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.

• Marginal note:Declarations

  (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.

• Marginal note:Rectification

  (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.

• Marginal note:Idem

  (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”

• 32. (1) In this section and sections 33 to 39, “warranty” means a promissory warranty by which the insured

  • (a) undertakes that some particular thing will or will not be done or that some condition will be fulfilled; or

  • (b) affirms or negates the existence of particular facts.

• Marginal note:Types of warranty

  (2) A warranty may be an express warranty or an implied warranty.

Marginal note:Express warranties

• 33. (1) An express warranty may be in any form of words from which the intention to warrant may be inferred.

• 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

• 36. (1) Where in any marine policy insurable property is expressly warranted to be neutral, there is an implied condition in the policy

  • (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.