Conclusion and Ratification of Contracts
Marginal note:When contract is deemed to be concluded
23 A contract is deemed to be concluded when the proposal of the insured is accepted by the insurer, whether the marine policy is then issued or not, and for the purpose of establishing when the proposal is accepted, the slip or covering note or other customary memorandum of the contract may be referred to.
24 A contract effected in good faith by a person on behalf of another person may be ratified by that other person even after the other person becomes aware of a loss.
The Marine Policy
Marginal note:Marine policy required
Marginal note:Issue of marine policy
(2) A marine policy may be executed and issued when the contract is concluded or afterwards.
Marginal note:Contents of marine policy
26 A marine policy must specify
(a) the name of the insured or of a person who effects the insurance on behalf of the insured;
(b) the subject-matter insured;
(c) the perils insured against;
(d) the voyage or period, or both, covered by the insurance;
(e) the sum insured; and
(f) the name of the insurer.
Marginal note:Signature of insurer
(2) Notwithstanding subsection (1), where the insurer is a corporation, the corporate seal is sufficient.
Marginal note:Subscription by two or more insurers
(3) Where a marine policy is subscribed by or on behalf of two or more insurers, each subscription, unless the contrary is expressed, constitutes a distinct contract with the insured.
Marginal note:Specification of subject-matter
Marginal note:Specification in general terms
(2) A marine policy that specifies the subject-matter insured in general terms shall be construed to apply to the interest intended by the insured to be covered.
(3) Any usage regulating the specification of the subject-matter insured shall be taken into consideration in applying this section.
Marginal note:Voyage and time policies
Marginal note:Voyage policy
(2) A marine policy is a voyage policy if the contract insures the subject-matter “at and from”, or “from”, one place to another place or other places.
Marginal note:Time policy
(3) A marine policy is a time policy if the contract insures the subject-matter for a definite period.
Marginal note:Combined policies
(4) A marine policy may include a contract insuring the subject-matter as described in subsections (2) and (3).
Marginal note:Valued and unvalued policies
Marginal note:Valued policy
(2) A marine policy is a valued policy if it specifies the agreed value of the subject-matter insured.
Marginal note:Unvalued policy
(3) A marine policy is an unvalued policy if it does not specify the value of the subject-matter insured and, subject to the limit of the sum insured, leaves the value to be determined in accordance with section 19.
Marginal note:Value specified
(4) Subject to this Act and in the absence of fraud, the value specified by a valued policy is, as between the insurer and the insured, conclusive of the insurable value of the subject-matter intended to be insured, regardless of whether any loss is a total loss or a partial loss.
(5) Unless a valued policy otherwise provides, the value specified by the policy is not conclusive for the purpose of determining whether there has been a constructive total loss.
Marginal note:Floating policy
31 (1) A marine policy may be a floating policy, that is to say, a policy that describes the insurance in general terms and leaves the name of the ship and other particulars to be defined by subsequent declarations, either by endorsement on the policy or in any other customary manner.
(2) Unless a floating policy otherwise provides, declarations must be made in the order of dispatch or shipment and must, in the case of goods, include all consignments within the terms of the policy and honestly state the value of the goods.
(3) An omission in a declaration or an erroneous declaration may be rectified even after loss or arrival if the omission or declaration was made in good faith.
(4) Unless a floating policy otherwise provides, where a declaration of value is not made until after notice of loss or arrival, the policy shall be treated as an unvalued policy with respect to the subject-matter of that declaration.
Marginal note:Definition of “warranty”
Marginal note:Types of warranty
(2) A warranty may be an express warranty or an implied warranty.
Marginal note:Express warranties
Marginal note:Inclusion in policy
(2) An express warranty must be included in, or written on, the marine policy or be contained in a document incorporated by reference into the policy.
Marginal note:Exclusion of implied warranty
(3) An express warranty does not exclude an implied warranty, unless they are inconsistent.
Marginal note:Warranty of legality
34 There is an implied warranty in every marine policy that the marine adventure insured is lawful and, in so far as the insured has control, will be carried out in a lawful manner.
Marginal note:No implied warranty of nationality
35 There is no implied warranty in any marine policy as to the nationality of a ship or that the nationality of a ship will not be changed during the risk.
Marginal note:Warranty of neutrality
(a) that the property will have a neutral character at the commencement of the risk and that, in so far as the insured has control, that character will be preserved during the risk; and
(b) where the property is a ship, that, in so far as the insured has control, the papers necessary to establish the neutrality of the ship will be carried on the ship and will not be falsified or suppressed and no simulated papers will be used.
Marginal note:Breach of condition
(2) If any loss occurs through a breach of the implied condition referred to in paragraph (1)(b), the insurer may avoid the contract.
Marginal note:Warranty of seaworthiness of ship in voyage policy
Marginal note:Warranty of fitness against perils of the port
(2) Where a voyage policy attaches while the ship is in port, there is an implied warranty in the policy that the ship will, at the commencement of the risk, be reasonably fit to encounter the ordinary perils of the port.
Marginal note:Warranty of fitness for each stage of voyage
(3) Where a voyage policy relates to a voyage performed in different stages during which the ship requires different or further preparation or equipment, there is an implied warranty in the policy that, at the commencement of each stage, the ship is seaworthy for the purposes of that stage.
Marginal note:No implied warranty of seaworthiness in time policy
(4) There is no implied warranty in any time policy that the ship will be seaworthy at any stage of the marine adventure, but where, with the privity of the insured, the ship is sent to sea in an unseaworthy state, the insurer is not liable for any loss attributable to unseaworthiness.
Marginal note:When ship deemed seaworthy
(5) A ship is deemed to be seaworthy if it is reasonably fit in all respects to encounter the ordinary perils of the seas of the marine adventure insured.
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