Assignment of Marine Policy
Marginal note:Marine policy assignable
Marginal note:Manner of assignment
(2) A marine policy may be assigned by endorsement on the policy or in any other customary manner.
Marginal note:Effect of assignment
(3) Where a marine policy is assigned so as to transfer the beneficial interest in the policy, the assignee of the policy is entitled to sue on it in the assignee’s name and, in any such action, the defendant is entitled to raise any defence arising out of the contract that the defendant would have been entitled to raise if the action had been brought in the name of the person by or on behalf of whom the policy was effected.
Marginal note:Loss of interest
52 (1) Where an insured transfers or loses an interest in the subject-matter insured and does not, before or at the time of so doing, expressly or impliedly agree to assign the marine policy, no subsequent assignment of the marine policy is operative.
(2) Subsection (1) does not apply in respect of an assignment of a marine policy after a loss.
Loss and Abandonment
Marginal note:Losses covered
53 (1) Subject to this Act and unless a marine policy otherwise provides, an insurer is liable only for a loss that is proximately caused by a peril insured against, including a loss that would not have occurred but for the misconduct or negligence of the master or crew.
Marginal note:Losses specifically excluded
(2) Without limiting the generality of subsection (1), an insurer is not liable for any loss attributable to the wilful misconduct of the insured nor, unless the marine policy otherwise provides, for
(a) in the case of insurance on a ship or goods, any loss proximately caused by delay, including a delay caused by a peril insured against;
(b) ordinary wear and tear, ordinary leakage or breakage or inherent vice or nature of the subject-matter insured;
(c) any loss proximately caused by vermin; or
(d) any loss or damage to machinery not proximately caused by maritime perils.
Marginal note:Total and partial losses
54 A loss may be a total loss or a partial loss.
Marginal note:Types of total loss
Marginal note:Losses covered
(2) Unless a marine policy otherwise provides, insurance against total loss includes both actual total loss and constructive total loss.
Marginal note:Actual total loss
56 (1) A loss is an actual total loss if the subject-matter insured is destroyed or is so damaged as to cease to be a thing of the kind insured or if the insured is irretrievably deprived of the subject-matter.
(2) Where a ship engaged in a marine adventure is missing and no news of the ship is received within a reasonable period, an actual total loss may be presumed.
Marginal note:Constructive total loss
57 (1) Unless a marine policy otherwise provides, a loss is a constructive total loss if the subject-matter insured is reasonably abandoned because the actual total loss of the subject-matter appears unavoidable or the preservation of the subject-matter from actual total loss would entail costs exceeding its value when the costs are incurred.
(2) Without limiting the generality of subsection (1), a loss is a constructive total loss if
(a) in the case of a ship or goods, the insured is deprived of possession of the ship or goods by reason of a peril insured against and either the insured is unlikely to recover the ship or goods or the cost of recovery would exceed the value of the ship or goods when recovered;
(b) in the case of a ship, the ship is so damaged by a peril insured against that the cost of repairing it would exceed the value of the ship when repaired; or
(c) in the case of goods, the goods are so damaged that the cost of repairing and forwarding them to their destination would exceed the value of the goods on arrival.
Marginal note:Cost of repair of ship
(3) For the purposes of paragraph (2)(b), in estimating the cost of repairing a ship, no deduction may be made in respect of general average contributions to the repairs payable by other interested persons, but account is to be taken of the cost of future salvage operations and of any future general average contributions to which the ship would be liable if repaired.
Marginal note:Notice of abandonment
(2) Subject to this section and section 59, an insured who elects to abandon the subject-matter insured to the insurer must give a notice of abandonment to the insurer with reasonable diligence after the insured receives reliable information of the loss.
Marginal note:Time for inquiry
(3) An insured who receives doubtful information of a loss is entitled to a reasonable time to make inquiries before giving a notice of abandonment.
Marginal note:Manner of giving notice
(4) An insured may give a notice of abandonment orally or in writing, or partly orally and partly in writing, and in any terms that indicate the insured’s intention to abandon unconditionally the insured interest in the subject-matter to the insurer.
Marginal note:Failure to give notice
(5) If an insured fails to give a notice of abandonment as required by this section, the constructive total loss may be treated only as a partial loss.
Marginal note:Notice not required
(2) An insurer who has reinsured a risk is not required to give a notice of abandonment to the reinsurer.
Marginal note:Refusal of abandonment
Marginal note:Acceptance of abandonment
(2) An acceptance of an abandonment may be either express or implied from the conduct of the insurer, but the mere silence of an insurer after a notice of abandonment is given does not constitute an acceptance.
Marginal note:Effect of acceptance on insured
(3) On acceptance of an abandonment, the abandonment is irrevocable.
Marginal note:Effect of acceptance on insurer
(4) On acceptance of an abandonment, the insurer
Marginal note:Abandonment of ship
(5) On acceptance of the abandonment of a ship, the insurer is entitled to
Marginal note:Partial loss
(2) Where insured goods reach their destination in specie but cannot be identified by reason of obliteration of marks or otherwise, the loss, if any, is a partial loss.
Marginal note:Recovery for partial loss
(3) Unless a marine policy otherwise provides, an insured who brings an action for a total loss but establishes only a partial loss may recover for a partial loss.
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