Marine Insurance Act


Published: 1908-06-08

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Marine Insurance Act
MARINE INSURANCE [CH.349 – 1



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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

MARINE INSURANCE
CHAPTER 349


MARINE INSURANCE

ARRANGEMENT OF SECTIONS

SECTION
1. Short title.

Marine Insurance
2. Marine insurance defined.
3. Mixed sea and land risks.
4. Marine adventure and maritime perils defined.

Insurable Interest
5. Avoidance of wagering or gaming contracts.
6. Insurable interest defined.
7. When interest must attach.
8. Defeasible or contingent interest.
9. Partial interest.
10. Re-insurance.
11. Bottomry.
12. Master’s and seamen’s wages.
13. Advance freight.
14. Charges of insurance.
15. Quantum of interest.
16. Assignment of interest.

Insurable Value
17. Measure of insurable value.

Disclosure and Representations
18. Insurance is uberrimae fidei.
19. Disclosure by assured.
20. Disclosure by agent effecting insurance.
21. Representations pending negotiation of contract.
22. When contract is deemed to be concluded.

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The Policy
23. Contract must be embodied in policy.
24. What policy must specify.
25. Signature of insurer.
26. Voyage and time policies.
27. Designation of subject-matter.
28. Valued policy.
29. Unvalued policy.
30. Floating policy by ship or ships.
31. Construction of terms in policy.
32. Premium to be arranged.

Double Insurance
33. Double insurance.

Warranties, etc.
34. Nature of warranty.
35. When breach of warranty excused.
36. Express warranties.
37. Warranty of neutrality.
38. No implied warranty of nationality.
39. Warranty of good safety.
40. Warranty of seaworthiness of ship.
41. No implied warranty that goods are seaworthy.
42. Warranty of legality.

The Voyage
43. Implied condition as to commencement of risk.
44. Alteration of port of departure.
45. Sailing for different destination.
46. Change of voyage.
47. Deviation.
48. Several ports of discharge.
49. Delay in voyage.
50. Excuses for deviation or delay.

Assignment of Policy
51. When and how policy is assignable.
52. Assured who has no interest cannot assign.

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The Premium
53. When premium payable.
54. Policy effected through broker.
55. Effect of receipt on policy.

Loss and Abandonment
56. Included and excluded losses.
57. Partial and total loss.
58. Actual total loss.
59. Missing ship.
60. Effect of transshipment, etc.
61. Constructive total loss defined.
62. Effect of constructive total loss.
63. Notice of abandonment.
64. Effect of abandonment.

Partial Losses (including Salvage and General Average and Particular
Charges)

65. Particular average loss.
66. Salvage charges.
67. General average loss.

Measure of Indemnity
68. Extent of liability of insurer for loss.
69. Total loss.
70. Partial loss of ship.
71. Partial loss of freight.
72. Partial loss of goods, merchandise, etc.
73. Apportionment of valuation.
74. General average contributions and salvage charges.
75. Liabilities to third parties.
76. General provisions as to measure of indemnity.
77. Particular average warranties.
78. Successive losses.
79. Suing and labouring clause.

Rights of Insurer on Payment
80. Right of subrogation.
81. Right of contribution.
82. Effect of under-insurance.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

83. Enforcement of return.
84. Return by agreement.

Return of Premium
83. Enforcement of return.
84. Return by agreement.
85. Return for failure of consideration.

Mutual Insurance
86. Modification of Act in case of mutual insurance.

Supplemental
87. Ratification by assured.
88. Implied obligations varied by agreement or usage.
89. Reasonable time, etc., a question of fact.
90. Slip as evidence.
91. Interpretation.
92. Savings.

SCHEDULE
— Form of Policy.
— Rules for Construction of Policy.



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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

CHAPTER 349

MARINE INSURANCE
An Act relating to marine insurance.

[Commencement 8th June, 1908]
1. This Act may be cited as the Marine Insurance Act.

Marine Insurance
2. A contract of marine insurance is a contract

whereby the insurer undertakes to indemnify the assured,
in manner and to the extent thereby agreed, against marine
losses, that is to say, the losses incident to marine
adventure.

3. (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.

4. (1) Subject to the provisions of this Act, every
lawful marine adventure may be the subject of a contract of
marine insurance.

(2) In particular there is a marine adventure where —
(a) any ship, goods or other movables are exposed

to maritime perils. Such property is in this Act
referred to as “insurable property”;

(b) the earning or acquisition of any freight, passage
money, commission, profit, or other pecuniary
benefit, or the security for any advances, loan, or
disbursements, is endangered by the exposure of
insurable property to maritime perils;

(c) any liability to a third party may be incurred by
the owner of, or other person interested in or


39 of 1908

Short title.

Marine insurance
defined.

Mixed sea and
land risks.

Marine adventure
and maritime
perils defined.

CH.349 – 6] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

responsible for, insurable property, by reason of
maritime perils.
“maritime perils” means the perils consequent on, or

incidental to, the navigation of the sea, that Is to
say, perils of the seas, fire, war perils, pirates,
rovers, thieves, captures, seizures, restraints and
detainments of princes and peoples, jettisons,
barratry and any other perils, either of the like
kind or which may be designated by the policy.

Insurable Interest
5. (1) Every contract of marine insurance by way

of gaming or wagering is void.
(2) A contract of marine insurance is deemed to be a

gaming or 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;

(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.

6. (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.

7. (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:

Avoidance of
wagering or
gaming contracts.

Insurable interest
defined.

When interest
must attach.

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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.

8. (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.

9. A partial interest of any nature is insurable.
10. (1) The insurer under a contract of marine

insurance has an insurable interest in his risk, and may re-
insure in respect of it.

(2) Unless the policy otherwise provides, the original
assured has no right or interest in respect of such re-
insurance.

11. The lender of money on bottomry or respondentia
has an insurable interest in respect of the loan.

12. The master or any member of the crew of a ship
has an insurable interest in respect of his wages.

13. 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.

14. The assured has an insurable interest in the
charges of any insurance which he may effect.

15. (1) Where subject-matter insured is mortgaged
the mortgagor has an insurable interest in the full value
thereof, and the mortgagee has an insurable interest in
respect of any sum due or to become due under the
mortgage.

(2) A mortgagee, consignee, or other person having
an interest in the subject-matter insured may insure on
behalf and for the benefit of other persons interested as
well as for his own benefit.

Defeasible or
contingent
interest.

Partial interest.

Re-insurance.

Bottomry.

Master’s and
seamen’s wages.

Advance freight.

Charges of
insurance.

Quantum of
interest.

CH.349 – 8] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(3) The owner of insurable property has an insurable
interest in respect of the full value thereof, notwithstanding
that some third person may have agreed, or be liable, to
indemnify him in case of loss.

16. Where the assured assigns or otherwise parts
with his interest in the subject-matter insured, he does not
thereby transfer to the assignee his rights under the contract
of insurance, unless there be an express or implied
agreement with the assignee to that effect.

But the provisions of this section do not effect a
transmission of interest by operation of law.

Insurable Value
17. Subject to any express provision or valuation in

the policy, the insurable value of the subject-matter insured,
must be ascertained as follows —

(a) in insurance on a ship, the insurable value is the
value, at the commencement of the risk, of the
ship, including her outfit, provisions and stores
for the officers and crew, money advanced for
seamen’s wages, and other disbursements (if
any) incurred to make the ship fit for the voyage
of adventure contemplated by the policy, plus
the charges of insurance upon the whole; the
insurable value, in the case of a steamship,
includes also the machinery, boilers and coals
and engine stores if owned by the assured, and,
in the case of a ship engaged in a special trade,
the ordinary fittings requisite for that trade;

(b) in insurance on freight, whether paid in advance
or otherwise, the insurable value is the gross
amount of the freight at the risk of the assured,
plus the charges of insurance;

(c) in insurance on goods or merchandise, the
insurable value is the prime cost of the property
insured, plus the expenses of and incidental to
shipping and the charges of insurance upon the
whole;

(d) in insurance on any other subject-matter, the
insurable value is the amount at the risk of the
assured when the policy attaches, plus the
charges of insurance.

Assignment of
interest.

Measure of
insurable value.

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Disclosure and Representations
18. A contract of marine insurance is a contract

based upon the utmost good faith, and, if the utmost good
faith be not observed by either party, the contract may be
avoided by the other party.

19. (1) Subject to the provisions of this section, the
assured must disclose to the insurer, before the contract is
concluded, every material circumstance which is known to
the assured, and the assured is deemed to know every
circumstance which, in the ordinary course of business,
ought to be known by him. If the assured fails to make
such disclosure, the insurer may avoid the contract.

(2) Every circumstance is material which would
influence the judgment of a prudent insurer in fixing the
premium, or determining whether he will take the risk.

(3) In the absence of inquiry the following circum-
stances need not be disclosed, namely —

(a) any circumstance which diminishes the risk;
(b) any circumstance which is known or presumed

to be known to the insurer. The insurer is
presumed to know matters of common notoriety
or knowledge, and matters which an insurer in
the ordinary course of his business, as such,
ought to know;

(c) any circumstance as to which information is
waived by the insurer;

(d) any circumstance which it is superfluous to
disclose by reason of any express or implied
warranty.

(4) Whether any particular circumstance, which is not
disclosed, be material or not, is, in each case a question of
fact.

(5) The term “circumstance” includes any commu-
nication made to, or information received by, the assured.

20. Subject to the provisions of section 19 of this
Act as to circumstances which need not be disclosed,
where an insurance is effected for the assured by an agent,
the agent must disclose to the insurer —

(a) every material circumstance which is known to
himself, and an agent to insure is deemed to


Insurance is
uberrimae fidei.

Disclosure by
assured.

Disclosure by
agent effecting
insurance.

CH.349 – 10] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

know every circumstance which in the ordinary
course of business ought to be known by, or to
have been communicated to, him; and

(b) every material circumstance which the assured is
bound to disclose, unless it come to his knowl-
edge too late to communicate it to the agent.

21. (1) Every material representation made by the
assured or his agent to the insurer during the negotiations
for the contract, and before the contract is concluded, must
be true. If it be untrue the insurer may avoid the contract.

(2) A representation is material which would
influence the judgment of a prudent insurer in fixing the
premium, or determining whether he will take the risk.

(3) A representation may be either a representation
as to a matter of fact, or as to a matter of expectation or
belief.

(4) A representation as to a matter of fact is true, if
it be substantially correct, that is to say, if the difference
between what is represented and what is actually correct
would not be considered material by a prudent insurer.

(5) A representation as to a matter of expectation or
belief is true if it be made in good faith.

(6) A representation may be withdrawn or corrected
before the contract is concluded.

(7) Whether a particular representation be material
or not is, in each case, a question of fact.

22. A contract of marine insurance is deemed to be
concluded when the proposal of the assured is accepted by
the insurer, whether the policy be then issued or not, and
for the purpose of showing when the proposal was
accepted, reference may be made to the slip or covering
note or other customary memorandum of the contract.

The Policy
23. Subject to the provisions of any Act a contract

of marine insurance is inadmissible in evidence unless it is
embodied in a marine policy in accordance with this Act.
The policy may be executed and issued either at the time
when the contract is concluded, or afterwards.

Representations
pending
negotiation of
contract.

When contract is
deemed to be
concluded.

Contract must be
embodied in
policy.

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24. A marine policy must specify —
(a) the name of the assured, or of some person who

effects the assurance on his behalf;
(b) the subject-matter insured and the risk insured

against;
(c) the voyage, or period of time, or both, as the

case may be, covered by insurance;
(d) the sum or sums insured;
(e) the name or names of the insurers.
25. (1) A marine policy must be signed by or on

behalf of the insurer:
Provided that in the case of a corporation the

corporate seal may be sufficient, but nothing in this section
shall be construed as requiring the subscription of a
corporation to be under seal.

(2) Where a policy is subscribed by or on behalf of
two or more insurers, each subscription, unless the contrary
be expressed, constitutes a distinct contract with the
assured.

26. (1) 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”, and where
the contract is to insure the subject-matter for a definite
period of time the policy is called a “time policy”. A
contract for both voyage and time may be included in the
same policy.

(2) A time policy which is made for any time
exceeding twelve months is invalid.

27. (1) The subject-matter insured must be
designated in a marine policy with reasonable certainty.

(2) The nature and extent of the interest of the
assured in the subject-matter insured need not be specified
in the policy.

(3) Where the policy designates the subject-matter
insured in general terms, it shall be construed to apply to
the interest intended by the assured to be covered.

(4) In the application of this section regard shall be
had to any usage regulating the designation of the subject-
matter insured.

What policy must
specify.

Signature of
insurer.

Voyage and time
policies.

Designation of
subject-matter.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

28. (1) A policy may be either valued or unvalued.
(2) A valued policy is a policy which specifies the

agreed value of the subject-matter insured.
(3) Subject to the provisions of this Act, and in the

absence of fraud, the value fixed by the policy is, as
between the insurer and assured, conclusive of the
insurable value of the subject intended to be insured,
whether the loss be total or partial.

(4) Unless the policy otherwise provides, the value
fixed by the policy is not conclusive for the purpose of
determining whether there has been a constructive total
loss.

29. An unvalued policy is a policy which does not
specify the value of the subject-matter insured, but, subject
to the limit of the sum insured, leaves the insurable value
to be subsequently ascertained, in the manner hereinbefore
specified.

30. (1) A floating policy is a policy which describes
the insurance in general terms, and leaves the name of the
ship or ships and other particulars to be defined by
subsequent declaration.

(2) The subsequent declaration or declarations may
be made by endorsement on the policy, or in other
customary manner.

(3) Unless the policy otherwise provides, the declara-
tions must be made in the order of dispatch or shipment. They
must in the case of goods comprise all consignments within the
terms of the policy, and the value of the goods or other
property must be honestly stated, but an omission or erroneous
declaration may be rectified even after loss or arrival, provided
the omission or declaration was made in good faith.

(4) Unless the policy otherwise provides, where a
declaration of value is not made until after notice of loss or
arrival, the policy must be treated as an unvalued policy as
regards the subject-matter of that declaration.

31. (1) A policy may be in the form in the Schedule
of this Act.

(2) Subject to the provisions of this Act, and unless
the context of the policy otherwise requires, the terms and


Valued policy.

Unvalued policy.

Floating policy
by ship or ships.

Construction of
terms in policy.
Schedule.

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expressions mentioned in the Schedule to this Act shall be
construed as having the scope and meaning in that
Schedule assigned to them.

32. (1) Where an insurance is effected at a premium
to be arranged, and no arrangement is made, a reasonable
premium is payable.

(2) Where an insurance is effected on the terms that
an additional premium is to be arranged in a given event,
and that event happens, but no arrangement is made, then a
reasonable additional premium is payable.

Double Insurance
33. (1) Where two or more policies are effected by

or on behalf of the assured on the same adventure and
interest or any part thereof, and the sums insured exceed
the indemnity allowed by this Act, the assured is said to be
over-insured by double insurance.

(2) Where the assured is over-insured by double
insurance —

(a) the assured, unless the policy otherwise
provides, may claim payment from the insurers
in such order as he may think fit:

Provided that he is not entitled to receive any
sum in excess of the indemnity allowed by this
Act;

(b) where the policy under which the assured claims
is a valued policy, the assured must give credit
as against the valuation for any sum received by
him under any other policy without regard to the
actual value of the subject-matter insured;

(c) where the policy under which the assured claims
is an unvalued policy he must give credit, as
against the full insurable value, for any sum
received by him under any other policy;

(d) where the assured receives any sum in excess of
the indemnity allowed by this Act, he is deemed
to hold such sum in trust for the insurers,
according to their right of contribution among
themselves.

Premium to be
arranged.

Double
insurance.

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Warranties, etc.
34. (1) A warranty, in the following sections relating

to warranties, means a promissory warranty, that is to say,
a warranty by which the assured undertakes that some
particular thing shall or shall not be done, or that some
condition shall be fulfilled, or whereby he affirms or
negatives the existence of a particular state of facts.

(2) A warranty may be express or implied.
(3) A warranty, as above defined, is a condition

which must be exactly complied with, whether it be
material to the risk or not. If it be not so complied with,
then, subject to any express provision in the policy, the
insurer is discharged from liability as from the date of the
breach of warranty, but without prejudice to any liability
incurred by him before that date.

35. (1) Non-compliance with a warranty is excused
when, by reason of a change of circumstances, the
warranty ceases to be applicable to the circumstances of
the contract, or when compliance with the warranty is
rendered unlawful by any subsequent law.

(2) Where a warranty is broken, the assured cannot
avail himself of the defence that the breach has been
remedied, and the warranty complied with, before loss.

(3) A breach of warranty may be waived by the
insurer.

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

(2) An express warranty must be included in, or
written upon, the policy, or must be contained in some
document incorporated by reference into the policy.

(3) An express warranty does not exclude an
implied warranty unless it be inconsistent therewith.

37. (1) Where insurable property, whether ship or
goods, is expressly warranted neutral, there is an implied
condition that the property shall have a neutral character at
the commencement of the risk, and that, so far as the
assured can control the matter, its neutral character shall be
preserved during the risk.

(2) Where a ship is expressly warranted “neutral”
there is also an implied condition that, so far as the assured


Nature of
warranty.

When breach of
warranty
excused.

Express
warranties.

Warranty of
neutrality.

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can control the matter, she shall be properly documented,
that is to say, that she shall carry the necessary papers to
establish her neutrality, and that she shall not falsify or
suppress her papers, or use simulated papers. If any loss
occurs through breach of this condition, the insurer may
avoid the contract.

38. There is no implied warranty as to the
nationality of a ship, or that her nationality shall not be
changed during the risk.

39. Where the subject-matter insured is warranted
“well” or “in good safety” on a particular day, it is
sufficient if it be safe at any time during that day.

40. (1) In a voyage policy there is an implied
warranty that at the commencement of the voyage the ship
shall be seaworthy for the purpose of the particular
adventure insured.

(2) Where the policy attaches while the ship is in
port, there is also an implied warranty that she shall, at the
commencement of the risk, be reasonably fit to encounter
the ordinary perils of the port.

(3) Where the policy relates to a voyage which is
performed in different stages, during which the ship
requires different kinds of or further preparation of
equipment, there is an implied warranty that at the
commencement of each stage the ship is seaworthy in
respect of such preparation or equipment for the purposes
of that stage.

(4) A ship is deemed to be seaworthy when she is
reasonably fit in all respects to encounter the ordinary
perils of the seas of the adventure insured.

(5) In a time policy there is no implied warranty that
the ship shall be seaworthy at any stage of the adventure,
but where, with the privity of the assured, the ship is sent
to sea in an unseaworthy state, the insurer is not liable for
any loss attributable to unseaworthiness.

41. (1) In a policy on goods or other movables there
is no implied warranty that the goods or movables are
seaworthy.

No implied
warranty of
nationality.

Warranty of good
safety.

Warranty of
seaworthiness of
ship.

No implied
warranty that
goods are
seaworthy.

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STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(2) In a voyage policy on goods or other movables
there is an implied warranty that at the commencement of
the voyage the ship is not only seaworthy as a ship, but
also that she is reasonably fit to carry the goods or other
movables to the destination contemplated by the policy,

42. There is an implied warranty that the adventure
insured is a lawful one, and that, so far as the assured can
control the matter, the adventure shall be carried out in a
lawful manner.

The Voyage
43. (1) Where the subject-matter is insured by a

voyage policy “at and from” or “from” a particular place, it
is not necessary that the ship should be at that place, when
the contract is concluded, but there is an implied condition
that the adventure shall be commenced within a reasonable
time, and that if the adventure be not so commenced the
insurer may avoid the contract.

(2) The implied condition may be negatived by
showing that the delay was caused by circumstances
known to the insurer before the contract was concluded, or
by showing that he waived the condition.

44. Where the place of departure is specified by the
policy, and the ship instead of sailing from that place sails
from any other place, the risk does not attach.

45. Where the destination is specified in the policy,
and the ship, instead of sailing for that destination, sails for
any other destination, the risk does not attach.

46. (1) Where, after the commencement of the risk,
the destination of the ship is voluntarily changed from the
destination contemplated by the policy, there is said to be a
change of voyage.

(2) Unless the policy otherwise provides, where
there is a change of voyage, the insurer is discharged from
the liability as from the time of change, that is to say, as
from the time when the determination to change it is
manifested; and it is immaterial that the ship may not in
fact have left the course of voyage contemplated by the
policy when the loss occurs.

Warranty of
legality.

Implied
condition as to
commencement
of risk.

Alteration of port
of departure.

Sailing for
different
destination.

Change of
voyage.

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47. (1) Where a ship, without lawful excuse, deviates
from the voyage contemplated by the policy, the insurer is
discharged from liability as from the time of deviation, and
it is immaterial that the ship may have regained her route
before any loss occurs.

(2) There is a deviation from the voyage
contemplated from the policy —

(a) where the course of the voyage is specifically
designated by the policy, and that course is
departed from;

(b) where the course of the voyage is not
specifically designated by the policy, but the
usual and customary course is departed from.

(3) The intention to deviate is immaterial; there
must be a deviation in fact to discharge the insurer from his
liability under the contract.

48. (1) Where several ports of discharge are
specified by the policy, the ship may proceed to all or any
of them, but, in the absence of any usage or sufficient
cause to the contrary, she must proceed to them, or such of
them as she goes to, in the order designated by the policy.
If she does not there is a deviation.

(2) Where the policy refers to “ports of discharge”,
within a given area, which are not named, the ship must, in
the absence of any usage or sufficient cause to the contrary,
proceed to them, or such of them as she goes to, in their
geographical order. If she does not there is a deviation.

49. In the case of a voyage policy, the adventure
insured must be prosecuted throughout its course with
reasonable despatch, and, if without lawful excuse it is not
so prosecuted, the insurer is discharged from liability as
from the time when the delay became unreasonable.

50. (1) Deviation or delay in prosecuting the voyage
contemplated by the policy is excused —

(a) where authorised by any special terms in the
policy;

(b) where caused by circumstances beyond the
control of the master and his employer;

(c) where reasonably necessary in order to comply
with an express or implied warranty;

(d) where reasonably necessary for the safety of the
ship or subject-matter insured;

Deviation.

Several ports of
discharge.

Delay in voyage.

Excuses for
deviation or
delay.

CH.349 – 18] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(e) for the purpose of saving human life, or aiding a
ship in distress where human life may be in
danger;

(f) where reasonably necessary for the purpose of
obtaining medical or surgical aid for any person
on board the ship; or

(g) where caused by the barratrous conduct of the
master or crew, if barratry be one of the perils
insured against.

(2) When the cause excusing the deviation or dealy
ceases to operate, the ship must resume her course, and
prosecute her voyage, with reasonable despatch.

Assignment of Policy
51. (1) A marine policy is assignable unless it

contains terms expressly prohibiting assignment. It may be
assigned either before or after loss.

(2) Where a marine policy has been assigned so as
to pass the beneficial interest in such policy, the assignee
of the policy is entitled to sue thereon in his own name;
and the defendant is entitled to make any defence arising
out of the contract which he would have been entitled to
make if the action had been brought in the name of the
person by or on behalf of whom the policy was effected.

(3) A marine policy may be assigned by
endorsement thereon or in other customary manner.

52. Where the assured has parted with or lost his
interest in the subject-matter insured, and has not, before or
at the time of so doing, expressly or impliedly agreed to
assign the policy, any subsequent assignment of the policy
is inoperative:

Provided that nothing in this section affects the
assignment of a policy after loss.

The Premium
53. Unless otherwise agreed, the duty of the assured

or his agent to pay the premium, and the duty of the insurer
to issue the policy to the assured or his agent, are current
conditions, and the insurer is not bound to issue the policy
until payment or tender of the premium.

When and how
policy is
assignable.

Assured who has
no interest cannot
assign.

When premium
payable.

MARINE INSURANCE [CH.349 – 19



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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

54. (1) Unless otherwise agreed, where a marine
policy is effected on behalf of the assured by a broker, the
broker is directly responsible to the insurer for the
premium, and the insurer is directly responsible to the
assured for the amount which may be payable in respect of
losses, or in respect of returnable premium.

(2) Unless otherwise agreed, the broker has, as
against the assured, a lien upon the policy for the amount
of the premium and his charges in respect of effecting the
policy; and, where he has dealt with the person who
employs him as a principal, he has also a lien on the policy
in respect of any balance or any insurance account which
may be due to him from such person unless when the debt
was incurred he had reason to believe that such person was
only an agent.

55. Where a marine policy effected on behalf of the
assured by a broker acknowledges the receipt of the
premium, such acknowledgement is, in the absence of
fraud, conclusive as between the insured and the assured,
but not as between the insurer and broker.

Loss and Abandonment
56. (1) Subject to the provisions of this Act, and

unless the policy otherwise provides, the insurer is liable
for any loss proximately caused by a peril insured against,
but, subject as aforesaid, he is not liable for any loss which
is not proximately caused by a peril insured against.

(2) In particular —
(a) the insurer is not liable for any loss attributable

to the wilful misconduct of the assured, but,
unless the policy otherwise provides, he is liable
for any loss proximately caused by a peril
insured against, even though the loss would not
have happened but for the misconduct or
negligence of the master or crew;

(b) unless the policy otherwise provides, the insurer
of ship or goods is not liable for any loss
proximately caused by delay, although the delay
be caused by a peril insured against;

(c) unless the policy otherwise provides, the insurer
is not liable for ordinary wear and tear, ordinary
leakage and breakage, inherent vice or nature of
the subject-matter insured, or for any loss


Policy effected
through broker.

Effect of receipt
on policy.

Included and
excluded losses.

CH.349 – 20] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

proximately caused by rats or vermin, or for any
injury to machinery not proximately caused by
maritime perils.

57. (1) A loss may be either total or partial. Any loss
other than a total loss, as hereinafter defined, is a partial
loss.

(2) A total loss may be either an actual total loss, or
a constructive total loss.

(3) Unless a different intention appears from the
terms of the policy, an insurance against total loss includes
a constructive, as well as an actual, total loss.

(4) Where the assured brings an action for a total
loss and the evidence proves only a partial loss, he may,
unless the policy otherwise provides, recover for a partial
loss.

(5) Where goods reach their destination in specie,
but by the reason of obliteration or marks, or otherwise,
they are incapable of identification, the loss, if any, is
partial, and not total.

58. (1) When the subject-matter insured is destroyed,
or so damaged as to cease to be a thing of the kind insured,
or where the assured is irretrievably deprived thereof, there
is an actual total loss.

(2) In the case of an actual total loss no notice of
abandonment need be given.

59. Where the ship concerned in the adventure is
missing, and after the lapse of a reasonable time no news
of her has been received, an actual total loss may be
presumed.

60. Where, by a peril insured against, the voyage is
interrupted at an intermediate port or place, under such
circumstances as, apart from any special stipulation in the
contract of affreightment, to justify the master in landing
and re-shipping the goods or other movables, or in
transshipping them, and sending them on to their
destination, the liability of the insurer continues, notwith-
standing the landing or transshipment.

61. (1) Subject to any express provision in the policy
there is a constructive total loss where the subject-matter
insured is reasonably abandoned on account of its actual loss
appearing to be unavoidable, or because it could not


Partial and total
loss.

Actual total loss.

Missing ship.

Effect of
transshipment,
etc.

Constructive
total loss defined.

MARINE INSURANCE [CH.349 – 21



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

be preserved from actual total loss without an expenditure
which would exceed its value when the expenditure had
been incurred.

(2) In particular, there is a constructive total loss —
(a) where the assured is deprived of the possession

of his ship or goods by a peril insured against;
and —

(i) it is unlikely that he can recover the ship
or goods, as the case may be; or

(ii) the cost of recovering the ship or goods, as
the case may be, would exceed their value
when recovered; or

(b) in the case of damage to a ship, where she is so
damaged by a peril insured against that the cost
of repairing the damage would exceed the value
of the ship when repaired. In estimating the cost
of repairs, no deduction is to be made in respect
of general average contributions to those repairs,
payable by other interests, but account is to be
taken of the expense of future salvage operations
and of any future general average contributions
to which the ship would be liable if repaired; or

(c) in the case of damage to goods, where the cost of
repairing the damage and forwarding the goods to
their destination would exceed their value on
arrival.

62. Where there is a constructive total loss the
assured may either treat the loss as a partial loss, or
abandon the subject-matter insured to the insurer and treat
the loss as if it were an actual total loss.

63. (1) Subject to the provisions of this section, where
the assured elects to abandon the subject-matter insured to the
insurer, he must give notice of abandonment. If he fails to do
so the loss can only be treated as a partial loss.

(2) Notice of abandonment may be given in writing,
or by word of mouth, or partly in writing and partly by word
of mouth, and may be given in any terms which indicate the
intention of the assured to abandon his insured interest in the
subject-matter insured unconditionally to the insurer.

Effect of
constructive total
loss.

Notice of
abandonment.

CH.349 – 22] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(3) Notice of abandonment may be given with
reasonable diligence after the receipt of reliable
information of the loss, but where the information is of a
doubtful character the assured is entitled to a reasonable
time to make inquiry.

(4) Where notice of abandonment is properly given,
the rights of the assured are not prejudiced by the fact that
the insurer refuses to accept the abandonment.

(5) The acceptance of an abandonment may be
either express or implied from the conduct of the insurer.
The mere silence of the insurer after notice is not an
acceptance.

(6) Where notice of abandonment is accepted the
abandonment is irrevocable. The acceptance of the notice
conclusively admits liability for the loss and the
sufficiency of the notice.

(7) Notice of abandonment is unnecessary where, at
the time when the assured receives information of the loss,
there would be no possibility of benefit to the insurer if
notice were given to him.

(8) Notice of abandonment may be waived by the
insurer.

(9) Where an insurer has re-insured his risk, no
notice of abandonment need be given by him.

64. (1) Where there is valid abandonment the
insurer is entitled to take over the interest of the assured in
whatever may remain of the subject-matter insured, and all
proprietary rights incidental thereto.

(2) Upon the abandonment of a ship, the insurer
thereof is entitled to any freight in course of being earned,
and which is earned by her subsequent to the casualty
causing the loss, less the expenses of earning it incurred
after the casualty; and, where the ship is carrying the
owner’s goods, the insurer is entitled to a reasonable
remuneration for the carriage of them subsequent to the
casualty causing the loss.

Partial Losses (including Salvage and
General Average and Particular Charges)

65. (1) A particular average loss is a partial loss of
the subject-matter insured, caused by a peril insured
against, and which is not a general average loss.

Effect of
abandonment.

Particular
average loss.

MARINE INSURANCE [CH.349 – 23



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(2) Expenses incurred by or on behalf of the assured
for the safety or preservation of the subject-matter insured,
other than general average and salvage charges, are called
particular charges. Particular charges are not included in
particular average.

66. (1) Subject to any express provision in the policy,
salvage charges incurred in preventing a loss by perils
insured against may be recovered as a loss by those perils.

(2) “Salvage charges” means the charges
recoverable under maritime law by a salvor independently
of contract. They do not include the expenses of services in
the nature of salvage rendered by the assured or his agents,
or any person employed for hire by them, for the purpose
of averting a peril insured against. Such expenses, where
properly incurred, may be recovered as particular charges
or as a general average loss, according to the circumstances
under which they were incurred.

67. (1) A general average loss is a loss caused by or
directly consequential on a general average act. It includes
a general average expenditure as well as a general average
sacrifice.

(2) There is a general average act where any
extraordinary sacrifice or expenditure is voluntarily and
reasonably made or incurred in time of peril for the
purpose of preserving the property imperilled in the
common adventure.

(3) Where there is a general average loss, the party
on whom it falls is entitled, subject to the conditions
imposed by maritime law, to the rateable contribution from
the other parties interested, and such contribution is called
a general average contribution.

(4) Subject to any express provision in the policy,
where the assured has incurred a general average
expenditure, he may recover from the insurer in respect of
the proportion of the loss which falls upon him: and, in the
case of a general average sacrifice, he may recover from
the insurer in respect of the whole loss without having
enforced his right of contribution from the other parties
liable to contribute.

(5) Subject to any express provision in the policy,
where the assured has paid, or is liable to pay, a general
average contribution in respect of the subject insured, he
may recover therefor from the insurer.

Salvage charges.

General average
loss.

CH.349 – 24] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(6) In the absence of express stipulation, the insurer
is not liable for any general average loss or contribution
where the loss was not incurred for the purpose of
avoiding, or in connection with the avoidance of, a peril
insured against.

(7) Where ship, freight and cargo, or any two of
those interests, are owned by the same assured, the liability
of the insurer in respect of general average losses or
contributions is to be determined as if those subjects were
owned by different persons.

Measure of Indemnity
68. (1) The sum which the assured can recover in

respect of a loss on a policy by which he is insured, in the
case of an unvalued policy to the full extent of the
insurable value, or, in the case of a valued policy to the full
extent of the value fixed by the policy, is called the
measure of indemnity.

(2) Where there is a loss recoverable under the
policy, the insurer, or each insurer if there be more than
one, is liable for such proportion of the measure of
indemnity as the amount of his subscription bears to the
value fixed by the policy in the case of a valued policy, or
to the insurable value in the case of an unvalued policy.

69. Subject to the provisions of this Act and to any
express provision in the policy, where there is a total loss
of the subject-matter insured —

(a) if the policy be a valued policy, the measure of
indemnity is the sum fixed by the policy;

(b) if the policy be an unvalued policy, the measure
of indemnity is the insurable value of the subject-
matter insured.

70. Where a ship is damaged, but is not totally lost,
the measure of indemnity, subject to any express provision
in the policy, is as follows —

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

Extent of liability
of insurer for
loss.

Total loss.

Partial loss of
ship.

MARINE INSURANCE [CH.349 – 25



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(b) where the ship has been only partially repaired,
the assured is entitled to the reasonable cost of
such repairs, computed as above, and also to be
indemnified for the reasonable depreciation, if
any, arising from the unrepaired damage:

Provided that the aggregate amount shall not
exceed the cost of repairing the whole damage,
computed as above;

(c) where the ship has not been repaired, and has not
been sold in her damaged state during the risk, the
assured is entitled to be indemnified for the
reasonable depreciation arising from the un-
repaired damage, but not exceeding the reasonable
cost of repairing such damage, computed as above.

71. Subject to any express provision in the policy,
where there is a partial loss of freight, the measure of
indemnity is such proportion of the sum fixed by the policy
in the case of a valued policy, or of the insurable value in
the case of an unvalued policy, as the proportion of freight
lost by the assured bears to the whole freight at the risk of
the assured under the policy.

72. Where there is a partial loss of goods, merchan-
dise or other movables, the measure of indemnity, subject
to the express provision in the policy, is as follows —

(a) where part of the goods, merchandise or other
movables insured by a valued policy is totally
lost, the measure of indemnity is such proportion
of the sum fixed by the policy as the insurable
value of the part lost bears to the insurable value
of the whole, ascertained as in the case of an
unvalued policy;

(b) where part of the goods, merchandise or other
movables insured by an unvalued policy is
totally lost, the measure of indemnity is the
insurable value of the part lost, ascertained as in
case of total loss;

(c) where the whole or any part of the goods or
merchandise insured has been delivered damaged at
its destination, the measure of indemnity is such a
proportion of the sum fixed by the policy in the
case of a valued policy, or of the insurable


Partial loss of
freight.

Partial loss of
goods,
merchandise, etc.

CH.349 – 26] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

value in the case of an unvalued policy, as the
difference between the gross sound and
damaged values at the place of arrival bears to
the gross sound value;

(d) “gross value” means the wholesale price or, if
there be no such price, the estimated value, with,
in either case, freight, landing charges, and duty
paid beforehand:

Provided that in the case of goods or
merchandise customarily sold in bond, the
bonded price is deemed to be the gross value;

(e) “gross proceeds” means the actual price ob-
tained at a sale where all charges on sale are
paid by the sellers.

73. (1) Where different species of property are
insured under a single valuation, the valuation must be
apportioned over the different species in proportion to their
respective insurable values, as in the case of an unvalued
policy. The insured value of any part of a species is such
proportion of the total insured value of the same as the
insurable value of the part bears to the insurable value of
the whole, ascertained in both cases as provided by this
Act.

(2) Where a valuation has to be apportioned, and
particulars of the prime cost of each separate species,
quality or description of goods cannot be ascertained, the
division of the valuation may be made over the nett arrived
sound values of the different species, qualities or
descriptions of goods.

74. (1) Subject to any express provision in the
policy where the assured has paid, or is liable for, any
general average contribution, the measure of indemnity is
the full amount of such contribution, if the subject-matter
liable to contribution is insured for its full contributory
value; but, if such subject-matter be not insured for its full
contributory value, or if only part of it be insured, the
indemnity payable by the insurer must be reduced in
proportion to the under-insurance, and where there has
been a particular average loss which constitutes a
deduction from the contributory value, and for which the
insurer is liable, that amount must be deducted from the
insured value in order to ascertain what the insurer is liable
to contribute.

Apportionment
of valuation.

General average
contributions
and salvage
charges.

MARINE INSURANCE [CH.349 – 27



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(2) Where the insurer is liable for salvage charges
the extent of his liability must be determined on the like
principle.

75. Where the assured has effected an insurance in
express terms against any liability to a third party, the
measure of indemnity, subject to any express provision in
the policy, is the amount paid or payable by him to such
third party in respect of such liability.

76. (1) Where there has been a loss in respect of any
subject-matter not expressly provided for in the foregoing
provisions of this Act, the measure of indemnity shall be
ascertained, as nearly as may be, in accordance with those
provisions, in so far as applicable to the particular case.

(2) Nothing in the provisions of this Act relating to
the measure of indemnity shall affect the rules relating to
double insurance, or prohibit the insurer from disproving
interest wholly or in part, or from showing that at the time
of the loss the whole or any part of the subject-matter
insured was not at risk under the policy.

77. (1) Where the subject-matter insured is
warranted free from particular average, the assured cannot
recover for a loss of part, other than a loss incurred by a
general average sacrifice, unless the contract contained in
the policy be apportionable; but, if the contract be
apportionable, the assured may recover for a total loss of
any apportionable part.

(2) Where the subject-matter insured is warranted
free from particular average, either wholly or under a
certain percentage, the insurer is nevertheless liable for
salvage charges and for particular charges and other
expenses properly incurred pursuant to the provisions of
the suing and labouring clause in order to avert a loss
insured against.

(3) Unless the policy otherwise provides, where the
subject-matter insured is warranted free from particular
average under a specified percentage, a general average
loss cannot be added to a particular average loss to make
up the specified percentage.

(4) For the purpose of ascertaining whether the
specified percentage has been reached, regard shall be had
only to the actual loss suffered by the subject-matter


Liabilities to
third parties.

General
provisions as to
measure of
indemnity.

Particular
average
warranties.

CH.349 – 28] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

insured. Particular charges and the expenses of and
incidental to ascertaining and proving the loss must be
excluded.

78. (1) Unless the policy otherwise provides, and
subject to the provisions of this Act, the insurer is liable for
successive losses, even though the total amount of such
losses may exceed the sum insured.

(2) Where, under the same policy, a partial loss,
which has not been repaired or otherwise made good, is
followed by a total loss, the assured can only recover in
respect of the total loss:

Provided that nothing in this section shall affect the
liability of the insurer under the suing and labouring
clause.

79. (1) Where the policy contains a suing and
labouring clause, the engagement thereby entered into is
deemed to be supplementary to the contract of insurance,
and the assured may recover from the insurer any expenses
properly incurred pursuant to the clause, notwithstanding
that the insurer may have paid for a total loss, or that the
subject-matter may have been warranted free from
particular average, either wholly or under certain percen-
tage.

(2) General average losses and contributions and
salvage charges, as defined by this Act, are not recoverable
under the suing and labouring clause.

(3) Expenses incurred for the purpose of averting or
diminishing any loss not covered by the policy are not
recoverable under the suing and labouring clause.

(4) It is the duty of the assured and his agents, in all
cases, to take such measures as may be reasonable for the
purpose of averting or minimising a loss.

Rights of Insurer on Payment
80. (1) Where the insurer pays for a total loss, either

of the whole, or in the case of goods of any apportionable
part, of the subject-matter insured, he thereupon becomes
entitled to take over the interest of the assured in whatever
may remain of the subject-matter so paid for, and he is
hereby subrogated to all the rights and remedies of the
assured in and in respect of that subject-matter as from the
time of the casualty causing the loss.

Successive
losses.

Suing and
labouring clause.

Right of
subrogation.

MARINE INSURANCE [CH.349 – 29



–––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––
[Original Service 2001] STATUTE LAW OF THE BAHAMAS

(2) Subject to the foregoing provisions, where the
insurer pays for a partial loss, he acquires no title to the
subject-matter insured, or such part of it as may remain,
but he is thereupon subrogated to all rights and remedies of
the assured in and in respect of the subject-matter insured
as from the time of the casualty causing the loss, in so far
as the assured has been indemnified, according to this Act,
by such payment for the loss.

81. (1) Where the assured is over-insured by double
insurance, each insurer is bound, as between himself and
the other insurers, to contribute ratably to the loss in
proportion to the amount for which he is liable under his
contract.

(2) If any insurer pays more than his proportion of
the loss, he is entitled to maintain an action for contribution
against the other insurers, and is entitled to the like
remedies as a surety who has paid more than his proportion
of the debt.

82. Where the assured is insured for an amount less
than the insurable value or, in the case of a valued policy,
for an amount less than the policy valuation, he is deemed
to be his own insurer in respect of the uninsured balance.

Return of Premium
83. Where the premium or a proportionate part

thereof is, by this Act, declared to be returnable —
(a) if already paid, it may be recovered by the

assured from the insurer;
(b) if unpaid, it may be retained by the assured or

his agent.
84. Where the policy contains a stipulation for the

return of the premium, or a proportionate part thereof, on
the happening of a certain event, and that event happens,
the premium, or, as the case may be, the proportionate part
thereof, is thereupon returnable to the assured.

85. (1) Where the consideration for the payment of
the premium totally fails, and there has been no fraud or
illegality on the part of the assured or his agents, the
premium is thereupon returnable to the assured.

Right of
contribution.

Effect of under-
insurance.

Enforcement of
return.

Return by
agreement.

Return for failure
of consideration.

CH.349 – 30] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

(2) Where the consideration for the payment of the
premium is apportionable and there is a total failure of any
apportionable part of the consideration, a proportionate
part of the premium is, under the like conditions, there-
upon returnable to the assured.

(3) In particular —
(a) where the policy is void, or is avoided by the

insurer as from the commencement of the risk,
the premium is returnable:

Provided that there has been no fraud or
illegality on the part of the assured; but if the
risk is not apportionable, and has once attached,
the premium is not returnable;

(b) where the subject-matter insured, or part thereof,
has never been imperilled, the premium, or, as
the case may be, a proportionate part thereof, is
returnable:

Provided that where the subject-matter has
been insured “lost or not lost” and has arrived in
safety at the time when the contract is
concluded, the premium is not returnable unless,
at such time, the insurer knew of the safe arrival;

(c) where the assured has no insurable interest
throughout the currency of the risk, the premium
is returnable:

Provided that this rule does not apply to a
policy effected by way of gaming or wagering;

(d) where the assured has a defeasible interest
which is terminated during the currency of the
risk, the premium is not returnable;

(e) where the assured has over-insured under an
unvalued policy, a proportionate part of the
premium is returnable;

(f) subject to the foregoing provisions, where the
assured has over-insured by double insurance, a
proportionate part of the several premiums is
returnable:

Provided that if the policies are effected at
different times, and any earlier policy has at any
time borne the entire risk, or if a claim has been
paid on the policy in respect of the full sum
insured thereby, no premium is returnable in
respect of that policy, and when the double
insurance is effected knowingly by the assured
no premium is returnable.

MARINE INSURANCE [CH.349 – 31



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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

Mutual Insurance
86. (1) Where two or more persons mutually agree

to insure each other against marine losses there is said to be
a mutual insurance.

(2) The provisions of this Act relating to the
premium do not apply to mutual insurance, but a guarantee,
or such other arrangement as may be agreed upon, may be
substituted for the premium.

(3) The provisions of this Act, in so far as they may
be modified by the agreement of the parties, may in the
case of mutual insurance be modified by the terms of the
policies issued by the association, or by the rules and
regulations of the association.

(4) Subject to the exceptions mentioned in this
section, the provisions of this Act apply to a mutual
insurance.

Supplemental
87. Where a contract of marine insurance is in good

faith effected by one person on behalf of another, the
person on whose behalf it is effected may ratify the
contract even after he is aware of a loss.

88. (1) Where any right, duty or liability would arise
under a contract of marine insurance by implication of law,
it may be negatived or varied by express agreement, or by
usage, if the usage be such as to bind both parties to the
contract.

(2) The provisions of this section extend to any
right, duty or liability declared by this Act which may be
lawfully modified by agreement.

89. Where by this Act any reference is made to
reasonable time, reasonable premium, or reasonable
diligence, the question what is reasonable is a question of
fact.

90. Where there is a policy, reference may be made,
as heretofore, to the slip or covering note, in any legal
proceeding.

Modification of
Act in case of
mutual insurance.

Ratification by
assured.

Implied
obligations
varied by
agreement or
usage.

Reasonable time,
etc., a question of
fact.

Slip as evidence.

CH.349 – 32] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

91. In this Act, unless the context otherwise requires —
“action” includes counter-claim and set off;
“freight” includes the profit derivable by a shipowner

from the employment of his ship to carry his
own goods or movables, as well as freight
payable by a third party, but does not include
passage money;

“movables” means any movable tangible property,
other than the ship, and includes money,
valuable securities and other documents;

“policy” means a maritime policy.
92. The rules of the common law including the law

merchant, save in so far as they are inconsistent with the
express provisions of this Act, shall continue to apply to
contracts of marine insurance.

SCHEDULE (Section 31)
Form of Policy

BE IT KNOWN THAT ......................................... as well
in own name for and in the name and names of all and every
person or persons to whom the same doth, may or shall
appertain, in part or in all doth make assurance and cause
......... and them, and every of them, to be insured lost or not
lost, at and from ..................................................... Upon any
kind of goods and merchandises, and also upon the body,
tackle, apparel, ordinance, munition, artillery, boat and other
furniture, of and in the good ship or vessel called the
................ whereof is master under God, for this present
voyage, ................................................ or whosoever else shall
go for master in the said ship, or by whatsoever other name or
names the said ship, or the master thereof, is or shall be named
or called; beginning the adventure upon the said goods and
merchandises from the loading thereof aboard the said ship,
.............................................................. upon the said ship, etc.
and so shall continue and endure, during her abode there, upon
the said ship, etc. And further, until the said ship, with all her
ordnance, tackle, apparel, etc., and goods and merchandises
whatsoever shall be arrived at
........................................................................ upon the said
ship, etc., until she hath moored at anchor twenty-four hours in
good safety; and upon the goods and merchandises, until the
same be there discharged and safely landed. And it shall be



Interpretation.

Savings.

Lloyd’s S.G.
policy.

MARINE INSURANCE [CH.349 – 33



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[Original Service 2001] STATUTE LAW OF THE BAHAMAS


lawful for the said ship, etc., in this voyage, to proceed and
sail to and touch and stay at any ports or places whatsoever
without prejudice to this insurance. The said ship, etc., goods
and merchandises, etc., for so much as concerns the assured by
agreement between the assured and assurers in this policy, are
and shall be valued at ................................................................

Touching the adventures and perils which we the assurers
are contented to bear and do take upon us in this voyage: they
are of the seas, men of war, fire, enemies, pirates, rovers,
thieves, jettisons, letters of mart and counter-mart, surprisals,
takings at sea, arrests, restraints, and detainments of all kings,
princes and people, of what nation, condition, or quality
soever, barratry of the master and mariners, and all other
perils, losses and misfortunes, that have or shall come to the
hurt, detriment or damage of the said goods and merchandises,
and ship, etc., or any part thereof. And in case of any loss or
misfortune it shall be lawful to the assured, their factors,
servants and assigns, to sue, labour, and travel for, in and
about the defence, safeguards, and recovery of the said goods
and merchandises, and ship, etc., or any part thereof, without
prejudice to this insurance; to the charges whereof we, the
assurers, will contribute each one, according to the rate and
quantity of his sum herein assured. And it is especially
declared and agreed that no acts of the insurer or insured in
recovering, saving, or preserving the property insured shall be
considered as a waiver, or acceptance of abandonment. And it
is agreed by us, the insurers, that this writing or policy of
assurance shall be of as much force and effect as the surest
writing or policy of assurance heretofore made in Lombard
Street, or in the Royal Exchange, or elsewhere in London. And
so we, the assurers, are contented, and do hereby promise and
bind ourselves, each one for his own part, our heirs executors,
and goods to the assured, their executors, administrators, and
assigns for the true performance of the premises, confessing
ourselves paid the consideration due unto us for this assurance
by the assured, at and after the rate of

IN WITNESS whereof we, the assurers, have subscribed
our names and sums assured at ................................................

N.B. Corn, fish, salt, fruit, flour, and seed are warranted
free from average, unless general or the ship be stranded-
sugar, tobacco, hemp, flax, hides and skins are warranted free
from average, under five pounds per cent, and all other goods,
also the ship and freight, are warranted free from average,
under three pounds per cent, unless general, or the ship be
stranded.



(Sue and labour
clause.)

(Waiver clause.)

[Memorandum.]

CH.349 – 34] MARINE INSURANCE





STATUTE LAW OF THE BAHAMAS [Original Service 2001]

Rules for Construction of Policy
The following are the rules referred to by this Act for the

construction of a policy in the above or other like form, where
the context does not otherwise require —

1. Where the subject-matter is insured “lost or not lost”,
and the loss has occurred before the contract is concluded, the
risk attaches unless, at such time the assured was aware of the
loss, and the insurer was not.

2. Where the subject-matter is insured “from” a particular
place, the risk does not attach until the ship starts on the voyage
insured.

3. (a) Where a ship is insured “at and from” a particular
place, and she is at that place in good safety when the contract is
concluded, the risk attaches immediately.

(b) If she be not at that place when the contract is
concluded the risk attaches as soon as she arrives there in good
safety, and, unless the policy otherwise provides, it is immaterial
that she is covered by another policy for a specified time after
arrival.

(c) Where chartered freight is insured “at and from” a
particular place, and the ship is at that place in good safety when
the contract is concluded the risk attaches immediately. If she be
not there when the contract is concluded, the risk attaches as
soon as she arrives there in good safety.

(d) Where freight, other than chartered freight, is
payable without special conditions and is insured “at and from”
a particular place, the risk attaches pro rata as the goods or
merchandise are shipped; provided that if there be cargo in
readiness which belongs to the shipowner, or which some other
person has contracted with him to ship, the risk attaches as soon
as the ship is ready to receive such cargo.

4. Where goods or other movables are insured “from the
loading thereof”, the risk does not attach until such goods or
movables are actually on board, and the insurer is not liable for
them while in transit from the shore to the ship.

5. Where the risk on goods or other movables continues
until they are “safely landed”, they must be landed in the
customary manner and within a reasonable time after arrival at
the port of discharge, and if they are not so landed the risk
ceases.

6. In the absence of any further licence or usage, the liberty
to touch and stay “at any port or place whatsoever” does not
authorise the ship to depart from the course of her voyage from
the port of departure to the port of destination.

7. The term “perils of the seas” refers only to fortuitous
accidents or casualties of the seas. It does not include the ordinary
action of the winds and waves.

Lost or not lost.

From.

At and from.

Freight.

From the loading
thereof.

Safely landed.

Touch and stay.

Perils of the seas.

MARINE INSURANCE [CH.349 – 35



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[Original Service 2001] STATUTE LAW OF THE BAHAMAS

8. The term “pirates” includes passengers who mutiny and
rioters who attack the ship from the shore.

9. The term “thieves” does not cover clandestine theft or a
theft committed by any one of the ship’s company, whether crew
or passengers.

10. The term “arrests, etc., of kings, princes, and people”
refers to political or executive acts, and does not include a loss
caused by riot or by ordinary judicial process.

11. The term “barratry” includes every wrongful act
wilfully committed by the master or crew to the prejudice of the
owner, or, as the case may be, the charterer.

12. The term “all other perils” includes perils similar in
kind to the perils specifically mentioned in the policy.

13. The term “average unless general” means a partial
loss of the subject-matter insured other than a general average
loss, and does not include “particular charges”.

14. Where the ship has stranded, the insurer is liable for
the excepted losses, although the loss is not attributable to the
stranding, provided that when the stranding takes place the risk
has attached and, if the policy be on goods, that the damaged
goods are on board.

15. The term “ship” includes the hull, materials and outfit,
stores and provisions for the officers and crew, and, in the case of
vessels engaged in a special trade, the ordinary fittings requisite
for the trade, and also, in the case of a steamship, the machinery,
boilers, and coals and engine stores, if owned by the assured.

16. The term “freight” includes the profit derivable by a
shipowner from the employment of his ship to carry his own
goods or movables, as well as freight payable by a third party,
but does not include passage money.

17. The term “goods” means goods in the nature of
merchandise, and does not include personal effects or provisions
and stores for use on board.

In the absence of any usage to the contrary, deck cargo and
living animals must be insured specifically, and not under the
general denomination of goods.


Pirates.

Thieves.

Restraint of
princes.

Barratry.

All other perils.

Average unless
general.

Stranded.

Ship.

Freight.

Goods.

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