Types Of Policies - Law of Insurance
Types Of Policies
Voyage
Policy:
Where the contract is to insure
the subject-matter “at and from” or from one place to another or others, the
policy is called a voyage policy.
Time
Policy:
Where the contract is to insure
the subject-matter for a definite period of time, the policy is called a time
policy.
Valued
Policy:
A valued policy is a policy which
specifies the agreed value of the subject-matter insured.
Unvalued
Policy:
An unvalued policy is a policy
which does not specify the value of the matter insured, but subject to the
limit of the sum insured, leaves the insurable value to be subsequently
ascertained (Sec. 30).
Floating
Policy:
A floating policy is a policy
which describes the insurance in general terms, and leaves the name or names of
the ship or ships and other particulars to be defined by subsequent
declaration.
Wager Or
Honour Policy:
It is a policy in which the
assured has no insurable interest or the insurer or underwriter is willing to
dispense with the proof of interest.
Insurabele
Interest:
The person who effects an insurance,
or issues instructions for effecting it, must have an insurable interest in the
subject-matter. The assured must have insurable interest at the
time of the loss, though he may not have been interested when the insurance was
actually effected.
Insurable Value:
Insurable value is the amount of
the valuation of the insurable interest for the purpose of insurance.
Disclosure And
Representation:
The assured must disclose to the
insurer every material circumstance which is known to him, and he is deemed to
know everything which he ought to know in the ordinary course of business.
Warranties:
A warranty, according to sec. 35
of the Act, is an undertaking by the assured that some condition shall be
fulfilled, or that a certain thing shall be or shall not be done, or whereby he
confirms or negatives the existence of a particular state of facts. A warranty
may be express or implied. An express warranty is a condition which is set
forth in the policy or attached thereto; and an implied warranty is an
essential condition implied by law, though not written in the policy.
Sea-Worthiness:
The ship must be sea-worthy at
the commencement of the voyage, or if the voyage is divisible into distinct
stages, at the commencement of each stage.
Legality:
So far as the assured can control
the matter, the adventure shall be carried out in a lawful manner.
The Voyage:
The subject-matter may be insured
by a voyage policy “from a port” or “at and from” a port.
Perils-
Perils
are the risks which the underwriter agrees to take upon himself, and are inserted in the
policy. Perils of the sea are all perils, losses, misfortunes of a marine character or a character
incident to a ship as such. The
purpose of the policy is to secure an indemnity against accidents which may
happen, not against events which must happen.
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