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a state of affairs, as render it unjust for him to assert a right to which he would be otherwise entitled. Estoppel is an equitable doctrine, and is enforced to prevent one person taking an unfair advantage of another who has relied upon his words or conduct." A waiver does not need a new consideration to support it.23 Parol evidence can never be introduced to show a waiver of any provision of a subsequently issued policy.

23 Dilleber vs. Ins. Co., 76 N. Y., 567.

"Viele vs. Germania Ins. Co., 26 Iowa, 9.

CHAPTER III.

MARINE INSURANCE.

SECTION 19. IN GENERAL.

Marine insurance, as has already been stated, was the earliest, and for a considerable period the only form of insurance. The contract of marine insurance is strictly one of indemnity

SECTION 20. INSURABLE INTEREST.

The insurer must have an insurable interest in the property which he insures.' Any person has an insurable interest in any property, who would suffer loss by its destruction."

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In the case of Lucena vs. Crawford,' it was said: "A man is interested in a thing to whom advantage may arise, or prejudice happen, from the circumstances which may attend it. Interest does not necessarily imply a right to the whole, or a part of a thing, nor necessarily and exclusively that which may be the subject of privation, but the having some relation to, or concern in the subject of the insurance, which relation or concern by the happening of the perils insured against may be so affected as to produce a damage, detriment, or prejudice to the person insuring; and where a man is so circumstanced with respect to matters exposed to certain risks or dangers, as to have a moral certainty of advantage or benefit, but for those risks or dangers, he may be said to be 'Sawyer vs. Mayhew, 51 Me., 398;

Boston Ins. Co. vs. New York
Ins. Co., 174 Mass., 229; 54 N.
E., 543; Buchanan vs. Ocean
Ins. Co., 6 Cow. Cr., 318.

Vol. IX.-15

• International Mar. Ins. Co. vs. Winsmore, 124 Pa. St., 61; 16 Atl., 516; Moran vs. Uzielli, 2 K. B., 555; 10 Com. Cas., 203. 3 B. & P., 75; 6 Rev. Rep., 623.

interested in the safety of the thing. To be interested in the preservation of a thing, is to be so circumstanced with respect to it as to have benefit from its existence, prejudice from its destruction. The property of a thing and the interest derivable from it may be very different. Of the first the price is generally the measure, but by interest in a thing every benefit and advantage arising out of or depending on such thing may be considered as being comprehended."

It was formerly held that the interest of insurer must exist at the time the contract of insurance was made,' but under the modern rule it is sufficient if there is an insurable loss at the time of the loss."

SECTION 21. FORMS OF MARINE INSURANCE POLICIES.

Marine insurance policies are classified as interest or wager policies, valued or open, and time or voyage. An interest policy is one where the insurer has a substantial interest in the property insured.

A wager policy is one by the terms of which the question of interest in the insurer is waived. Such a contract was good under the common law, but this has been changed by statutes. The mere waiving of the question of interest, however, will not make a contract a wager one in this country, when the insurer actually has an insurable interest in the policy.

9

A valued policy is one where the value of the property is agreed upon in the contract; an open policy is one where the value of the subject-matter is left open to be determined after loss.10

Sadlers Co. vs. Babcock, 2 Atl.,
554; 26 Eng. Reprint, 733.
Boston Ins. Co. vs. Globe F. Ins.
Co., 174 Mass., 229; 54 N. E.
Rep., 543; Mannheim Ins. Co.
vs. Hollander, 112 Fed., 549.
Sadlers Co. vs. Babcock, 2 Q.
B., 724.

'See Statutes of Various States.

Amory vs. Gilman, 2 Mass., 1. • Williams VS. Continental Ins. Co., 24 Fed., 767.

10 Ogden vs. Columbia Ins. Co., 10 Johns (N. Y.), 273.

A time policy is one which is to continue for a certain period; a voyage policy is one which is to continue through a certain voyage.

SECTION 22. RISKS AND LOSSES COVERED.

Underwriters are liable for only such losses as are occasioned by some peril mentioned in the policy.

"It is only losses and damages of an extraordinary character that are covered," and not consequences which in the ordinary course of events must occur, or are to be expected.12 But if the damage arise from a peril insured against, it matters not whether the force of that peril be great or small,13 providing it is sufficient to damage a seaworthy vessel." Damage due to the ordinary wear and tear upon the fabrics of a vessel is not insured against." 15 16

SECTION 23. GENERAL AVERAGE.

General average is a principle of the law of marine insurance, not found in other branches of insurance, by which where a ship or cargo is sacrificed for the general good, the owners of the property saved are obliged to contribute their proportional part of the loss sustained. The doctrine of general average is thus discussed by a recent writer: "General average is a principle of customary law, independent of contract, whereby, when it is decided by the master of a vessel, acting for all the interests concerned, to sacrifice any part of a venture exposed to a common and imminent peril in order to save the rest, the interests so saved are compelled to contribute ratably to the owner of the in

"Dupeyre vs. Western M. & F.

Ins. Co., 2 Rob., 457.
Moore vs. Perpetual Ins. Co., 16
Mo., 98.

Washington Mut. Ins. Co. vs.
Reed, 20 Ohio, 199.

14 Fleming vs. Ins. Co., 12 Pa. St.,
391.

15 Marcy vs. Sun Mut. Ins. Co., 11
La. Ann., 748.
16 26 Cyc., page 651.

terest sacrificed, so that the cost of the sacrifice shall fall equally upon all." A recent writer on admiralty thus admirably summarizes the requisites to the right to claim general average contribution:18 "The sacrifice (a) must be voluntary, and for the benefit of all; (b) must be made by the master or by his authority; (c) must not be caused by any fault of the party asking the contribution; (d) must be successful; (e) must be necessary.'

"The most frequent causes of general average loss are putting into port for repairs to the vessel, or the re-handling of the cargo, and jettisons." 19 20

" Wright vs. Marwood, 7 Q. B.
Div., 67.
"Hughes, Adm., p. 41.

19 Hazelton vs. Ins. Co. (D. C.),

12 Fed., 159.

30 Vance on Insurance, Sec. 225.

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