Sections Particulars
1 Short title and commencement
(1) This Act may be called the Marine Insurance Act, 1963. (2) It shall come into force on such date1 as the Central Government may, by notification in th...
2 Definitions
In this Act, unless the context otherwise requires,- (a) "contract of marine insurance" means a contract of marine insurance as defined by section3; (b) "fr...
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, agains...
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 o...
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...
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 assur...
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 inte...
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: tha...
9 Defensible or contingent interest
(1) A defensible interest is insurable, as also is a contingent interest. (2) In particular, where the buyer of goods has insured them, he has an insurable in...
10 Partial interest
A partial interest of any nature is insurable....
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 otherwis...
12 Bottomry
The lender of money on bottomry or respondentia has an insurable interest in respect of the loan....
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...
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....
15 Charges of insurance
The assured has an insurable interest in the charges of any insurance which he may effect....
16 Quantum of interest
(1) Where the subject-matter insured is mortgaged, the mortgagor has an insurable interest in the full value thereof, and the mortgagee has an insurable inter...
17 Assignment of interest
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 th...
18 Measure of insurable value
Subject to any express provision or valuation in the policy, the insurable value of the subject-matter insured must be ascertained as follows:- (1) In insuran...
19 Insurance is uberrimae fidei
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 ...
20 Disclosure by assured
(1) Subject to the provisions of this section, the assured must disclose to the insurer, before the contract is concluded, every material circumstance which, ...
21 Disclosure by agent effecting insurance
Subject to the provisions of the preceding section as to circumstances which need not be disclosed, where an insurance is effected for the assured by an agent...
22 Representations pending negotiation of contract
(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 conclud...
23 When contract is deemed to be concluded
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...
24 Contract must be embodied in policy
A contract of marine insurance shall not be admitted in evidence unless it is embodied in a marine policy in accordance with this Act. The policy may be execu...
25 What policy must specify
A marine policy must specify- (1) the name of the assured, or of some person who effects the insurance on his behalf; (2) the subject-matter insured and the ...
26 Signature of insurer
(1) A marine policy must be signed by or on behalf of the insurer. (2) Where a policy is subscribed by or on behalf of two or more insurers, each subscription...
27 Voyage and time policies
(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 ...
28 Designation and subject matter
(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 th...
29 Valued policy
(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 ...
30 Unvalued policy
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 insur...
31 Floating policy by ship or ships
(1) 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 b...
32 Construction of terms in policy
(1) A policy may be in the form in the Schedule. (2) Subject to the provisions of this Act, and unless the context of the policy otherwise requires, the term...
33 Premium to be arranged
(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 effect...
34 Double insurance
(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...
35 Nature of warranty
(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 ...
36 When breach of warranty excused
(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 c...
37 Express warranties
(1) An express warranty may be in any form of words from which the intention to warrant is to be inferred. (2) An express warranty must be included in, or wr...
38 Warranty of neutrality
(1) Where insurable property, whether ship or goods, is expressly warranted neutral, there is an implied condition that the property shall have a neutral char...
39 No. implied warranty of nationality
There is no implied warranty as to the nationality of a ship or that her nationality shall not be changed during the risk....
40 Warranty of good safety
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....
41 Warranty of seaworthiness of ship
(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 adven...
42 No implied warranty that goods are seaworthy
(1) In a policy on goods or other movables there is no implied warranty that the goods or movables are seaworthy. (2) In a voyage policy on goods or other mo...
43 Warranty of legality
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 carrie...
44 Implied condition as to commencement of risk
(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 pl...
45 Alteration of port of departure
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....
46 Sailing for different destination
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 at...
47 Change of voyage
(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 sa...
48 Deviation
(1) Where a ship, without lawful excuse, deviates from the voyage contemplated by the policy, the insured is discharged from liability as from the time of dev...
49 Several ports of discharge
(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 c...
50 Delay in voyage
In the case of a voyage policy, the adventure insured must be prosecuted throughout its course with reasonable dispatch, and; if without lawful excuse it is n...
51 Excuse for deviation or delay
(1) Deviation or delay in prosecuting the voyage contemplated by the policy is excused- (a) where authorized by any special term in the policy; or  (b) where ...
52 When and how policy is assignable
(1) A marine policy may be transferred by assignment unless it contains terms expressly prohibiting assignment. It may be assigned either before or after loss...
53 Assured who has no interest can not assign
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 ag...
54 When premium payable
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,...
55 Included and excluded losses
(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 ...
56 Partial and total loss
(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 act...
57 Actual total loss
(1) Where 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...
58 Missing ship
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 p...
59 Effect of transhipment, etc.
Where, by a peril insured against, the voyage is interrupted at intermediate port or place, under such circumstances as, apart from any special stipulation in...
60 Constructive total loss defined
(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 ...
61 Effect of constructive total loss
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 tre...
62 Notice of abandonment
(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 abandonme...
63 Effect of abandonment
(1) Where there is a valid abandonment the insurer is entitled to take over the interest of the assured in whatever may remain of the subject-matter insured, ...
64 Particular average loss
(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. (2)...
65 Salvage charges
(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 thos...
66 General average loss
(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 gene...
67 Extent of liability of insurer for loss
(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...
68 Total loss
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- (1) if the polic...
69 Partial loss of ship
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- (1) where the ship h...
70 Partial loss of freight
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 ...
71 Partial loss of goods, merchandise, etc.
Where there is a partial loss of goods, merchandise, or other movables, the measure of indemnity, subject of any express provision in the policy, is as follow...
72 Apportionment of valuation
(1) Where different species of property are insured under a single valuation, the valuation must be apportioned over the different species in proportion to th...
73 General average contributions and salvage charges
(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 i...
74 Liabilities to third parties
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 provisio...
75 General provisions as to measure of indemnity
(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 ...
76 Particular average warranties
(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...
77 Successive losses
(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...
78 Suing and laboring clause
(1) Where the policy contains a suing and laboring clause, the engagement thereby entered into is deemed to be supplementary to the contract of insurance, and...
79 Rights of subrogation
(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 thereup...
80 Right of Contribution
(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 ...
81 Effect of under-insurance
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...
82 Enforcement of return
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 t...
83 Return by agreement
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 ha...
84 Return for failure of consideration
(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, ...
85 Ratification by assured
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 co...
86 Implied obligation varied by agreement or usage
(1) Where any right, duty, or liability would arise under a contract of marine insurance by implication of law, it may be negative or varied by express agreem...
87 Reasonable time, etc., a question of fact
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...
88 Covering note as evidence
Where there is a duly stamped policy, reference may be made, as heretofore, to the slip or covering note, in any legal proceeding....
89 Power to apply Act with modifications, etc., in certain cases
The Central Government may, by notification in the Official Gazette, direct that the provisions of this Act shall, in their application to contracts of marine...
90 Certain provisions to override Transfer of Property Act, 1882
Nothing in clause (e) of section 6 of the Transfer of Property Act, 1882, shall affect the provisions of sections 17, 52, 53 and 79....
91 Savings
The rules of law, including the law merchant, which applied to contracts of marine insurance immediately before the commencement of this Act, save in so far a...
Schedule Form of Policy
(See section 24)    BE IT KNOWN THAT _________________ as well in   _________________________ own name as for and in the name and names of all and every other...
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