Reading marine insurance contracts: determining the scope of cover

Bennett, H.N.

Abstract

Marine insurance-exclusions-exceptions-causation-delay-slaves The scope of cover under marine insurance policies is typically delineated by a combination of express insuring clauses that identify risks that are covered and an appreciable number of limitations on cover either express in the policy or implied by virtue of the Marine Insurance Act 1906. The standard London market marine insurance forms (known as 'Institute clauses') contain a significant number of express limitations, all of which are labelled 'exclusions'. This article discusses the different types of clause that combine to delineate the scope of cover, with particular reference to the most commonly encountered Institute clauses for the insuring of ships or cargoes. In so doing, it demonstrates that policy limitations exhibit a diversity of characterisation: some deny cover otherwise granted by the insuring clauses and may properly be termed 'exclusions'; others serve not to reduce the scope of cover granted but rather to clarify the proper understanding of the insuring clauses and may be termed 'exceptions'; and a third group should be read as integral elements of the insuring clauses. The implied limitations stated in the Marine Insurance Act, s 55(2) constitute exceptions, at least as originally conceived, although changes in insurance law's doctrine of proximate cause may require the limitation in respect of losses proximately caused by delay, which is considered in detail, to be re-conceptualised as an exclusion. A limitation's correct characterisation impacts on whether the policy responds to a loss, either at all or in cases of concurrent proximate causes, and upon the onus of proof borne by an insured claiming under the policy.

Citation

Bennett, H. (2019). Reading marine insurance contracts: determining the scope of cover. Asia Pacific Law Review, 27(2), 239-269. https://doi.org/10.1080/10192557.2019.1701227

• Journal Article Type: Article
• Acceptance Date: Sep 10, 2019
• Online Publication Date: Mar 3, 2020
• Publication Date: 2019
• Deposit Date: Sep 9, 2019
• Publicly Available Date: Jan 1, 2021
• Journal: Asia Pacific Law Review
• Print ISSN: 1019-2557
• Electronic ISSN: 1875-8444
• Publisher: Taylor & Francis
• Peer Reviewed: Peer Reviewed
• Volume: 27
• Issue: 2
• Pages: 239-269
• DOI: https://doi.org/10.1080/10192557.2019.1701227
• Public URL: https://nottingham-repository.worktribe.com/output/2592803
• Publisher URL: https://www.tandfonline.com/doi/full/10.1080/10192557.2019.1701227