Collision clause.

by us the insurers, that this writing or policy of assurance
shall be of as much force and effect as the surest writing
or policy of assurance heretofore made in Lombard Street,
or in the Royal Exchange, or elsewhere in London. And
so we the assurers are contented, and do hereby promise
and bind ourselves, each one for his own part, our heirs,
executors, and goods, to the assureds, their executors, ad-
ministrators, and assigns, for the true performance of the
premises, confessing ourselves paid the consideration due
unto us for this assurance by the assured, at and after the
rate of
In witness whereof, we the assurers have
subscribed our names and sums assured in London.

N.B.-Corn, fish, salt, fruit, flour, and seed are warranted free from average, unless general, or the ship be stranded. Sugar, tobacco, hemp, flax, hides and skins are warranted free from average, under five pounds per cent.; and all other goods, also the ship and freight are warranted free from average, under three pounds per cent., unless general, or the ship be stranded (k).

It has become the usual practice in the case of policies on ships for the insurers, in addition to undertaking the risks specified in the above form of policy, to engage by a separate clause attached to the policy, and known as the running down clause, that they will pay a proportion of any damages the assured may become liable to pay by reason of a collision arising from the fault of the vessel insured (1). The clause also usually contains a stipulation as to the part payment by the insurers of any costs incurred by the assureds in defending themselves against legal proceedings in respect of the collision (m).

The following is a copy of a form of the running down clause in frequent use at Lloyds :

And it is further agreed, that if the

hereby

insured shall come into collision with any other ship or

(k) As to the meaning of this memorandum, see post, p. 491. In Schedule E. to the 30 Vict. c. 23, is a form of policy which in all material respects is the same as that given in the text.

(7) See ante, p. 442; and as to the previous law, see Thompson v. Reynolds,

E. & B. 172, and Delaney v. Stoddart,

5 Taunt. 605.

(m) As to the construction of this clause, see Xenos v. Fox, L. R., 3 C. P. 630; 4 C. P. 665; Taylor v. Dewar, 5 B. & S. 58; 33 L. J., Q. B. 141; Thompson v. Reynolds, ubi supra. See also De Vaux v. Salvador, 4 A. & E. 420; Cavey v. Smith, 22 Sess. Cas. 902.

vessel, and the assureds shall in consequence thereof become
liable to pay, and shall pay, any sum or sums not exceed-
ing the value of the said vessel hereby assured, We, the
Assurers, will severally pay the assureds such proportions
of three-fourths of the sum so paid, as our respective sub-
scriptions hereto bear to the insured value of the said
vessel. And in cases where the liability of the ship has
been contested with our consent in writing, we will also
pay a like proportion of three-fourth parts of the costs
thereby incurred or paid.

But this agreement is in no case to be construed as ex-
tending to any sums the assureds may become liable to pay,
or shall pay, in respect to loss of life or personal injury to
individuals from any cause whatever.

The essential parts of the contract are as follows:-The stamp; the name of the assured; the ship; the subject-matter of insurance; the voyage; the perils insured against; the premium; the memorandum; and the subscription.

The statutes at present in force which relate to the stamping Stamps. of marine policies are the 30 Vict. c. 23, one of the schedules to which Act now regulates the amount of duty payable (n), the 33 & 34 Vict. c. 97, s. 117, and the 39 Vict. c. 6 (o).

The following provisions, many of which are new, are contained in these Acts.

No contract or agreement for sea insurance (p) (other than such insurance as is referred to in section 55 of "The Merchant

(n) 30 Vict. c. 23, Schedule B. The duties charged under this act are at the rate of-for every 10071. or fraction of 100%. insured, upon any voyage, 3d.; for any time not exceeding six months, 3d.; not exceeding twelve months, 6d. See Appendix, pp. cclxvi, cclxx. The principal statutes in force before the Act were the 35 Geo. 3, c. 63, and the 7 & 8 Vict. c. 21. By Schedule D. of 30 Vict. c. 23, the 35 Geo. 3, c. 63, and s. 4, and the schedule of 7 & 8 Vict. c. 21 (being the only provisions of that Act relating to marine insurance), are repealed.

(0) Appendix, p. cccxxxv.

(p) By sect. 4 of the 30 Vict. c. 23, the expression sea insurance "

means any insurance (including re-
insurance) made upon any ship or
vessel, or upon the machinery,
tackle, or furniture of any ship or
vessel, or upon any goods, merchan-
dise or property of any description
whatever, on board of any ship or
vessel, or upon the freight of or any
other interest which may be lawfully
insured in or relating to any ship or
vessel; and the word "policy" means
any instrument whereby a contract or
agreement for any sea insurance is
made or entered into. See also
sect. 12. And by sect. 5, the Com-
missioners of Inland Revenue are
to provide blank policies, printed
on paper, in the form set forth in

Invalidity of unstamped policy.

Shipping Act, 1862" (q)) is valid unless it is expressed in a policy; and every policy must specify the particular risk or adventure, the names of the subscribers or underwriters, and the sum or sums insured. If any of these particulars are omitted the policy is void (r).

Where an insurance is made for a voyage and also for time, or to extend to or cover any time beyond twenty-four hours after the ship has arrived at her destination and been there moored at anchor, the policy is chargeable with the duty both of a voyage and of a time policy (s).

Where carriers by sea or other persons, in consideration of the payment of money for additional freight or otherwise, undertake any risk attending goods, merchandize or property on board a ship, or indemnify the owner against any risk, loss or damage, such agreement or engagement is a contract for sea insurance (t).

No policy may be pleaded or given in evidence in any Court, or admitted in any Court to be good or available in law or in equity, unless duly stamped; and until recently the Commissioners of Inland Revenue could not stamp any policy executed within the United Kingdom at any time after it was signed or underwritten, except for the purpose of adding an additional stamp or stamps, to a policy of mutual insurance, where such policy had not been signed or underwritten to an amount exceeding the sum which the stamp previously impressed warranted (u); but by the Act of 1876 (39 Vict. c. 6) a policy of sea insurance is included within the provisions of the 16th section of the Stamp Act, 1870, and may be stamped after execution on payment of a penalty of 1007. (x).

Schedule E. to the Act, which any
person may buy, stamped with the re-
quisite duty. The day, month and
year of the issue must previously be
marked or written on the policy.
Sect. 6 provides that the Commissioners
must keep an office in London for this
purpose. By sect. 17, allowance may
be made for spoiled, obliterated, or
unused policies. Formerly, under 35
Geo. 3, c. 63, s. 10, allowance could be
made where there was an over-insurance
upon a homeward voyage.
This is
not provided for by the present Act.

A policy, by which the separate
and distinct interests of two or more

Under the provisions of the Stamp Act, 1870, any policy Stamps on policies exemade or executed out of, but being in any manner enforceable cuted abroad. within, the United Kingdom is chargeable with duty under the 30 Vict. c. 23, and may be stamped within the period of two months next after it shall have been received in the United Kingdom (y).

No policy may be made for any time exceeding twelve Duration of months ().

Prior to the execution of the stamped policy a memorandum of the terms of the proposed policy is generally initialed by the underwriters (a). This memorandum is what is commonly called "the slip," and various questions have from time to time arisen as to its effect.

Whilst the Acts relating to the stamping of marine insurances in force before the 30 Vict. c. 23, remained unrepealed, it was held that the Courts could not look at "the slip" for any purpose (b). The 30 Vict. c. 23, provides that a contract of marine insurance, except when made under the Merchant Shipping Acts, shall be void unless expressed in a policy, and that no policy, unless stamped, shall be available either at law or in equity; and it seems that now a slip, although still, except in the case above mentioned, not enforceable, or admissible as evidence of a contract of marine insurance, may be given in evidence for collateral purposes. Thus, in order to ascertain whether there has been undue concealment on the part of the assured, the Court may, in an action on a duly stamped policy, look at the slip. It has been held that, as the slip is in practice, and according to the understanding of

(y) 33 & 34 Vict. c. 97, s. 117. The 30 Vict. c. 23 contains, in sects. 13, 14, 15 and 16, provisions making liable to a penalty of 1007. persons who pay upon any loss unless the insurance is written and stamped, or who enter into any contract, memorandum, or agreeement for sea insurance unless such insurance is in writing and stamped, or issue copies of policies which are not stamped, and prohibiting brokers or agents making charges unless the policy is in writing and stamped. See, as to these sections, Stowce v. Querner, L. R., 5 Ex. 155.

(z) 30 Vict. c. 23, s. 8.

(a) See Xenos v. Wickham, 33 L. J., C. P. 13; Perry v. The Great Ship Co., M.P.

(b) 35 Geo. 3, c. 63, ss. 17 and 18, and 7 & 8 Vict. c. 21, s. 4, both of which are repealed by 30 Vict. c. 23. These provisions did not give any validity to slips. See Marsden v. Reid, 3 East, 572; Warwick v. Slade, 3 Camp. 127; Pattison v. Mills, 2 Bligh, N. S. 562; The Morocco Land and Trading Co. v. Fry, 11 Jurist, N. S. 76.

G G

time policies.

Effect of the slip."

The name of the assured.

those engaged in maritime assurance, the complete and final contract between the parties, the assured need not communicate to the underwriters facts which come to his knowledge after the slip has been initialed and before the policy has been executed (y). But a stamped policy is essential to a valid contract of insurance, and it has been held that the initialing of a slip and forwarding it to the broker of the assured are parts of one entire contract void under the statute, and so, although the broker pays the premium and the amount of the stamp duty to the agent of the underwriter, no further contract to execute a stamped policy can be implied, and therefore the assured, if there be no stamped policy, is without remedy (z).

The effect of the alteration of a policy is mentioned below (a).

The legislature has provided that it shall not be lawful to effect a policy on any ship, goods, or other property, unless the name or the usual style and firm of dealing of one or more of the persons interested, or of the consignor or consignee of the property insured, or of the person residing in Great Britain who receives the order for effecting the policy, or of the person who gives the order to the agent immediately employed to effect it, is inserted in it (b). This enactment has met with a liberal construction; and it has been held that a policy effected in the name of the general agents of the consignor, who receive a cargo upon the refusal of the consignee to accept it, is valid; and that if, acting upon the clear intention of the consignor, although without his express authority, they effect an insurance as his agents, or if their act is subsequently ratified by their principal, they may recover on the policy (c). Nor is it neces

(y) Ionides v. The Pacific Fire and Marine Insurance Company, L. R., 6 Q. B. 674; affirmed, L. R., 7 Q. B. 517; Cory v. Patton, L. R., 7 Q. B. 304; L. R., 9 Q. B. 577; Lishman v. The Northern Marine Insurance Company, L. R., 8 C. P. 216; L. R., 10 C. P. 179.

(z) Fisher v. Liverpool Marine Insur-
ance Company, L. R., 8 Q. B. 469;
affirmed on appeal, L. R., 9 Q. B. 418.
See also Mackenzie v. Coulson, L. R.,
8 Eq. 368, observed upon in Cory v.
Patton, L. R., 7 Q. B. 304.

(a) See post, p. 453.
(b) 28 Geo. 3, c. 56. An earlier
statute, the 25 Geo. 3, c. 44, which
was repealed by this act, was passed
to prevent the effecting of policies in
blank, and required that the names of

the persons interested, or of the agent who effected the policy, should be inserted. See Cox v. Parry, 1 T. R. 464, and Pray v. Edie, ib. 313.

(e) Wolff v. Horncastle, 1 B. & P. 316; Lucena v. Craufurd, 3 B. & P. 75; 2 N. R. 269; Stirling v. Vaughan, 11 East, 619; Routh v. Thompson, 13 East, 274; Hagedorn v. Oliverson, 2 M. & S. 485; Barlow v. Leckie, 4 J. B. Moore, 8; and see Bell v. Janson, 1 M. & S. 201, where it was held that a letter directing assurance could not be considered to be a ratification of an insurance which had been actually made at the time, but without the knowledge of the principal. See also Browning v. The Provincial Insurance Company of Canada, L. R., 5 P. C. 263.