MARINE INSURANCE ACT 1909

This compilation was prepared on 14 July 2008
taking into account amendments up to Act No. 73 of 2008

The text of any of those amendments not in force
on that date is appended in the Notes section

The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General's Department, Canberra

Contents

Part I--Preliminary 1

1............ Short title and commencement [see Note 1]....................................... 1

3............ Interpretation...................................................................................... 1

4............ Saving of rules of common law........................................................... 1

5............ Application of certain Imperial and State Acts.................................. 1

6............ Application of Act............................................................................. 2

Part II--Marine Insurance 3

Division 1--Limits of Marine Insurance 3

7............ Marine insurance defined.................................................................... 3

8............ Mixed sea and land risks..................................................................... 3

9............ Marine adventure and maritime perils defined................................... 3

Division 2--Insurable Interest 5

10.......... Avoidance of wagering or gaming contracts........................................ 5

11.......... Insurable interest defined.................................................................... 5

12.......... When interest must attach.................................................................. 5

13.......... Defeasible or contingent interest........................................................ 6

14.......... Partial interest..................................................................................... 6

15.......... Re‑insurance....................................................................................... 6

16.......... Bottomry............................................................................................ 6

17.......... Master's and seamen's wages............................................................ 6

18.......... Advance freight................................................................................... 7

19.......... Charges of insurance........................................................................... 7

20.......... Quantum of interest............................................................................ 7

21.......... Assignment of interest........................................................................ 7

Division 3--Insurable Value 8

22.......... Measure of insurable value................................................................. 8

Division 4--Disclosure and Representations 9

23.......... Insurance is uberrimae fidei................................................................ 9

24.......... Disclosure by assured......................................................................... 9

25.......... Disclosure by agent effecting insurance............................................ 10

26.......... Representations pending negotiation of contract............................. 10

27.......... When contract is deemed to be concluded........................................ 11

Division 5--The Policy 12

28.......... Contract must be embodied in policy............................................... 12

29.......... What policy must specify................................................................ 12

30.......... Signature of insurer........................................................................... 12

31.......... Voyage and time policies.................................................................. 12

32.......... Designation of subject‑matter........................................................... 13

33.......... Valued policy.................................................................................... 13

34.......... Unvalued policy............................................................................... 14

35.......... Floating policy by ship or ships...................................................... 14

36.......... Construction of terms in policy....................................................... 14

37.......... Premium to be arranged.................................................................... 14

Division 6--Double Insurance 16

38.......... Double insurance.............................................................................. 16

Division 7--Warranties 17

39.......... Nature of warranty........................................................................... 17

40.......... When breach of warranty excused.................................................... 17

41.......... Express warranties............................................................................ 17

42.......... Warranty of neutrality...................................................................... 18

43.......... No implied warranty of nationality.................................................. 18

44.......... Warranty of good safety................................................................... 18

45.......... Warranty of seaworthiness of ship.................................................. 18

46.......... No implied warranty that goods are seaworthy............................... 19

47.......... Warranty of legality.......................................................................... 19

Division 8--The Voyage 20

48.......... Implied condition as to commencement of risk................................ 20

49.......... Alteration of port of departure......................................................... 20

50.......... Sailing for different destination......................................................... 20

51.......... Change of voyage.............................................................................. 20

52.......... Deviation.......................................................................................... 21

53.......... Several ports of discharge................................................................. 21

54.......... Delay in voyage................................................................................ 21

55.......... Excuses for deviation or delay.......................................................... 22

Part III--Assignment of Policy 23

56.......... When and how policy is assignable.................................................. 23

57.......... Assured who has no interest cannot assign...................................... 23

Part IV--The Premium 24

58.......... When premium payable.................................................................... 24

Part V--Loss and Abandonment 25

Division 1--General 25

61.......... Included and excluded losses............................................................ 25

62.......... Partial and total loss......................................................................... 25

63.......... Actual total loss................................................................................ 26

64.......... Missing ship..................................................................................... 26

65.......... Effect of transhipment etc................................................................ 26

66.......... Constructive total loss defined......................................................... 26

67.......... Effect of constructive total loss........................................................ 27

68.......... Notice of abandonment..................................................................... 27

69.......... Effect of abandonment...................................................................... 28

Division 2--Partial Losses (including Salvage, General Average, and Particular Charges) 29

70.......... Particular average loss....................................................................... 29

71.......... Salvage charges.................................................................................. 29

72.......... General average loss.......................................................................... 29

Part VI--Measure of Indemnity 31

Division 1--Liability of Insurer for Loss 31

73.......... Extent of liability of insurer for loss................................................. 31

74.......... Total loss.......................................................................................... 31

75.......... Partial loss of ship............................................................................ 31

76.......... Partial loss of freight......................................................................... 32

77.......... Partial loss of goods, merchandise etc.............................................. 32

78.......... Apportionment of valuation............................................................. 33

79.......... General average contributions and salvage charges........................... 33

80.......... Liabilities to third parties................................................................. 34

81.......... General provisions as to measure of indemnity............................... 34

82.......... Particular average warranties............................................................ 34

83.......... Successive losses.............................................................................. 35

84.......... Suing and labouring clause................................................................ 35

Division 2--Rights of Insurer on Payment of Loss 36

85.......... Right of subrogation......................................................................... 36

86.......... Right of contribution........................................................................ 36

87.......... Effect of under insurance.................................................................. 36

Part VII--Return of Premium 37

88.......... Enforcement of return....................................................................... 37

89.......... Return by agreement......................................................................... 37

90.......... Return for failure of consideration.................................................... 37

Part VIII--Mutual Insurance 39

91.......... Modification of Act in case of mutual insurance.............................. 39

Part IX--Supplemental 40

92.......... Ratification by assured..................................................................... 40

93.......... Implied obligations varied by agreement or usage............................ 40

94.......... Reasonable time etc. a question of fact............................................. 40

95.......... Reference to slip or cover note......................................................... 40

Schedules--The First Schedule 41

The Second Schedule 43

Notes 49

Act	Number and year	Date of Assent	Date of commencement	Application, saving or transitional provisions
Marine Insurance Act 1909	11, 1909	11 Nov 1909	1 July 1910 (see Gazette 1910, p. 993)
Statute Law Revision (Decimal Currency) Act 1966	93, 1966	29 Oct 1966	1 Dec 1966	--
Statute Law Revision Act 1973	216, 1973	19 Dec 1973	31 Dec 1973	Ss. 9(1) and 10
Financial Services Reform (Consequential Provisions) Act 2001	123, 2001	27 Sept 2001	Schedule 1 (item 259): 11 Mar 2002 (see Gazette 2001, No. GN42) (a)	--
Statute Law Revision Act 2008	73, 2008	3 July 2008	Schedule 4 (items 386-389): 4 July 2008	--

Table of Amendments

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
Part I
S. 2......................................	rep. No. 216, 1973
S. 3......................................	am. No. 73, 2008
Part II
Division 2
Ss. 11-13............................	am. No. 73, 2008
S. 15....................................	am. No. 73, 2008
S. 17....................................	am. No. 73, 2008
Ss. 19-21............................	am. No. 73, 2008
Division 4
Ss. 24-26............................	am. No. 73, 2008
Division 5
S. 29....................................	am. No. 73, 2008
Division 6
S. 38....................................	am. No. 73, 2008
Division 7
Ss. 39, 40............................	am. No. 73, 2008
Division 8
S. 48....................................	am. No. 73, 2008
S. 52....................................	am. No. 73, 2008
S. 55....................................	am. No. 73, 2008
Part III
Ss. 56, 57............................	am. No. 73, 2008
Part IV
S. 58....................................	am. No. 73, 2008
Ss. 59, 60............................	rep. No. 123, 2001
Part V
Division 1
Ss. 61, 62............................	am. No. 73, 2008
S. 66....................................	am. No. 73, 2008
S. 68....................................	am. No. 73, 2008
Division 2
Ss. 71, 72............................	am. No. 73, 2008
Part VI
Division 1
S. 73....................................	am. No. 73, 2008
Ss. 79, 80............................	am. No. 73, 2008
S. 84....................................	am. No. 73, 2008
Division 2
Ss. 85-87............................	am. No. 73, 2008
Part VII
S. 88....................................	am. No. 73, 2008
S. 90....................................	am. No. 73, 2008
Part IX
S. 92....................................	am. No. 73, 2008
Schedules
The Second Schedule.........	am. No. 93, 1966

Commonwealth Consolidated Acts

MARINE INSURANCE ACT 1909 - NOTES