Marine Insurance Act (S.C. 1993, c. 22)

Act current to 2017-11-20

Marginal note:Types of partial losses

 A partial loss may be a particular average loss, a general average loss, salvage charges or particular charges.

Marginal note:Particular average loss
  •  (1) A particular average loss is a loss of the subject-matter insured that is caused by a peril insured against and is not a general average loss, but does not include particular charges.

  • Marginal note:Particular charges

    (2) Particular charges are expenses incurred by or on behalf of an insured for the purpose of preserving the subject-matter insured from a peril insured against, but do not include a general average loss or salvage charges.

Marginal note:Salvage charges
  •  (1) Salvage charges are charges recoverable under maritime law by a salvor independently of any contract, but do not include expenses incurred for services in the nature of salvage rendered by the insured or the insured’s agent, or any person hired by the insured or the insured’s agent, for the purpose of averting a loss by a peril insured against.

  • Marginal note:Recovery of salvage charges

    (2) Subject to any express provision in the marine policy, salvage charges incurred for the purpose of averting a loss by a peril insured against may be recovered from the insurer as a loss by such a peril.

  • Marginal note:Recovery of other expenses

    (3) The expenses referred to in subsection (1) that are not salvage charges may, when properly incurred, be recovered from the insurer as particular charges or as a general average loss, according to the circumstances under which they were incurred.

Marginal note:General average loss
  •  (1) A general average loss is a loss caused by or directly consequential on a general average act, and includes a general average sacrifice and a general average expenditure.

  • Marginal note:General average act, sacrifice and expenditure

    (2) A general average act is any extraordinary sacrifice or expenditure, known as a general average sacrifice and a general average expenditure, respectively, that is voluntarily and reasonably incurred in time of peril for the purpose of preserving the property from peril in a common adventure.

  • Marginal note:General average contribution

    (3) Subject to the conditions imposed by maritime law, a person who incurs a general average loss is entitled to receive from the other interested persons a rateable contribution, known as a general average contribution, in respect of the loss.

  • Marginal note:Recovery of general average expenditure and general average sacrifice

    (4) Subject to any express provision in the marine policy,

    • (a) an insured who incurs a general average expenditure may recover from the insurer in respect of the proportion of the loss falling on the insured; and

    • (b) an insured who incurs a general average sacrifice may recover from the insurer in respect of the whole loss, without having enforced the insured’s right to contribution from other persons.

  • Marginal note:Recovery of general average contribution

    (5) Subject to any express provision in the marine policy, an insured who has paid, or is liable to pay, a general average contribution in respect of the subject-matter insured may recover the contribution from the insurer.

  • Marginal note:Condition

    (6) Subject to any express provision in the marine policy, an insurer is not liable for a general average loss or a general average contribution, unless the loss was incurred for the purpose of averting, or in connection with the avoidance of, a peril insured against.

  • Marginal note:Where single ownership

    (7) Where any ship, freight and goods, or any two of them, are owned by the same insured, the liability of the insurer for a general average loss or a general average contribution shall be determined as if they were owned by different persons.

Measure of Indemnity

Marginal note:Measure of indemnity

 The measure of indemnity in respect of a loss under a marine policy is the amount that the insured can recover in respect of the loss under the policy, such amount not exceeding

  • (a) in the case of an unvalued policy, the insurable value of the subject-matter insured; or

  • (b) in the case of a valued policy, the value of the subject-matter insured specified by the policy.

Marginal note:Total loss

 Subject to this Act and any express provision in the policy, the measure of indemnity in respect of a total loss of the subject-matter insured is

  • (a) in the case of an unvalued policy, the insurable value of the subject-matter; and

  • (b) in the case of a valued policy, the value of the subject-matter specified by the policy.

Marginal note:Partial loss of ship

 Subject to any express provision in the marine policy, the measure of indemnity in respect of a partial loss of a ship is

  • (a) where the ship is repaired, the reasonable cost of the repairs less the customary deductions, but not exceeding the sum insured in respect of any one casualty;

  • (b) where the ship is partially repaired, the aggregate of the reasonable cost of the repairs, as determined under paragraph (a), and the reasonable depreciation, if any, arising from the unrepaired damage, the aggregate not exceeding the cost, as determined under paragraph (a), of repairing the whole damage; and

  • (c) where the ship is not repaired and is not sold in a damaged state during the risk, the reasonable depreciation arising from the unrepaired damage, but not exceeding the cost, as determined under paragraph (a), of repairing the damage.

Marginal note:Partial loss of freight

 Subject to any express provision in the policy, the measure of indemnity in respect of a partial loss of freight is that proportion of the insurable value of the freight, in the case of an unvalued policy, or the value of the freight specified by the policy, in the case of a valued policy, that the part of the freight lost by the insured bears to the whole freight at the risk of the insured under the policy.

Marginal note:Partial loss of goods or movables
  •  (1) Subject to any express provision in the policy, the measure of indemnity in respect of a partial loss of goods or movables is

    • (a) where part of the goods or movables insured by an unvalued policy is totally lost, the insurable value of the part lost, ascertained as in the case of a total loss;

    • (b) where part of the goods or movables insured by a valued policy is totally lost, that proportion of the value of the goods or movables specified by the policy that the insurable value of the part lost bears to the insurable value of all the goods or movables, ascertained as in the case of an unvalued policy; and

    • (c) where the whole or any part of the goods or movables is delivered damaged at its destination, that proportion of the insurable value of all the goods or movables, in the case of an unvalued policy, or the value of all the goods or movables specified by the policy, in the case of a valued policy, that the difference between the gross value of all the goods or movables in a sound condition at that destination and their gross value in their damaged condition at that destination bears to the gross value of all the goods or movables in a sound condition at that destination.

  • Marginal note:Definition of “gross value”

    (2) For the purposes of paragraph (1)(c), gross value

    • (a) in the case of goods or movables customarily sold in bond, means the bonded price of the goods or movables; and

    • (b) in the case of any other goods or movables, means the wholesale price, or if there is no wholesale price, the estimated value, of the goods or movables, together with any freight, landing charges and duty paid in respect of them.

  • Marginal note:Gross proceeds

    (3) For the purposes of paragraph (1)(c), where the goods or movables are sold at their destination and all charges on the sale are paid by the sellers, their gross value in their damaged condition at that destination is the actual price obtained for them, which price is known as the gross proceeds.

Marginal note:Apportionment of specified value
  •  (1) In determining the measure of indemnity under a valued policy that specifies a single value for different types of goods,

    • (a) the value must be apportioned to those types in proportion to their respective insurable values, as determined under this Act; and

    • (b) the value of any part of any type of the goods is that proportion of the value of all the goods of that type that the insurable value of that part bears to the insurable value of all the goods of that type, as determined under this Act.

  • Marginal note:Idem

    (2) Where the insurable value of goods cannot be determined for the purposes of subsection (1) because the prime cost of a type of goods is not ascertainable, the value specified by the valued policy may be apportioned to the different types of goods in proportion to their respective net arrived sound values.

 
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