Marginal note:Construction of marine policies

3. Subject to this Act and unless a contrary intention appears, the words and terms set out in the schedule have, when used in a marine policy, the meanings assigned by the schedule.

Marginal note:Rules of Canadian maritime law

4. The rules of Canadian maritime law continue to apply in respect of contracts, except in so far as the rules are inconsistent with this Act.

Marginal note:Application

5. This Act applies in respect of contracts concluded on or after the coming into force of this Act.

Marginal note:Contract of marine insurance

• 6. (1) A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, in the manner and to the extent agreed in the contract, against

  • (a) losses that are incidental to a marine adventure or an adventure analogous to a marine adventure, including losses arising from a land or air peril incidental to such an adventure if they are provided for in the contract or by usage of the trade; or

  • (b) losses that are incidental to the building, repair or launch of a ship.

• Marginal note:Coverage

  (2) Subject to this Act, any lawful marine adventure may be the subject of a contract.

Marginal note:Insurable interest required

• 7. (1) In order to recover under a contract for a loss, the insured must have an insurable interest in the subject-matter insured at the time of the loss, but need not have such an interest when the contract is concluded.

• Marginal note:“Lost or not lost” insurance

  (2) Notwithstanding subsection (1), where the subject-matter is insured “lost or not lost”, the insured may recover in respect of an insurable interest in the subject-matter acquired after a loss unless, at the time the contract was concluded, the insured was aware of the loss and the insurer was not.

• Marginal note:Where no interest

  (3) An insured who has no insurable interest in the subject-matter insured at the time of a loss cannot acquire an insurable interest by any act or election after becoming aware of the loss.

Marginal note:Insurable interest - general principle

• 8. (1) Subject to this Act, a person who has an interest in a marine adventure has an insurable interest.

• Marginal note:Interest in marine adventure

  (2) A person has an interest in a marine adventure if the person has a legal or equitable relation to the adventure, or to any insurable property at risk in the adventure, and may benefit from the safety or due arrival of insurable property, may be prejudiced by its loss, damage or detention or may incur liability in respect of it.