insurance. The main subject matter of an insurance contract is well defined by the common law in quite narrow and precise terms. Learn more. However, Viscount Finlay, in his speech, analysed r 17 in depth. Under this principle of insurance, the insured must have interest in the subject matter of the insurance. Hull Insurance: The goods or cargoes shipped to a foreign country are exposed to the perils of the seas. Excellent presentation skills and extensive knowledge of the scope of practice is mandatory for this post. Provided constructive peer feedback and … The Institute War Clauses (Cargo)—the frustration clause. The reason being, that the insurers have not entered into a contract to indemnify the assured for any loss on that other property. The subject of ‘freight’ can be confusing because, primarily, the payment of freight is concerned with contracts of carriage, not marine insurance. The subject-matter of insurance in the case of personal accident insurance and life insurance is from its nature unassignable. Most of them are constructed of steel and welded and are capable of sailing on the sea in ballast or with cargo. Principal of utmost good faith: Under this insurance contract both the parties should have faith over … Lord Wrenbury: [p 673] …If, then, in marine insurance, a policy on goods means by usage a policy on the safe arrival of goods, that meaning is by s 26 preserved. The concluding words of the paragraph that deck cargo and livestock are not to be insured simply as goods appear to be quite unnecessary, but do not militate against the construction of the paragraph which I disposed to adopt. 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. But in the case now before us, the nature of the interest of the parties assured in the cotton does not in the slightest degree vary the nature of the risk…The subject matter of insurance, viz, the cotton, is fully described, and there is no apparent reason which would make it just to require the nature of the interest to be described. 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. 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. Still, if there were a series of decisions determining that in such a case, or in cases analogous to it, a description was required beyond what would seem to us reasonable, we would be unwilling to disturb the established practice. 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. In the event, the car was carried on deck without the insurers’ knowledge, and when it arrived at Messina, it was found to be damaged beyond repair. When the plaintiff claimed on his policy on freight for the full amount, the insurers contended that their liability only amounted to the net freight—the amount that would have been payable by the cargo interests, less the charges the plaintiffs would have incurred in the event of the safe arrival of the ship (seamen’s wages, pilotage, light dues, tonnage duty and dock dues). 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. subject matter of insurance. …Then, as to the other point, to recover upon a policy on freight, the assured must prove that, but for the intervention of some of the perils insured against, some freight would have been earned, either by showing that some goods were put on board, or there was some contract for doing so…The defendant, therefore, is entitled to a new trial upon that ground, but he must, at all events, have a verdict against him for the amount of the freight on the redwood and saltpetre. However, a fire broke out, and many of the goods were destroyed. When goods are insured, they are insured not only against physical loss or damage, but also for a loss brought about by the loss of the voyage or adventure which has prevented the goods from reaching their destination. The dictionary meaning of solicitation is " Ask For". There are two standard sets of Institute Hulls Clauses which may be employed with, and only with, the current Lloyd’s Marine Policy (MAR 91)4 and the Institute of London Underwriting Companies Marine Policy Form (MAR91).5, (a)   the Institute Time Clauses Hulls, 1/11/95 (ITCH(95));7, (b)   the Institute Voyage Clauses Hulls, 1/11/95 (IVCH(95)).8, All the Institute Clauses are unreservedly subject to English law and practice,9 but it should be noted that the ITCH(95) and the IVCH(95) are less favourable to the assured than the 1983 Clauses.10. ADVERTISEMENTS: There is one exception to the principle of indemnity in marine insurance. A vessel employed continuously in the Black Sea grain trade was insured under a policy on ‘ship and furniture’. Liability insurance refers to an insurance the subject matter of the insurance of which is the insured's liability to indemnify a third party pursuant to laws a material reduction occurred in the insured value of the subject matter of the insurance Such property, right, life, limb, interest or liability must be the subject-matter of insurance. A British firm of corn merchants shipped two consignments of linseed and wheat aboard the British steamships St Andrew and Orthia from Argentina to Hamburg. But we do not find any such decisions. Thus, it is not necessary in the case of reinsurance for the policy to stipulate that it is in fact a policy of reinsurance. In all other classes of insurance the subject-matter is capable of being assigned. However, for the insurer to be liable for a loss of freight, there must be some proof that the freight would have been earned. Learn more. 7 Types of Insurance Life Insurance. subject matter of insurance: translation "金山词霸2003法学大词典": 保险标的物 . The term ‘movables’ is defined by s 90 of the Act thus: ‘Movables’ means any movable tangible property, other than the ship, and includes money, valuable securities, and other documents: That ‘movables’ are insurable under a policy of marine insurance is confirmed by s 3(2)(a) of the Act; the only proviso being that such movables ‘…are exposed to maritime perils’. The only result in the policy, if an accident which is within the insurance happens, is a payment of money. A separately insured item will be an actual total loss when the subject matter of insurance is destroyed or where the Policyholder is irretrievably deprived of the subject matter of insurance.. IRMI offers the most exhaustive resource of definitions and other help to insurance professionals found anywhere. The Court of Appeal, in affirming the decision of the trial judge, ruled in favour of the plaintiff owners. The above case, where only the hull and machinery were insured, should be compared with Hogarth v Walker, below. And, in Ikerigi Compania Naviera SA v Palmer, ‘Wondrous’ [1991] 1 Lloyd’s Rep 400; aff’d [1992] 2 Lloyd’s Rep 566, CA, where a vessel was detained in Iran because of the non-payment of port dues and freight tax, at first instance, Hobhouse J had reason to consider the concept of freight.20. Thus, where freight is concerned, contracts of carriage and contracts of insurance, though separate issues, are closely related. That is, the goods must have either have been placed on board the ship or there be in existence a contract of carriage relating to those goods. The Insurance Regulatory and Development Authority has made it mandatory for insurance companies, agents and brokers to announce clearly in all their communication that insurance is the subject matter of … Subject matter of insurance dalam polis marine : kapal, muatannya atau bisa juga tanggung jawab pemilik kapal atas kecelakaan atau kerugian yang menimpa pihak ketiga. 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. It follows that the defence of breach of warranty cannot be maintained, and the learned judge was right in so holding. It is the same thing to the shipowner whether he receives the benefit of the use of his ship by a money payment from one person who charters the whole ship, who from various persons who put specific quantities of goods on board, or from persons who pay him the value of his own goods at the port of delivery, increased by their carriage in his own ship. judge was quite right in holding that this had not been proved. Insurable Interest: Insurable Interest must be present at the time of effecting the policy but need not be at the time whirl he claims falls clue. Lastly, s 91(2) enacts that the rules of the common law, including the law merchant, save in so far as they are inconsistent with the express provisions of this Act, shall continue to apply to contracts of marine insurance. Subdivision of Hull Insurance. 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. They come from many sources and are not checked. International Risk Management Institute, Inc. 12222 Merit Drive, Suite 1600 Dallas, TX 75251-2266 (972) 960-7693 (800) 827-4242 There are essentially two types of freight which may be earned by a ship with respect to a third party, namely: (a)   ordinary freight, often referred to as ‘bill of lading freight’; and. What is the meaning of these words as to usage which are prefixed to the second part of r 17? The issue of whether the general rule contained in r 17 regarding deck cargoes was inapplicable to all inland voyages was left open. Such a usage as to insurance may, of course, grow up in any trade in which deck carriage of certain articles prevails, and if such a usage in the business of insurance has grown up it will be a usage to the contrary. Lord Tenterden confirmed that: (a) a shipowner was entitled to insure the freight due from a third party who charters the whole ship; (b) a shipowner was entitled to insure the freight payable by a third party who puts specific quantities of goods aboard the ship; and (c) a shipowner was entitled to insure as freight the increase in value of his own goods brought about by them being carried in his own ship. Copyright © 2013. 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.