The Marine Insurance Act, 1963
Administered Ministry: Ministry of Finance / Department of Financial Services
Section
Section 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 is deemed to be his own insurer in respect of the uninsured balance.
Section 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 the insurer, and,
(b) if unpaid, it may be retained by the assured or his agent.
(a) if already paid, it may be recovered by the assured from the insurer, and,
(b) if unpaid, it may be retained by the assured or his agent.
Section 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 happens, the premium, or, as the case may be, the proportionate part thereof, is thereupon returnable to the assured.
Section 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, the premium is thereupon returnable to the assured.
(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, thereupon 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 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 inperilled 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 the rule does not apply to a policy effected by way of 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.
(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, thereupon 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 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 inperilled 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 the rule does not apply to a policy effected by way of 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.
Section 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 contract even after he is aware of a loss.
Section 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 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.
(2) The provisions of this section extend to any right, duty, or liability declared by this Act which may be lawfully modified by agreement.
Section 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.
Section 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.
Section 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 insurance relating to any class of ships exclusively used in inland navigation, be subject to such conditions, exceptions and modifications as it may specify in the notification.
Section 90 Certain provisions to override Transfer of Property Act, 1882.
Nothing in clause (e) of section 6 of the Transfer of Property Act, 1882 (4 of 1882), shall affect the provisions of sections 17, 52, 53 and 79.
Section 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 as they are inconsistent with the express provisions of this Act, shall continue to apply to contracts of marine insurance.
Section 92 Repealed.
[Repeals.] Rep. by the Repealing and Amending Act, 1974 (56 of 1978), s. 2 and the First Schedule (w.e.f. 20-12-1974).