THE MARINE INSURANCE ACT, 1963
[Act, No. 11 of 1963]
[18th April, 1963]
An Act to codify the law relating to marine insurance.
BE it enacted by Parliament hi the Fourteenth Year of the Republic of India as follows:--
Section 1. Short title and commencement
(1) This Act may be called the Marine Insurance Act, 1963.
(2) It shall come into force on such date1as the Central Government may, by notification in the Official Gazette, appoint.
|1. The date appointed is 1-8-1963.|
Section 2. Definitions
In this Act, unless the context otherwise requires,--
(a) "contract of marine insurance" means a contract of marine insurance as defined by section 3;
(b) "freight" includes the profit derivable by a ship-owner from the employment of his ship to carry his own goods or other movables, as well as freight payable by a third party, but does not include passage money;
(c) "insurable property" means any ship, goods or other movables which are exposed to maritime perils;
(d) "marine adventure" includes any adventure where--
(i) any insurable property is exposed to maritime perils;
(ii) the earnings or acquisition of any freight, passage money, commission, profit or other pecuniary benefit, or the security for any advances, loans, or disbursements is endangered by the exposure of insurable property to maritime perils;
(iii) any liability to a third party may be incurred by the owner of or other person interested in or responsible for, insurable property by reason of maritime perils;
(e) "maritime perils" means the perils consequent on, or incidental to, the navigation of the sea, that is to say, perils of the sea, fire, war perils, pirates, rovers, thieves, captures, seizures, restraints and detainments of princes and peoples, jettisons, barratry and any other perils which are either of the like kind or may be designated by the policy;
(f) "movables" means any movable tangible property, other than the ship, and includes money, valuable securities and other documents;
(g) "policy" means a marine policy;
(h) "ship" includes every description of vessel used in navigation; (i) "suit" includes counter-claim and set-off.
Section 3. Marine insurance defined
A contract of marine insurance is an agreement whereby the insurer undertakes to indemnify the assured, in the manner and to the extent thereby agreed, against marine losses, that is to say, the losses incidental to marine adventure.
Section 4. Mixed Sea and Land Risks
(1) A contract of marine insurance may, by its express terms, or by usage of trade, be extended so as to protect the assured against losses on inland waters or on any land risk which may be incidental to any sea voyage.
(2) Where a ship in course of building or the launch of a ship, or any adventure analogous to a marine adventure, is covered by a policy in the form of a marine policy, the provisions of this Act, in so far as applicable, shall apply thereto, but, except as by this section provided, nothing in this Act shall alter or affect any rule of law applicable to any contract of insurance other than a contract of marine insurance as by this Act defined.
Explanation.-- An adventure analogous to a marine adventure' includes an adventure where any ship, goods or other movables are exposed to perils incidental to local or inland transit.
Section 5. Lawful marine adventure
Subject to the provisions of this Act, every lawful marine adventure may be the subject of a contract of marine insurance.
Section 6. Avoidance of wagering contracts
(1) Every contract of marine insurance by way of wagering is void.
(2) A contract of marine insurance is deemed to be a wagering contract--
(a) where the assured has not an insurable interest as defined by this Act, and the contract is entered into with no expectation of acquiring such an interest; or
(b) where the policy is made "interest or no interest", or "without further proof of interest than the policy itself, or "without benefit of salvage to the insurer", or subject to any other like term:
Provided that, where there is no possibility of salvage, a policy may be effected without benefit of salvage to the insurer.
Section 7. Insurable interest defined
(1) Subject to the provisions of this Act, every person has an insurable interest who is interested in a marine adventure.
(2) In particular a person is interested in a marine adventure where he stands in any legal or equitable relation to the adventure or to any insurable property at risk therein, in consequence of which he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss, or by damage thereto, or by the detention thereof, or may incur liability in respect thereof.
Section 8. When interest must attach
(1) The assured must be interested in the subject-matter insured at the time of the loss, though he need not be interested when the insurance is effected :
Provided that, where the subject-matter is insured "lost or not lost", the assured may recover although he may not have acquired his interest until after the loss, unless at the time of effecting the contract of insurance the assured was aware of the loss, and the insurer was not.
(2) Where the assured has no interest at the time of the loss, he cannot acquire interest by any act or election after he is aware of the loss.
Section 9. Defeasible or contingent interest
(1) A defeasible interest is insurable, as also is a contingent interest.
(2) In particular, where the buyer of goods has insured them, he has an insurable interest, notwithstanding that he might, at his election, have rejected the goods, or have treated them as at the seller's risk, by reason of the latter's delay in making delivery or otherwise.
Section 10. Partial interest
A partial interest of any nature is insurable.
Section 11. Reinsurance
(1) The insurer under a contract of marine insurance has an insurable interest in his risk, and may reinsure in respect of it.
(2) Unless the policy otherwise provides, the original assured has no right or interest in respect of such reinsurance.
Section 12. Bottomry
The lender of money on bottomry or respondentia has an insurable interest in respect of the loan.
Section 13. Master's and Seamen's Wages
The master or any member of the crew of a ship has an insurable interest in respect of his wages.
Section 14. Advance freight
In the case of advance freight, the person advancing the freight has an insurable interest, in so far as such freight is not repayable in case of loss.