# Marine Insurance Act, 2018

> Unofficial digital reference edition. Consult the official sources or Gazette when legal accuracy is material.

- **Jurisdiction:** Federal
- **Subject:** Transport, aviation and maritime
- **Instrument type:** Act
- **Citation:** Act No. V of 2018
- **Enacted:** 2018-02-02
- **Catalogue verified:** 2026-09-06
- **Canonical HTML:** [View the formatted edition](https://law.legumlawfirm.co/Marine-Insurance-Act/)
- **Latest amendment:** No subsequent amending enactment identified through 6 September 2026.

## Content

### Parts, Chapters and Schedules

- Chapter V: Disc Losure And Representation
- Chapter VIII: Warranties
- Chapter IX: The Voyage
- Chapter XI: Thf, Prf,Mium
- Chapter XII: Loss And Abandonmf,Nt
- Chapter XV: Rights Of Insurer On Payment
- Chapter XVII: Mutual Insurancd
- Chapter XVIII: Supplemental
- Part I: ] Thecazetteofpakistan,Extra,,Feb. 7, 2Oi8 55

### Sections

- 1. Shorl litle, erlcnt, commetrcemcut and applicstion.
- 2. Dcfinitions.
- 3. Scope.
- 4. Mired sca atrd lsnd dsk!.
- 6. Avoidarce of wagerinS or goming contracts.
- 8. WhcD inlcrest most ottach,.
- 9. Defescible or conting€trt int€rcst.
- 10. Partial interest.
- 11. Reinsurance.
- 12. Maslcr'\ and seamer's wegcs.
- 13. Adv&Dcc freight.
- 14. Charges of insurencc.
- 15. Qusntum of Wherc the subject-matler insured is.
- 16. Aisignment of itrterest.
- 17. Meesurc of itrsunble vulu€.
- 18. lnsurance is uherrimac fidoi.
- 19. The duty oftair Frcsefltation.
- 20. Knowlcdge of insurer,.
- 21. Remedics for br€ach.ii) l-he insurer hcs a rnedy against dte.
- 22. When contrecl is deem€d to b€ corcluded.
- 23. Contrrct must be embodicd iD lolicy.
- 24. Whet policy must specify.
- 25. Sigoature of insurcr.
- 26. Voyagc nnd timc policics.
- 27. DesigtretioD of subi.ct-m.tler.
- 28. Vslued polic-v.
- 29. Unv.lued policy.
- 30. Floatin;4 policy by ship or shtps.(1) A floatinS policy is a.
- 31. Cotrstruction of term! in policy.
- 33. Double iDsurance.
- 34. Neture of warranty.
- 35. Whrn breach of worrsnt-y excused.
- 36. Erpress warranty.(1) An express wafianty may be in any form.
- 37. Wrrrrnry oI Deutrality.
- 38. No implied warr.Dty of nationrlity.
- 39. Warranty of good safety.
- 40. werronq ofserwonhincss of ship.
- 41. No implied wrrranty that goods sre seeworthy,.
- 42. Warrantl ot l€gality.
- 43. tmpllcd (otrditior as to commenccmenl of rirk---( l) Where the.
- 44. AlterrtioI ofport o, depa rlu re.
- 45. Ssilitrg lor dillerent dcstinotion.
- 46. Change of voyege.
- 47. Dcvialio'r.
- 48. Sev€ral portj of disch.rgc.<l) Where several ports ofdischarge.
- 50. Excuse! for d€viatiotr or del&y.
- 51. Whcn rnd how policy is assignablc.
- 52. lnsure(l who has no int€resl cennot,rsign.
- 53. When premium psy.ble.
- 54. Policy effected through broker.
- 55. f,flect of r€ceipt on policy.
- 56. Itrcluded and excluded losses.
- 57. Perrirl and totsl loss.
- 58. Actu{l totrl loss.
- 59. Missitrg ship.
- 60. Effect ol trrrslhipment, ctc,.
- 61. Cotrstrurtivc totol loss dcflned,.
- 63. Notice ol abondorment,.
- 64. l).
- 65. Prrticulxr avcragr loss.
- 66. Salvage chrrges.
- 68. Ertetrt of liability of lnsurcr for loss.
- 69. Totrl lo$.
- 70. Prrtirl los! of ship.
- 71. Partial loss of freighl.
- 72. Prrtial lo$3 of goods, merchardise etc.
- 73. Apportionment of vrlurtion.
- 74. General ryemge conlributions {nd salvrge charge!.
- 75. Lirbilit,c! to third parti€s.
- 76. General provisions os to metsune of indemnity.
- 77. Particular rverage w|rrsnties.(1) Where lhe subjecr-hatter.
- 78. Successivc losses.
- 79. Suing and labouring clause.
- 81. Right ot cootributtotr.
- 82. ElIect of undar iDlura[ce.
- 84. R€tum by rgre€mcnt.
- 85. Return lbr failure of consideration.i I ) where the consideration.
- 86. Modifioliotr of lhfu Acl itr crlc of muturl insurence.
- 87. Ratificaiio[ by assurcd.
- 88. Implicd obligations varied by agreement or usage.
- 91. Cerl.iin provisions to override the lraNfer of Proper{v Act 1882.
- 92. Repeal.
- 93. Power to issue directivd, circulars, guidelines.
- 94. Power to Erke Rules.
- 95. (o l).

### RXGISTERED NO.!4JI!2

L.-7ffi d tEbcGry;dc Dglffiur

=xr

### EXTRAOBDINARY

### PUBLISHED BY AUTHORITY

ISLAMABAD, WEDNESDAY, FEBRUARY 7, 2O1t

Acts, Ordinances, I'resident's Orders and Rcgulctiors

NATIONAL ASSEMBLY StrCRETARIAT

Islu\tuhd. the 7th Fchruary,2018

(Parliamcnl) reccivcd the assent of the Presidenl on thc 2nd February, 20lE is hereb) p0blished for geneml inlormarion -

A(.1 No. V or 20 tE ,ln.,1c t to provida lbt t hc rc$uktt ion of rhe h sincss of,r tirre insurunce

WHERIAS it is expedient to provide for the law relating to Marine lnsuranc€ and matters connected therewith and incidental thercro;

It is hereby e acted as follows:-

### CHAPTER.I

PRfLIMINARY

### 1. Shorl litle, erlcnt, commetrcemcut and applicstion.

{ ) This

### I

Acl !na.,_ bc called thc Marine lnsurance Acl. 20lE

(25)

Prrcc. Rs. 2A 50

[5217 26 TIIE GAZE'|TE Of PAKISIAN. EXTRA,, FEB, 7, 2OI8 lP^Rr I

(2) II exlends to lhe whole of Pikrs(an

(3) lt shall (,ome into lbrcc at oncc

(4) Notwitlstanding any olher law for the time being in force and save as other*ise expressl,, proviCed, this Acl shall apply lo every contract of Marinc Insurance,

### 2. Dcfinitions.

(1) In this Acl, unl€ss there is anythinA rcpugnant in the subject or context

(a) "actioo' includes counterclaim and s€t off;

(b) "Comm ssion' ncans Sccurities and Exchange Commission csurblisired under secrion 3 of the Securities and ExchEnSe Commi!sion ofPakistan Ac1. 1997 (XL[ of 199;):

(c) "freighi' includes the profit derivable by a shrp o$,fler from the employrrrent of his ship lo carry his own goods or moye6bles, as well as I'reight payablc by a third pa(y, but does not include passage money;

(d) "marinc insurance" means a conhact whereby the insuter undenal.es to indemnif] thc insurcd, in manner and to the exl€fll thereb) agrced, against nrarine losses, th8t is to say, the loss€s inciderrt to marinc adventure;

(e) 'maritinrc perils' means the perils consequent on, or incidental to, the navijation of the sca, rhal is lo say, perils of the seas, fire, war penls, pimtcs, thieves, capturcs, seizures, restmints and d€lainmenls of peoples, jettisons, balratr!' and any other perils, either of the like o kind vhich may be designated by the policy;

(D "moveables" means any movcablc tangible property, other tlun the ship and includes money, valuable sccuritics and olher documents;

(O "policy" mears a marine policy; and

(h) "ship" n eans any vessel used for the cariage ofgoods by sea.

(2) The worJs and expression used herein but not defihed in this Act shall have the sane rieaning as assigncd lo lhem in the Insurance Ordinance, 2000 unless thc contc) t rcquires otherwise.

CHAPTER.iI

### MARINE INSURA,N'CE

### 3. Scope.

This Act shall extend to all overseas movements and carriage ofgoods and services whether through ships, inland waterwavs, aircraft, road transport, rail services, ctc. as well as to all such carrying vehicles, as long as they are insured by a contract ofmarine insurance under this Act.

### 4. Mired sca atrd lsnd dsk!.

{l ) A contmct of marine insurance may, by its express terms or by uwge of trade. be e\tended so as to protect the insured against losses on inland rvateE or on any land risl: which may be incidental to any sea voyaSe.

(2) WherE a ship in course ofbuilding. or the launch ofa ship, or any advenrurc analogous 10 a marine adventure, is covered by a policy in the form pf a marine policy, the provisions of this Acl, in so far as applicable, shall apply thercto but, except as by this sectiorr provided, nolhing in this Act shall alter or affect 6ny rule of law applicable to any orl.tract of insurance other than a confact ofmarine insurance as by this Aci defined.

5. MariEc sdventure rnd mrrilime perils defin€d.-(1) Subjecl lo thc provisions of tlis Act- every lawful marine adventure mav be the suhjecl ofa contract of marine insurance.

(2) In particular, lhere is a marine adventure. where,-

(a) an) ship goods or olher moleablcs are exposed to maritime perils Such proprty is in this Acl rcfcrred to as "insu.able property";

(b) lhe eaming or acquisition of any frcigh! passage money, commission, profit, or other pecuniary benefit, or the security for any advances. loan or disbursements, is end3ngered by the exposure ofinsurable propcrtv lo maritime perils; and

(c) any liabilitv to a third psny may be incurrcd by the oDner of, or other person interested in or rcsponsible for. insurable propeny, by reason of maritime perils.

### CHAPTER.III

### INSTIRABLE TNTEREST

### 6. Avoidarce of wagerinS or goming contracts.

(1) Every contracl ofmarine insurance by way ofgaming or wagering is void.

28 2018

(2) A contra(t of rnarine insurance is deemed 10 be a gaming or wagering conrrsct,-

(a) where thc insured ha-. not an rnsurable interest as defined in reclion 7 and the contract is entered inlo with no cxpecklion of acquting ruch an interest: or

(b) wherc thr polic) is made "rnterest or no inlerest,'or ''without 'furlher pn)of of interest than the policy itscli' or ''without bcnefit ofsalvagc to the insurer,'or subject tD any olher like term:

Provided that, where there is no possibility of salvsgc, a policy may be eflected without benefrl ofsalva8e lo thc irsurcr.

7. lnsurabk irler€st dcfired.-(1) Subject to the provisions ofthis Act, every person hal an insurable interest who is inreresled in a marine adventurc,

(2) In panicu ar, a person is interested in a marine adventure where h€ stands in an) lcBal or cquitable relation to the adventure or to any insurable property at risk therein. in consequence ofrvhich he may benefil by thc safety or doe arival of insurable propertv, or may be prejudiced by ils loss, or by damaSe thereto, or by the dercntion lhereof. or ma) incur liabiliry in respect thermf

### 8. WhcD inlcrest most ottach,.

(1) The jnsured musl be irrtercsted in rhe subjecl has matl-,r insur€d at thc time of thc loss though he need not b€ i0tercsted whcn thc insrrrance is elTected

Provided lhat r'here the subject-mattcr is insurcd 'lost o. not lost," the insured may recovcr ahhough hc may not have acquired his interest until after the loss, unless at thc lime ol eflbcting the contract ofinsurance the insured was aware oflhe loss, 6nd the insurer was not.

(2) Where th. insmed hrs o inlerest a1 the time of thc loss, he cannot acqu ire interest by any rct or election alier he is aware of the loss.

### 9. Defescible or conting€trt int€rcst.

( l) A defeasible interest is insurable, as rlso is a c({lti[gcnt interest.

(2) In particu ar, where the buyer ofgoods has insured them, hc has sn insursble intcrcst, not\,, ilhslandinB that he might, al his election, have rejected the 8oods, or have rr$led them as at the seller's risk, by rcason of lhc latter's delay in making delirery or othenvise.

### 10. Partial interest.

A panial interest ofanv nature is insurable

### 11. Reinsurance.

The insurer under contract marine insurance has an insurable interest in his risk and may reinsure in respect ofit.

(2) Unless the policy otherwise provides, the original insured has no right or interest in resfect ofsuch reinsurarce.

### 12. Maslcr'\ and seamer's wegcs.

The masler or any member of the creu, ofa ship has an ilsurable inlerest in respect ofhis wa8es.

### 13. Adv&Dcc freight.

ln lhc casc of advance freight, the person advancing the freigh! havc an insurcble interest, in so far as such freight is not repayable in case ofloss.

### 14. Charges of insurencc.

Thc insured has an rnsurable interest in the charges ofany insurance $hich Ie xltly !i]icr. irter$t.(1)

### 15. Qusntum of Wherc the subject-matler insured is.

mortg'aged, the mortgagor has an insurablc intcrest in the full value thereofand the mo(gagee has an iDsumble interest irl respect of any sum due or to become due under the mongage.

(2) A mongagee, consjgnee or olher p€rson having an interEst in the subject-matter insured may insure on his olvn behalfand for the benefit ofother persons interestcd as well as for his own benefir.

(3) The owner ofinsurable prope(y has an insurable inlcrest in respect of lhe full value thereof, nohvithstanding that some third p€rson may have agreed; or be liable. lo indemniry him in cas€ ofloss.

### 16. Aisignment of itrterest.

Where th€ insured assigns or othenryise pa(s with his interesl rn lhe subject-molter insured, he does not thercby transfer to the assignee his rights under the contract of insumnce, unless therc be an cxpress or implied agrcameDt with the assignee to that effect:

Provided lhat the provisions of this section shall not affect a transmission olinterest by operation of law.

### CHAP-I'F,R.IV

### INSURABLE VALUE

### 17. Meesurc of itrsunble vulu€.

<l) Subject to any express provision or valuation in lhe policy, the insumble value of the subject'maller insurcd must be ascenained as follows.

THIJ CAZE'I.E O[' PAKISIAN, LXTRA,, FEB 7, 2OI8 I IPA",r'r

(a) In insurarce on ship, the insurable value is the yalue, at the commenciment of the risk of the ship, including her outilt, provision i and stores tbr the officers and clew, money advanced il fbr seam(n's wages and other disbnrsemcnts, any, incurred to make the ship fit for the vc],age or adventure conlemplated by the folicy, pl rs the charges oi insurance upon the wholel and

(b) the insur.rbl€ value, in the case of a nolorship, includes also the machiner',, gcneHtols boilers. fuel and engine slores if owned by the rnsurcd and, in the case ofa ship engaged irr a specral trade, the ordinar) llnings requisite for lhat rrade.

(2) ln insurar cc on freight, whether paid in advance or otheNise, the assurable value is the ross amount offreight at the risk ofthe insured, plus tlle

### I

charges of insurance.

(3) In insurarrce on goods or merchardise, the,nsui:rblc value is the prime cost of the prc.perty insured, plus the expenses of and incidental to shipping and the charg( s olirsurance upon the whole.

(4.) ln insurilr uc nn an] uther.ubject-nratter. lhe i:rcurablc vdlue is the amount al thr: risk ol lhe insured when rhe p.rlicy attaches, p[is the charges of insurance.

## CHAPTER V DISC LOSURE AND REPRESENTATION

### 18. lnsurance is uherrimac fidoi.

A corfiact of rnarine insurance is a contract [rascd r]pon t re utmost good failh.

### 19. The duty oftair Frcsefltation.

{I) Belore a con tract of insumnce is €nlered nrtD, the insr red is bound to rnake to the insurer a fa;r presentation of the risk. This obligatio:L shall be termed as the "DuLv ofFair l'resentation".

(2) to,- Accordintry. the insured will be required

(a) D,sclose el€vant mrterial circLrmstances \r,hich lhe insuted knows or oughl lo know, that could influence the decisio of an insurer in decidinet.vhether to insure thc risk and ifso, on lvhat tenns; or

(b) Provide sufficient infonnation to p$t a ]rtJdent insurer on Dotice that it ne(ds to make firrther enquiries for thc purpose ofrevealing those mat}ial circumslances

(i) hrsured \,,ill be considere(l to have known, or oulih1 lo havc I]

(a) Information that could be revealed by a reasonable sesrch of av8ilable internal information: or

(b) lnformation held or known by a person/ deparunenr responsible for eflectin3 or arranging insurance.

(4) Insrrrcd will b€ expected ro know such confidential information that is,-is kno\rn onlv to an individual who

(a) an agcnr of the insured, or any employee ofsuch agen!; or

(b) thc information was acquired by such agent or his employee, through a business relationship with a pe.son who is nor connected with the contract of Marine lnsurance.

(5) For the purpose of sub-clause (,+), the persons conn€cred with a arc,-contsacl of Marinc Insurance

(a) lhe insurcd or any other person for whom cover is p.ovided by the contmct: and

(b) If the contracr re-insures risks covered by anothcr conlracl, the p€rsons \\'ho are, by virtue ofthis sub-clause, connecled with that other contract,

(6) In the absence of an inquiry, subrlause (2) does nor rcquirc the insured to disclose a crrcumstance if,

(a) It diminirhes the risk; or

(b) The insurer knows it; or

(c) The insurer ought to knou i1; or

(d) The insured is presumed to know it; or

(e) lt is something as to whrch information is waived by the insurer

### 20. Knowlcdge of insurer,.

(1) For the purposes of sub-section l9(6xb), an insurer knows somelhing only if it is known to one or mone ofthe individuals who panicipat€ on behalf of rhe insurer in the decisio[ whether to tale the risk, and if so, on what terms whether rhe individual does so as.the insurcr's cmployee or agent, as an empioyee of the insurer's agent or in any othc. capacity.

(2) For the purposes of section l9(6xcr, an insurer ought lo know if,-somcthing only

(a) an employee or agent of the insurer knows it, and ought reasonably to havc passed on the relevant information to an individual mentioned in sub-section ( l), or

(b) the relcvanr information is held by the insurer and is readily

(1). availabl3 to an irldividual mentioned in sub-section (3) For the purposes of section l9(6)(d). an insurer is presumed to

(a) things u hich are common LDowledgc; and

(b) things \,,hich an rnsurer offenng insurance olth. class in quesion to insur:d in t|e field oI acri\,ity in question would reasonirbly be expecte,l to know ln the ordinary course cf business.

### 21. Remedics for br€ach.ii) l-he insurer hcs a rnedy against dte.

re insured for a brerch ofthe duty of fair presentation onb' if the insurel shorvs that, but for thc breac,t,lhe irsurEr,

(a) would not hale erltered into the contract oi'ihsuronce ilt all; or

(b) world have done so oDly on ditTerent tenns.

(2) Ifa qua ifyinS breach \yas dclibcr.,te,lhc insurcri

(a) lnay by notice to the insured, treat the contBsr of marine insurance as havrlg been terminated \rith effect fion lhe tirltc whell the variatio r \{as madel and

(b) nced no: return any ofthc premium paid

(3) If a qurlilying bleach was neither deliberale rror reckl.ss, then cither ofthc followintj renrcdies shall be available 1o the insnrer,

(a) if the nrsurer can show that it uould not harc entered into the nlarine ns rance contract on any 1crms, it will be able lo avoid the *ill contracl and refxsc to pay claims but haYc to returrl thc premiurr;

(b) the rnsurer may revie* and vnry the marine insurance policy in the light of ruch breach and the said marine insurance polic]' shall then ilil fro be treakjd as lmd been wrillen on those terms thc oulset; PART I] THE GAZETTE OF PN KISTAN, EXTRA,, FEB, ?,2018 l3

(c) Il lhe insurer can show that the different t€rms would have reduced or rcmovcd his liabilily for claims alrEady paid, then an insured may need to rcimbursc rhe insurcr accordingly;

(d) In other cases, inslead of chargrnS an additional premium, the insurer may be able to reduce claims' payments proportionately.

### 22. When contrecl is deem€d to b€ corcluded.

A contract of marine insurance is dcerned to bc corcluded whcn the proposal ofthe insured is accepted by the insurer, \hethcr the policy be lhen issued or not and, for the purpose ofshowing whcn rhc proposfll was accepted. reference may be made ro the slip or coYering note or other customary memorandum ofthe conlmct,

### CHAPTER.VI

### THE POLICY

### 23. Contrrct must be embodicd iD lolicy.

Sub_ject to the provisrons ofthis Act, a contract of marine insurance is in-admissible in evidenc€ unless it iI is embodied a marin€ policy in accordancc with this Act. The policy may be executcd and issucd either at thc lime when the contraq is concluded or after$ards.

### 24. Whet policy must specify.

A marine policy must specify the name of the insurcd or ofsome pcrson who clTects thc insurance on his bcholf.

### 25. Sigoature of insurcr.

<l) A rnarine policy must be signed by or on be|alfofthe insurer, provided lhal in lh€ case of a corpomtion the corporate serl may bc sulficient. but nothinS in this seclion shall be consrued os requiring lhc subscription ofa corpomtion to be [nder seal,

(2) Where a policy is subscribed by or on bchalf of two or morc insurers, each subscription, unlcss the contrary be expressed, constitr(es a distinct contmcl with the assured.

### 26. Voyagc nnd timc policics.

(1) Whcrc thc conlract is to insure the subjcct-nratter "at and from". or from onc place to another or others, the policy is called a ''voyage policy" and where the contract is to insure the subject-matlcr for a definite period of time the policy is called a "time policy" A contracl {or both voyagc and time may be included rn thc same policy.

(2) Nohvilhstanding anylhing i'r sub-section I above, a contmcl of nlarinc'[akaful shall b€ for a stated peflod oflime with an express stipulation to dre eflcct that lhe benefits urlder the said marine Takaful conhact shflll cease on anilal of the subjecl-malrer of Takaful on destinalion. or earler in cilse of fiurration of lhe rn:lritime vcnlure. '.

### 27. DesigtretioD of subi.ct-m.tler.

{ ) The subject-mancr insured

### I

musl be designated in a marine policy with reasonable certainD'-

(2) The natrrre and extent of rhc interest of the insured in the subjccl-rnatter insured Deed n,rt be specified in the pollcy.

(3) Where the pohcy designatcs lhe subject-matter insured in general terms, it sh0ll be conrtrued to apply to the interest intended by the insured (o bc covered.

(4) ln the arptication of this scction, regard shall be had to any usag€ r€gulating the designEtion ofthe subjeclmatter insured.

### 28. Vslued polic-v.

(1) A policy may be either vslued or unvalued

(2) A valuel policy is a policy which specifies the aSreed value oflhe subjccl-matter insure(1.

(3) Subject to the provisions of lhis Act and in the absencc ot. fmud. the value l'ixed by the policy is, as between the insurer and the insured. conclusive ofthe insrrrable value of lhc subject intended to bc insured, whether the loss be lotal or patial.

(4) Unless lhe policy otherwise provides, the value fixed by the pohcy is no! conclusive for the purpos€ of determining whether there has been a conslructivc tolal loss.

### 29. Unv.lued policy.

An unvelued policy is a policy which does nol sp€ciry the value of *e subject-matter insured, but, subject to the limil of the sum msured, leaves 'rhe insurable value to be subsequently ascertained, in the manner h€rcin before specified.

### 30. Floatin;4 policy by ship or shtps.(1) A floatinS policy is a.

policy which describ( s the insurance in general terms and leaves the namc of the ship or ships and other particulars to bc dcfincd by subsequent declaration.

(2) The su)sequent declaration or declarations may be made by endorsemenl on the p)licy or in other cuslomary maaner.

(3) Unless the policy otherwise provides, the declamlions must be made in fie order 01-dispatch or shipmcnt. They mus! in the case of goods, compdsc all consignrnents within the tenns of the policy and the value of thc goods or other propety must be honeslly stated, but an omission or eroneous declsration may be rcctified even after loss or arrival, provided the omission or declaralion was made in good faith.

I]

(4) Unless the policy otherwise provides, where a doclaration ofvalue rs not made until aflcr notice of loss or arrival, the policy rnust bc treated as an unvalued policy as regards the subjecl-malter oflhat declaration.

### 31. Cotrstruction of term! in policy.

Subjecr to the provisions of this Act and unless lhe context of d|e policy otherwise requires, rhe terms and expressions mentioned in the Schedule to this Act shall be construed as having the scope and meaning in that Schedule asstgned tothem.

32. Premlum to be arranged.--{ I ) Where an insurance is ellected at a premium to b€ aranged and no aarangement is made, a reasonable premium is payable.

(2) Whcrc an insurance is effected on the terms that an additional premium is to be arranged in a given cvcnt and that event happens but no arrangement is made, dren a leasonable addrtional premium is payable.

### CHAPTER.VII

### DOUBLE INSURANCE

### 33. Double iDsurance.

(1) WherE two or more policies are effected by or on behalf of thc insured on the samc adventure and intcrest or any pan (hereof and the sums insured exceed the indcmnity allowed by this Act, the insured is said to be over-insured by double insurance.

(2) Whcrt t}e insured is orer-insured by double insuEnce,-

(a) the insured, unless the policy otherwise provides, may claim paymen! from the insurers in such order as hc may think fiq

Provided that he is not enhlled lo receive any sun in excess of the indcmnity allowed by this Acr;

(b) wherc the policy under rvhich the insured claims is a ralued policy. the insured must give crcdit as against the valuation for any sum received by him under any other poliry without regard to the actual value ofthe subject matter insured;

(c) wherc the policy under which the iNured claims is an unvalued policy hc shall give credit, as against the full insurable value, for any sum received by him underany other policy; and

(d) \.rhere rhe insured reccivcs any sum in excess of the indemnity allowed by this Act, he is de€med to hold such sum in trust for the insurers, according to thelr right ofcontribution amonS themselves.

## CHAPTER VIII WARRANTIES

### 34. Neture of warranty.

(1) A warranty, in the followinB sections relating to warranties, nleans a promissory \varranty, lhat is to say, a warranty by which the insured underlakes that some pa(icular thing shall or shall not be done or that some condition shall be fulfilled or whereby he affirms or neSal€s the existence ofa particular stale of lacls.

(2) A warranly ma) be exprcss or impled

(3) A warranry, as dcflncd in sub-section (1), is a condition rvhich must be exaclly complied with, whether it be material to the risk or not. If it be no! so complicd \r,ith, then, subject to any express provision iD the policy, the insurer is discharged fiom liability as from the datc of the breach of tvar(rnty, but without prejudice k, atry liabilily incurred by him before that date

(4) Notwithstanding on),thrng to the contrary that pertains to warranties in this Act, ro represenlation made by lhe insured is capable of being converted into a wafianty by means of any provision of Darine insurance conEzct, nor shall anl'such repres€ntalion bc declared to form lhc basis of marine insurance contrirct-

### 35. Whrn breach of worrsnt-y excused.

{ l) Non-compliance with a wananty is ercused when, by reason ofa changc of circu mstances, thc warranty ceases to be applicable lo thc circumslances ofthe contract or Lvhen comPhance with the warranty is reldered unlawful bl'any subsequent law.

(2) A breach ofwarranty may be uaived by the insurer

### 36. Erpress warranty.(1) An express wafianty may be in any form.

ofwords from which tlre intention to warrant is to b€ infefied.

(2) An exprrss *arranty must be included in- or wrinen upon, the policy or must be contnrned in some document incorporated by refercnce into the policy.

(3) An express wa.ranty does not exclude an implied warranty, unless it be inconsistent thcrexith.

### 37. Wrrrrnry oI Deutrality.

<l) Where insumble propeny. whether ship or goods, is expr(ssly warranted neutral, thcrc is an implied condilion that the pmperty shall hav( a neutral character at the commencemenr of the flsk and that so far as the insured can control the marler. its neutral character shall be preserved durinB the riik. ll 'l'HE

(2) Where a ship is expressly warranted "neutral" therc is also an irnplied condition that, so far as the insured can cont.ol the matter, she shall be prop€dy documenled, that is to say, that she shall carry the nocessary papers to establish her neulrality and that she shall not falsiry or suppress her pap€rs or use simulated papers. Il-any loss occu.s through brcach ofthis condition, the insurrr may avoid the contract,

### 38. No implied warr.Dty of nationrlity.

Therc is no implied warranty as to thc nationality of a ship or that her nationality shall not be changed during thc risk.

### 39. Warranty of good safety.

Where the subject-matter insured is lyarranred '*ell" or "in good safeq ' on a panicular day, it is sulficicnt if it b€ safe at any time during that da_'".

### 40. werronq ofserwonhincss of ship.

(1) In a voyage policy there is an implied warranry that at the commencement ofthe voyage the ship shall be seawo(hy for the purpose ofthe padcular adventure insu.ed.

(2) Where thc policy attach€s whilc the ship is in port, there is also an implied warranD that she shall, at the commenc€menl ofthe risk, bc reasonably fit ro encounter the ordinary perils ofthe pon.

(3) Where the policy relales to a voyage which is performed in different stages, during which the ship requires different kinds of or further preparation or equipment, there is an implied warranty that at the commencemenl of each stage the ship is seawonhy in rcspect of such prcparalion or equipmenl for rhe purpos€s ofthat stage.

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

(5) ln a timc policy thcre is no implied warranty that thc ship shall be seaworthy ar any sragc oI the adventure, but where, wilh fie paivily of the assured, the ship is senr to s€a in an unseawo(hy state, the insur€r is not liable for any loss attribulable to unseaworthiness.

### 41. No implied wrrranty that goods sre seeworthy,.

(1) ln a policy on goods or o[her movables there is no implied warranty that the goods or movables are seaworthy.

(2) In a voyagc policy on goods or olier movables there is an implied warranty that at the commencement ofthe voyage lhe shiP is not only seaworth) as a ship. but also that she is reasonably fit to carr)'the goods or other movables lo the destination contemplated by the policy.

3E

### PART

### 42. Warrantl ot l€gality.

l here is an implied warranty that the adventure insured is a lawful one and rhat. so far as the insured can controlthe matter, the adventure slall be carried oul in a lawful manner.

## CHAPTER IX THE VOYAGE

### 43. tmpllcd (otrditior as to commenccmenl of rirk---( l) Where the.

subject-matter is insurel by a voyage policy "at and from" or "from" a pafticular place, it is not necessar/ that the ship should be at that place whcn the contrac[ is concluded, put there rs an implied condition that the adventur€ shall be if commenced within a reasonable tlme and that the advenlure be not so commenced Lhe insurer may avoid the contrsct.

(2) 'Ihe implied condition may be negativ€d by showirg that the delay wos caused by circur slances known l{J the insurer before the confiact was concluded or by showir,g that he waived lhc condition-

### 44. AlterrtioI ofport o, depa rlu re.

Where the place oldepanure is spccified by the policy and the ship, instead ol sailing from that place, sails from any other place thc risk does not attach.

### 45. Ssilitrg lor dillerent dcstinotion.

where the destination is specified in the policy and the ship, insEad of sailing for that dcstination, sails for any olher destinatio the risk does not attach-

### 46. Change of voyege.

{ I ) u'hcrc, afler the commencement of the risk, the destination cf the ship is voluntarily changed from lhe destinalion contemplated by the pclicy. rhere is said to be a change of voyage.

(2) Unless the policy othenvisc provides, where there rs a change of voyaSe, the insurer is Jischarged fronr liubility as from the time of the change, that is !o say, as lrom lhe lime when thc dctcnnination to change it rs manifested and it is immatcrial hal the ship may not have left the course of voyage contemplated by thc p( licy \vhen the loss occurs.

### 47. Dcvialio'r.

(1) Wher€ a ship, without lawful excuse, deviates from the vcyage cont-'rnplated by the policy, rhe insurer is discharged from liabiliry as fronr the tinre ofdeviation a|d it is immaterial that rhe ship may have regained her route befcre aDy loss occurs.

(2) There is i, deviation from rhc voyagc contemplat€d by lh€ policy, -

(a) u,hcrE th,: course of the voyage is specifically designated by the policy anl that course is departed froo; or I

(b) where the coursc ofthe voyage rs not specifically dcsignated by the policy, but thc usua! and cuslomary collrse rs departed from.

(3) Thc intention to deviate is imrnaterial, therc must be a deviation in fact to discharge the insurer from his liabiliq under the contmct.

.

### 48. Sev€ral portj of disch.rgc.<l) Where several ports ofdischarge.

are sp€cified by the policy, the ship may proceed to all or any ofthem but, in the absenc€ bf any usage or sulficient cause ro ihe contrary, she musl proceed 1o them or such of them as she goes to in lhe order desrgnated by lhe policy. Ifshe does not. there is a devialio[.

(2) wher€ the policy is ro -pons of discharge", whhin a given are4 which arc not named, the ship must, in the absence of any usa8e or sumcienl cause to the conEiary! proceed to them oa such of them as she to in thoir Soes 8eo-Sraphical order. Ifshe does not, there is a dcviation.

49. Delsy in voyage.-ln thc case of a voyage policy, the adventure insured must be prosecuted throuShout its course with reasonable dispatch and, if without lawful excus€ it is not so prosecuted, the insurer is dischargcd from habiliry as from the time when lhe delay blcomes un-rellonable.

### 50. Excuse! for d€viatiotr or del&y.

{! ) D€vialion or delay ln prose€uting the voyage contemplated by the policy is excused,-

(a) where authorizld by any sp€cialtem in lhe policy; or

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

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

(d) whcre reasonably necessary for the safery of lhe ship or subject matter insured; or

(e) for the purpose of savinS humal life or aiding a ship in disress where humrn lif€ may be in dalt|ger: or

(f) where reasonably necessary for the purpose of.obtaining medical or surgical aid for any p€rson.on board th€ ship; or

(g) if where caused W orc barrataous cohduct of the master or crew, barratry b€ one oflhe perils insured against.

(2) When the cause excusinS tie deviation or delay ceases to operate, the ship mrrsr resumr her course and prosecute her voya8e with reasonable dispatch.

### CHAPTER.X

### ASSIGNMENT OF POLICY

### 51. Whcn rnd how policy is assignablc.

(1) A marine policy is assignable unless it contains rerms cxpressly prohibitLng assignment It may be assigned either beforc or after loss.

(2) Here a rnarine policy has been assigned so as to pass thc beneucial interest in such polic:,, the assigncc ofthe policy is entitled to sue thereon in his own name and the dr)fendanl is cntitled to make any defensc arising out of the contract which he \\ould have been entitled to make if lhc action had been brought in th€ name of the person by or on behalf of whom the policy was effecEd.

(3) A mari[e policy may be assigned by endorsenrent thereon or in other customary manrrer,

### 52. lnsure(l who has no int€resl cennot,rsign.

Where the insured has parted with or l)st his intcrcst in the subject-matter insurcd and has not, before or at the timc of so doirg. cxpressly or impliedll, a8reed lo assi8n the policy an) rubsequer r assignmenr oflhe polic-'_ is in-opemtivc:

Provided that nothing in this section affects th€ assrgnment of a polic) after loss.

## CHAPTER XI THF, PRf,MIUM

### 53. When premium psy.ble.

Unlcss othenvise agreed, the duty of the insured or his a8cnt to pay the premium and de duty ol_ thc insurer to issue the policy 10 the insrLred or his agent are concunent conditiors and the insurer is not bound to issue the policy until payment has been received.

### 54. Policy effected through broker.

(1) Unless orhenlise a8rced. tvherc a marine poli(y rs ellected on behalfof the insured by a broker. thc broker is dircctly responsrbLe to the insurer for the prcmium and thc insurcr is directlv responsible to the irrsured for thc amount which may be payable in respecr ol losscs or ill respecl cfretumable prcmium.

(2) Unless otherwise agreed, the broker has, as against the assured, a lien upon the policy for the amounl ofthe premium and his charges in respect of effeahng the policy and, where hc has dcalt with the peBon lvho employs him as a principal, he also have a lien on thc policy in respecl of any balance on any insurance account which may be due rc him from such p€Eon, unless whcn lhe debt was incurrcd he had reason to believe thst s'lch person was only an agent.

### 55. f,flect of r€ceipt on policy.

Where a marine policy effected oll behalfofthe insured b], a broker acknowlcd8es the receipt ofthe premium, such acknowledgement is, in lhe absence of fmud, conclusive as trctween the insurer alld the insured but not as between rhe insurer and btoker.

## CHAPTER XII LOSS AND ABANDONMf,NT

### 56. Itrcluded and excluded losses.

(1) Subject ro the provisions of lhis Acl and unless the policy otheru,ise 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 proximatcly causcd by a peril insured againsl.

(2) In panicular,

(a) lhe insurer is not liable for any loss attributable to the will,ul misconduct of the insured but, unless lhe policy orherwise provides, he is liable for any loss proximately caused by a peril insured against even though lhe loss would not have happened bul for the misconduct or ncgligence ofthe master or crew;

(b) unless the polic),otherwise provides, the insurer on ship or goods is not liable for any loss proximarely caused by delay, although the delay be caused by a peril insur€d against; or

(c) unless the policy olherwise providcs, the insurer is not liablc tbr ordinary wear and tear, ordinary leakage and breakage, inhercnt vice or nature of thc subjeclnrarter insured or flor any loss proximately caused by rats or vennin or lor any injury to machinery not proximately caused by maritime perils.

### 57. Perrirl and totsl loss.

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

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

(3) Unlcss a diffcrcnl in(cnlron appcars Iiom thc teflns ofthc policy, an insumnce against t')tal loss includes a co[structive as well as an actua] total loss.

(4) Wherc tte insured brin8s an action tbr a tolal loss and the evidence proves only a panial l)ss, he may, unless the policy otherwise provides, recover for a partial ]oss.

(5) where goods reach their destination in specic but by reason of if oblileration ofrnarks cr otherwise they are incapable of identification, the loss, any, is partial and not otal.

### 58. Actu{l totrl loss.

(1) Where the subject-matlcr insured is deslroyed or so damalled as to cease to b€ a thing of thc kind insured or shcrc lhe insured ir inetrie! bly deprived thcrcoll thcrc is an acrual total loss.

(2) ln the case ofan actual tolal loss nolice of abandonment n€ed not be given.

### 59. Missitrg ship.

Where the ship concemed in the adventurE is missing and after th( lapse of a rcasonable lime no news of her has been received an,rctual total loss may be presumed.

### 60. Effect ol trrrslhipment, ctc,.

Where, by a p€ril insured aSainst, the voyage is interrupted et any inlcrmediatc port or place, under such circumstances as apart from any special stipulation in the conuact of affreightment, tojusriy the master in landing and re-shipping the goods or other movables or in transshipping thcm and sending them on 1() thcir destination, the liability ofthe insurer continues, norwithsranding the landing or transshipment.

### 61. Cotrstrurtivc totol loss dcflned,.

(1) Subject to any express provision in the polic). there is a constnlctive total Ioss where the suqiect-matter insured is reasonably abandoned on accounl of its actual total loss appearing to be unavoidable or bq:ause it could nol bc prcscrved from thc aclual total loss without an expenditurc which would excecd its valuc when the expenditure had been incurred,

(2) ln particular, there is a consrructive rotal loss,--

(a) where the insured is deprived ofthe possession ofhis ship or goods by a per I insured against and it is unlilely that he can recover the ship or goods, as thc casc may be, or the cost of recovering the ship or good:r, as rhc casc may be, would exceed their value when recoveaeJ:or ll P^Rr l l.lE CAZETTE oF PAK|STAN, EXTRA-, FEB 7,2018 4l

(b) in the case ofdamage to a ship, where she is so damaged by a peril insurEd against that the cost of repairing thc damate would exceed thc value ofthe ship when repaired; or

(c) in the cas€ of damage to goods, where the cost of repairing lhe damage and fonvarding the goods to the destination would cxceed their valuc on arrival.

(1) In estimating the cosl of repairs, no deduction shall b€ made in respect of gencml average contributions to those repairs payablc by other rnterests, but accounr shall be taken of the expense of future salvage opemtions and ofany future general average contributions lo which the ship would be liable ifrepaired.

62. ElIect of constructiye total losc.-Where there is a conshuctive total loss the insured may either treat the loss as a paftial loss or abandon the ifit subject-mafter insured to the insurer and tseat the loss as were an aclual tolal Ioss.

### 63. Notice ol abondorment,.

(1) Subject to the provisions of (his scction, whcrc lhe insured elecls to abandon the subjecl-maner insured to the insurer he shall notice ofthe abandonment. Ifhe fails to do so, the loss can Bive only be Eeated as a partial loss.

(2) Notice of abandonment may be given in writing or by [ord of moulh or partly in vritrng and partly by word of mouth and may be given in rerms which indicate the intention of the insured to abandon his insurEd interest in lhc subject-malter irrsured un-conditiona,ly to dre insurer

(3) Notice of abandonmeot must be given with r€asonable diligence after the recerpt ofreliable information ofthe loss, br whcrc the information is of a.doubtful character lhe insured is entitled to a reasoflable tim€ to make lnqurry,

(4) Where notice of abandonment is properly given, the rights of thc insured shall not bo prejudiced by the fact that the insurer refuses to accept the abandonmcnl,

(5) l'hc acccptance of an abardonment ma), be cither express or implied from the conduct of the insurer. The merE silence of the insurer after notice is not an acceptance.

(6) Where a noticc o[ abandonment is accepted the abandonment is inevocable. The acceptance of the notice shall conclusively admit liability for the loss and the sulTiciencr- ofthe notice- 44 THE GAZETIE OF PAKIS'IAN, EXTRA,, FEB, ?. 2OI8 I

### IPART

(7) Notice o'' abandonment is un'necessary wherc. at the time when the insured receives i,rformalion of thc loss, thcrc would be no possrbility of benefit to the insurer il,rotice were given to him.

(8) Notice ol abandonment may bc waivcd by thc insurer

(9) where ar) insurer has reinsured his risk, nolicc ol abandonment need not be tiven by h 'n.

### 64. l).

ElIect of Abondormelt,--{ Where there is a valid abandonmenL the insurer is entitled to takc over lhe intcrcst of lhc insured in what€ver may .emain ofthe subject-nratter insured e d all proprietary righLs incidenral dler€to.

(2) Upon thc abandonment of a ship, rhe insurer thereof is entitled to (f any frEight in cou6e b€in8 eamed and which is eamed by her subsequenl to the c{sualty ca sing lhe loss, lcss thc cxpenses of earning it incurred after tie casuelty and, lvhere a shrp is carryinS the owner's 8oods, the insuer shall b€ entided to a reasonabl,: remuneration for the caniage of lhem subsequent lo the casuahy causing lhe lojs.

### CTIAPTER-XIII

PARTIAI- LOSSEI INCLUDING SAI,VAGE, GENf,RAL AVERAGf,

### AND PARTICULAR CHARGES

### 65. Prrticulxr avcragr loss.

(1) A pa(icular average loss is a partial loss ofthe srrbject-malter irsured caused by a peril insured aSainst and which is not a general average loss.

(2) Expenser. incurred by or on behalf ofthc insured for the safety or pneservation of the !ubject-matter i sured, other lhan gencral av€rage and salvage charges, arc cr lled particular chargos. I)arlicular charges are not included in particular average.

### 66. Salvage chrrges.

(1) Subject to any express provision in the policy, salvage chargts incurred in preventing a loss by perils insured against may be recovcred as a loss by thosc pcrils.

(2) For the purpose of this sectron, thc cxprcssiut "salvage charges" means the charges rec)verable under mantime law by a salvor iDdependently of contract. Thcy do not include the expenses of services in the nature of salvagc rendered by the insu(d or his agents or any person employed for hire by them for the purpose of avcrling a peril insured against. Such expenses. where properly incurred, ma) be recovcred as paflicular charges or as a general avemge loss according to the c rcunstanccs under which they werc incuned.

THECAZETIEOFPAKISTAN,EXTRA,,FEB, 7, 2OI8 45

67. Gen€rel rverage loss.-{ l) A general average loss is a loss caused by or directly consequentisl on a general avemge act. lt includes a general average expenditure as well as a average sacrifice. Seneral

(2) There is a general avemge acl where any extraordinary secrifice or expenditure is volunlarily and rcasonably made or incurrcd in lhe lime of peril for the purpose of preserving the propeny impcriled in the common adventure.

(1) Where rherc is a general average loss, lhe pany on whom it falls is entirled, subject to lhc condilions inrposed by marilime law, to a rauble conlribution from the other parties inlerested and such contribulion is called a general avemEe contribution

(4) Subjcct to any exprcss provision in the policy, where the insured has incurrcd a geneml avcmgc exp€nditurc he may recover from lhe insurer in respect of the proponion of the loss which falls upon him and in the case ofa general average sacrifice he may recover from the insurer in rcspect ofthe whole loss witfioul havinS enforced his ri8hl of contribulion from the other panies liable to contribute.

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

(6) ln the absence of express stipulation, the insurer is not liable for any general avemge loss or conlribution where the loss was not incurred for the purpose of avoiding or in conneclion wilh the avoidance of a p€ril insured against

(7) Where ship, frei8ht and cargo or any two of those intercsts are owned by the same assured, the liability of the insuror in respect of general average losses or contributions is to be determined as if those subjects were owned by different persons.

### CIIAPTER.XIV

### MEASURE OF INDEMNITY

### 68. Ertetrt of liability of lnsurcr for loss.

< l) 'I he sum, which the insured can recover in respect of a loss on a policy by which he is insur€d, in the case ofan unvalued policy to the full extent oflhe insurablo value or in the c&se ofa valued policy lo the full extcnt ofthc valuc fixcd by the policy is called the measure of indemniw.

(2) where there is a loss recoverable undcr thc policy, the insurer or each insurer if there be more than one is liable for such proportion of rhe measure of indemnity as the amount ol his subscflption bears to the value flxed by the polcy in the crse of a valued policy or to the insurable value rn the case of an unvalued policy.

### 69. Totrl lo$.

(1) Subject to the provisions ofthis Act and to any express provision in I re policy, where lhere is a iolnl loss of the subject-matter insured,

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

(b) ifthe po icy be an unvalued policy, the measure of indemnily is the insumbk, valuc ofthe subjccGmatlcr insured.

### 70. Prrtirl los! of ship.

Where a ship is damaged but not totally lost the measure of indemniry, subject lo any express provision in the policy. is as follows. nanrely:-

(a) Where tre ship has been repaired. the insur€d is entitled lo the reasonatle cost of lhe rcparrs, lcss lhc customary dcductions, but not excc)ding the sum insurcd in rcspect ofany one casualty:

(b) wherc lhe ship has been only parlially rcpaircd, the insured is entitled o lhe rcasonablc cost ol such repairs. computed as above and also lo be indcmnificd lbr the reasonable depreciation, rf any, arising liom the unrepaired damage,

Provided that the aggregate amount shall not exceed the cost of repairing the whole damage computed as abovc: or

(c) where tte ship has not becn repaired and has not been sold in her damage( statc during thc risk. thc insured rs entitled to be indemniied for the re&sonable depreciation arisirg from the unrepatrjd damage, but not exceeding the reasonable cosl of repairinllsuch damage colnputed as abovc.

### 71. Partial loss of freighl.

Subiect to any exprcss provision in lhe policy, where there is a parlial loss of freighl lhc mcasure o[ indemnity is such proportion of thc sum tixed by lhc policy in thc casc ol'a valucd policy or ofthe insurable value in the aase ofan unvalued policy, as the proponion of freight lost by the insured bears to the whole freight at the risk of the,nsured under the policy.

### 72. Prrtial lo$3 of goods, merchardise etc.

{ l) Where there is a partial loss ofgoods, nerchandisc or other movables, the measure of indemnity, subject to ony express pmvision in the policy, is as follows, namelv:- I]

(a) where pan ofrhe goods, merchandise or othcr movablcs insured by a valued policy is totally lost, the measure of indemnity is such proponion of the sum fixed by the policy as the insurable value of the parl lost bears to tho insurable value ofthe whole asceftained as in the case ofan unvalued policy;

(b) where pan oflhe merchandisc or other movables insured by Boods, an unvalued policy is tolally lost the measure of indetnnity is the insumble lalue of rhc part lost ascerlained as in the case of tolal loss; aDd

(c) where dre whole or any pan of rhe goods or merchandise insured has b€en delivered as damaScd at its destinalion, the measure of indemnity is such proportion ol the sum fixcd by the policy in the case of a valued policy or of the insurable value in the case of an unvalued policy, as tho diffcrcncc bctween the gross sound and darnaged values at the place ol arrival trears to the gross sound value.

(2) For the purposes of this section, the expression "gross value" means the wholesale price or, ifthere be no such price, the estimated value wirh, in either case, freight, landing charges and duty paid beforehand

Provided that in the cas€ of goods or mcrchandise cuslomarily sold in bond the bonded price is deemed to be thc gross vrlue and "gross proceeds" means the actual price obtain€d at a sale, where all charSes on sale are paid by the sellers.

### 73. Apportionment of vrlurtion.

<l) Where different species of properry are insured under a single valuation, thc valuation must b€ apporlioned over the different species in proportion to their respective insurable values, as in the case ofan unvalued policy,'lhe rnsured value ofany pan of a species is such propoflion of thc lotal insurcd value of thc samc as the insurable value of the part bears lo the insurablc value ol thc wholc, asca(ained in bolh 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 ofthe valuation may be made over the net arrived sound values ofthe different species, qualities or descriptions ofgoods.

### 74. General ryemge conlributions {nd salvrge charge!.

(1) Subject to any e)qress provision in the policy, where the insured has paid or is liable for any general averagc contribulion, the measur€ of indemnity is the full amount of such contribution, if the subject-matter liable to contribution is insured for ils full contributory value but rf such subject'rnstter b€ not insured for ils full conlributory value or if only pan of il be insured, the indemliry payable by the insurer nrust be reduced in proportion to lhe under insurance and 4t where there has bee,r a particular averaSe loss which constitutes a deduction from the contributory value and for which the insurer is liable that amouDt must be deducted from the insured value in order to ascertain what the insurcr is liable to contribute.

(2) where rhe insurer is liablc for salvage charges the exlenl of his Iiability must be determined on the like principle.

### 75. Lirbilit,c! to third parti€s.

Where the insured has effected an insurance in express erms against any liability to a third party, thc measure of irdemnity, subject lo any express provision in the policy, rs the anrount paid or payable by him to such third part-v in r€spcct ot such Iiabiliry.

### 76. General provisions os to metsune of indemnity.

(1) Where there has been a loss ln respect of any subject-matter not expressly provrded for in the foregoing provisions of this Act, thc mcasu.e of indemnir) shall be asoerlained as neirly as may be in accordance with those provisions iD so far as applicable to the partirular case.

(2) NothinB in rhe provisions of this Act relating to the measure of indemnity shall alfecr the rules and provisions rela ng to double insumnce or prohibit the insurcr from disproving interesl wholly or in part or frorn showing thar at the time of thj loss the whole or any pa( of the subject-matter insured was not at risk under Ihe policy.

### 77. Particular rverage w|rrsnties.(1) Where lhe subjecr-hatter.

insured is *arranted lree from particular avcmge, the insured cannot recover for a loss ofpart, olher than a loss incurred by a general averaSe saorifice. unless the ii contract conlained r:r (he policy be apponionable blrt. the contract b€ apportionable, the ins rrcd may recover for a total loss ofany appoflro,uble part.

(2) WherE tle subject-malter insurgd is waffanted free from panicular average, eifier wholl:/ or under a certain percentag€, the insurcr is nevertheless Iiable for salvage charges and for particular clarges and other cxpcnses properly incurred puBuant to the provisions of thc suing aiid labouring clause in order to ave( a loss insured aeainst.

(3) Unless thc policy otherwise provides, where the subjecr-matter is warranted free fiorn l)arlicular av€rage under a specified pcrcontage, a geneml average loss canDot be added to a particular averag€ loss to mske up the specified percenuge.

(4) For the purpose of ascerlaining whether the spccified percenrage has treen reached, rcllard shall be had only lo the actual loss suffered by the subject-matter insurec. Particular charges and the expenses ol and incidental to ascertaining and proving the loss must be cxcluded.

### 78. Successivc losses.

{ l) Unless the policy otherwisc provides and subject to the provisions of this Act, the insurcr is liablc lbr successive ]osses even thouSh the total amounl ofsuch losses may excccd the sum insured.

(2) Where under rhe same policy, a padal loss, which has not been repaired or otherwise made good, is followed by a tolal loss, the insured can only recover in respect ofthe tolal loss-

Provided that norhinS in this s€ction shall aflbcl rhe liability of lhe insurcr under the suing and labouring clause

### 79. Suing and labouring clause.

{ l) Where the policy conlains a suing and labouring clause, the engagement thereby entcrcd into is deemed to be supplemenlary to the contract of insurance and lhe insured may recover from the insurer ar:y expenses properly incuned pursuant to lhe clause, notwithstanding that the insu.er may have paid for a lotal loss or rhat the subject-mafler may have been warranled free fiom particula.r average, either wholly or undcr a certain percentage.

(2) Ceneral average losscs and contributions and salvagc charges, as dcfincd by this Acl- are rot recoverable under the suing and labouring clause.

(i) Dxpenses incurred lbr lhe purpose of averting or diminishing any loss not covercd by the policy are not recovcrable under thc suing and labouring clause.

(4) lt is the duty ofthe insured and hi5 agents, in all cases, to take such mcasures as may be reasonable for the purpose ofaverting or mmrmrsing a loss.

## CHAPTER XV RIGHTS OF INSURER ON PAYMENT

t0. Right of subrcgation.-(1) Where the insurcr pays for a total lossr either of the whole or, in the case of goods of any apportionable parq of the subjccr-marcr insured, he thereupon becomc cntitled to takc over the interest of thc insured in whatever may remain of the subJecGmatter so paid for and he is thereby subrogated to all the rights and remedics ofthe insured in and in resp€ct oI that subject-matter as from the time ofthe cosualty causing the loss.

(2) Subject to sub-section (1), where the insurer psys for a parial loss, he acquires no title to the subject-matter insurcd or such part of it as may r€main, but he is thcrcupon subroSated Io all rights and rcmedies of the insured in aDd in respect ofthe subject-matter insured as from the rime ofthe casualty causing the loss, in so far as the insured has been indemnified, according to this Act, by such payment for thc loss.

### 81. Right ot cootributtotr.

{ l) whers the insured is over-insured by doubl€ insurance, each insurer is bound. as betwe€n himself and the other insurers. to contribuk' rarably ro the toss rn proportion to thc amounl for which he is liable undcr his r)ontract.

(2) If any insurer pays more than his proportior of lhe loss, he is entitled to maintain an action for contribution against the other insurers and is cntitled to dre like renredi€s as a su.ely who has paid more than his proportron of the debt.

### 82. ElIect of undar iDlura[ce.

Wherc thc insured is insured for an amount less than the insurable value or, in the case of a valLred policy, for an arnount l€ss than the policy valuation, he is deemed to be his olvn insurcr in respect of the un-insured balance.

### CHAPTER.XVI

Rf,TI]RN OF PR.EMIUM

83. Enforcemcnt of rcturn.-Where the premium or a proponionate pad thereofis, by this Act, declared to bc retumable,-

(a) if il alreacy paid, may be recoyered by the insured fiom lhe insurer;,rnd

(b) ifunpaic, il may be retained by the insurcd or his a8ent.

### 84. R€tum by rgre€mcnt.

Where the policy contains a stipulation for the retum ofthe premium or a proporlionate pafi thereofon thc happening of a certain evenl and thit event happens, thc premium or, as the case may be, the proportionate part thereof. is drereupon rcturnable to the assured.

### 85. Return lbr failure of consideration.i I ) where the consideration.

for the payment of tle premium totall) fails and there has becn no fraud or illegality on thc part of the insured or his aSents, the premium is thereupon retumable to thc assur,)d,

(2) Where thc considemtion for the payment of the premium is apponionable and th(:rc is a total failure of any apportionable part of the considemtion, a proportionate part ofthe premium is, under the like conditions, thereupon retumable k, the assured.

(3) lar,-ln particr

(a) where th,: policy is void or is avoided by the insurer as from the commen(ement of thc risk, the premium is returnable, provided PARI.I] that there has been no fraud or illegality on the part ofthe assurcd, bur if the risk is not apportionable snd has once attached, the premium is not retumablc;

(b) wherc lhe subjeclmatter insured or part thereof has never been imperiled, the premium or, as the case may be, a proportionate parl thereof- rs retumabl€'

Provid€d that whcre the subject-matter has bccn insured "lost or not losl" and has arrived in safety at lhe rime \xhen the corlracr is concluded, the premium is not returnable unless, at such ti le, the insurer knew ofthe safe anival;

(c) where thc insured has no insurable interest throughout the cunency ofthe risk. the premiurn is retumable, provided thal this provision do€s nol apply to a policy effected by way ofSaminS or wagerinB;

(d) where the insured has a defeasible interest which is tenninated during the curency ofthe risk, the premiurn is not retumablq and

(c) where the insured has over-insured under an unvalued policy, a proportionate part ofthc premium is retumable.

(4) Subject lo the foregoin8 provisions, ryhere thc insured has over-insured by double insurance. a proponionale paft of the several premiums is retumable: if

Provided that, the policies are efleclcd ar differenl times and any earlier policy has at any time bome the entire risk or ifa claim has been paid on the policy in respect ofthe full sum insured thereby, no premium is retumable in respect of that policy and when thc double insurance is effected knowingly by the insurcd no premium is retumable.

## CHAPTER XVII MUTUAL INSURANCD

### 86. Modifioliotr of lhfu Acl itr crlc of muturl insurence.

(1) Where lwo or more persons mutually agree to insure each other against marinc losses lhere is said to be a mutual insurance.

(2) The provisions of this Act relating to the premium do not apply to mufual insurance, but a or such other arran8ement as may be agreed Euarantee upon may be substituted for the premium.

5?

(3) The pro\ isions ofthis Act, in so far as they,nay be modified by the agreement ofthe parti )s, may in the case of mulua1 insurance or coopcratives, be modified by the term! of the policies issued by the association or by the rules and re8ulations olthc $sociation.

(4) Subject lo the exceplions mentioned in this section, the provisions of this Act apply to a rnutual nrsurarce as well is a cooperative insurance scheme.

(5) If an enrity registered in Pakistan eDters into a mutual insurance arrangement with othrir local entities, their murual insurance shall be rcgistered as per the prevailing ir surance laws

## CHAPTER XVIII SUPPLEMENTAL

### 87. Ratificaiio[ by assurcd.

where a contract of marine insnrance is in good faith effect€d by one person on behalf f another, thc p€rson on whose o behalfit is etTected m,ry ratii/ the contract even after he is aware of a loss

### 88. Implicd obligations varied by agreement or usage.

{ l) Where lt any right, d or liatility wo[ld arise under a contract ofmarine insuance by implication of la*,, it rnay bc negativei or varied by cxpress agrcement or by usage, ifthe usage be ruch as to bind both pa(ies to the contract.

(2) The pror rsioDs of this secoon extend t(r aDy right, duty or liabililv declared by this Act $hich may he 1a\\'lully modificd by agreenrent.

89. Reason, ble time, ctc., a question of fact,-Where by this Act any t) rcference is made reasonable lime, reasonable prcmium or reasonable diligence, thc questior what is rcasonable is a question offact.

90. Covering notc as €vidence.-Where there is a duly issued policy, reference rnay be rnat e, as herelofore, 1{r the slip or covering note in any legal proceeding.

### 91. Cerl.iin provisions to override the lraNfer of Proper{v Act 1882.

Nothing in ckuse (c) of section 6 o[ the Transfer of Property Act, 1882

(lV of I 882). shall aff:ct thc provisions of sections I 6, 5 I, 52 and 80.

### 92. Repeal.

{1) Sections ll0A and I35A olthe Transfer of Prope(y Acl. 1882 (lV of lE82 t, are herehy repcalcd.

I] PART THE GAZETI'T OT PAKISTAN, EXTRA FEB, ? 20 IE 53

(2) Ihe rules ofthe common law including the law m€rchant, save in so far as they are not inconsistent with the express provisrons of this Act, shall continue to apply to contracts ofmarine insurance.

### 93. Power to issue directivd, circulars, guidelines.

The Minister rn-Char8e shall have thc power to issue such directives, codes, guidelines, circulars or notifications &s are necessa4/ to carry out the purposes of this Act.

### 94. Power to Erke Rules.

The FederAl Covemment may, by notification in the olficial Cazcltc, Elake such rules [s m6y be necessary to csrry out the purpos€s ofthis Act.

### 95. (o l).

Pow€r make R€Bulotions.--{ The Commission may, by notification in the officral Cazc(e, make such regulations as may be necessary to carry out the purposes of lhis Acl.

Provided that the po$'er to make regulations confened by this clause shall be subject to the condition of previous publicatron and before makin8 any re8ulations the draft thereof shall be published in the manner considered most appropriate by the Commission for eliciting pubhc opinion thereon \vithin a period ofnot less than thirty days from the date ofpublication.

(2) Any reSulation made under sub-section (1) may provide that a conlravention thereof shall be punishable with a penalty which may extend to fivc million rupees and, where lhe conhavention is a continuing one, with a further penalty which may cxtcnd to one hundred thousand rupees for every day after the first during which such contravention continues.

96. Savings.-Marine policies that are already in force shall continue to b€ govemed under the prevailing law tilltheir expiry.

SC}iEDULE

(ree section 3l)

Rules for construction of policy

The Jollo*ing are the rules relerted to b! this Ac( for the consiuclion of a policr-, i)here the conletldoes not othensise reqwre, nomely:-l. Where thc subject-matter is insured "lost or not lost" and the loss has occurred before the contract is concluded, the risk attaches, unless et such time the insured was aware ofthe loss and the insurerwas not.

2. Where the subject-matter is insured "fiom" a particular place, the risk shall nol attach untillhe ship stans on the voyage insured.

54 THI GAZETI'E OF PAKISI'AN, I]XTRA. FEB, ?, 2OI8 PART I

3. In the followinS circumstances,-

(a) where a ship is insurcd "at and from" a particular place and she is at that place in good safety whon the contract is concluded; the risk attaches irnmediately.

(b) if she be iot at that place when the contract is concluded, the risk attaches as soon as she arrives there in good safe(y and, unless the policy otherwise ptuvides, il is immaterial thst sh€ is covered by another B)liry for a specified time afler arrival.

(c) wherc chrrtered freight is insured "at and l-mm" a particular place and the ship is at that placc in ssfely wher th€ contract is Bood concluded the risk attaches immediately. lf she be not there when the contract is concluded, lhe risk attaches as soon as she arrives there in t )od safety.

(d) where ft(iight, other than chartered freight, is payable without specral c(nditions and is insur€d "at and frorn" a particular place, the risk altaches pro raro as lhe goods or merchandise are shipped,

Provided that if there be cargo in readiness which belonSs to the ship ownor or which some other per(on has contracted with him to ship, the isk attaches as soon as tl,i ship is rcady to receive such cargo.

4. where goods or olher movables are insured "from $e 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,ransit f()m shore to ship.

5. where thri risk on or other movables continues until they are Soods "safely landed' lhey rnust be landed in the customary manner and wilhin a reasonable time after arrival at rhe pon ofdischargc and if they are not so Ianded the risk cease

6. ln the ab:.ence of any furthcr license or usagc, thc liberty to touch and stay 'at any port or place whdtsoevcr" does not authorize the ship to depaat from the course of her voyage tiom rhe port of departure to thc port of destination.

7. The cxpression "pe.ils of the seas" refers only to fortuitous accidents br casuallies of thc seas. lt does not include the ordinarv action of the

E. The expression "pirates" includes passcngcrs *,ho mutiny and rioters who altack lhe slip fiom the shorc

## PART I ] THECAZETTEOFPAKISTAN,EXTRA,,FEB. 7, 2OI8 55

9. The expression '1hieves" does not cover clandestine theft or a theft committed anyone ofthe ship's company. wheth€r crew or pass€ngers. b-,_

10. The expressioo "arrests, clc, ofkings, princes and people" refers to political or executive acts and does not include a loss caused by riot or by ordinary process. Judicial ll. barratry" The expression includes every wrongful act willfully committcd by the master or crew to the prejudice of thc owner or, as the aase may be, the charterer.

12. The expression "all other perils" includes only perils similar in kind to the pcrils specifically mentioned in the policy.

13. The expression "avem8e unless geneml" means a partial loss ofthe subject-matter insured other than a general average loss 6nd does not include "particular charges".

14. wherc the ship has stranded, the insurer is liable for the cxpected loss€s althouSh the loss is not attribulablc to the strarding, provided rhal when the stranding takes place the risk has attached and, ifthe 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 ofllcen and crew and, in the case of vessels engaged in a special trade, the ordinEry fittings requisilc for the trade and also, in the case ofa steamship, the machinery, boilers and coals and engine stores, if owned by the

16. The term "frcight" includes the profit derivable by a shipowner from the amploymenl ofhis ship to carry his own goods or moveables, as well as freight payable by athird party, but does not include passage money.

17. The term "goods" means goods in the nalure of merchandise and does not include personal effects or provisions and storcs for use on board.

18. tn the absence of any usaSe to the contmry, deck cargo and living of animals nrust be insured specificall) and not under the general denomination goods.

### TAHIR HUSSAIN.

Secretary-

PRIMED BYTHE MAMGER. PRIMNNG CORPOFiATION OF PAXISTAN PRESS, ISLAMABAD, PIELISHEO BY THE DEPUTY CONTROLLER, STAT1O ERY ANO FORMS, UNIVERSITY ROAD, XAIiAC}II,

## Accuracy notice

This digital version of the Marine Insurance Act, 2018 is provided as-is. Although reasonable efforts have been made to ensure accuracy and avoid error, no warranty is made as to its accuracy or completeness. Consult the official sources or Gazette when legal accuracy is material.