The cargo comprised some 25 tons of redwood, which the master had purchased on behalf of his owner, 122 tons of saltpetre, for which the ship was contracted to carry, and a further 90 tons of light goods, for which there was no written contract of carriage, only a verbal undertaking. What may be insured as freight and, furthermore, when a policy on freight attaches, was clarified long ago in the old case of Flint v Flemyng, below. UTMOST GOOD FAITH, DISCLOSURE AND REPRESENTATIONS, Cases and Materials on Marine Insurance Law, Arbitration of International Business Disputes, Brownlie’s Principles of Public International Law, Health and Human Rights in a Changing World, he Handbook of Maritime Economics and Business, Information Doesn't Want to Be Free_ Laws for the Internet Age, International Contractual and Statutory Adjudication, International Maritime Conventions (Volume 3), International Sales Law A Guide to the CISG, Mandatory Reporting Laws and the Identification of Severe Child Abuse and Neglect, Research on Selected China's Legal Issues of E-Business, Serving the Rule of International Maritime Law, Stephen Cretney-Family Law in the Twentieth Century_ A History-Oxford University Press (2003), The Impact of Corruption on International Commercial Contracts, Theoretical and Empirical Insights into Child and Family Poverty, The Oxford History of the Laws of England, The Routledge Companion to Philosophy of Law, Trade Policy between Law Diplomacy and Scholarship. English-Chinese law dictionary (法律英汉双解大词典). It follows that the defence of breach of warranty cannot be maintained, and the learned judge was right in so holding. A separately insured item will be an actual total loss when the subject matter of insurance is destroyed or where the Policyholder is irretrievably deprived of the subject matter of insurance.. However, I found that all the explanations seemed a little silly. The court ruled that the term ‘freight’ did not include passage money and, consequently, there was a total loss of the freight insured under the policy. As both the Master of the Rolls and Atkin LJ point out, there was abundant evidence of a usage that in this trade bales of wool should be carried on deck. CHAPTER 2 THE SUBJECT MATTER OF INSURANCE THE SUBJECT MATTER OF INSURANCE 2.1 Anything in respect of which there is a risk of loss from maritime perils may be the subject of … The plaintiff owner of Sandringham had the policy on freight altered, but failed to convey to the insurers that only the freight on the rice was to be insured and that the policy did not include the passage money payable by the coolies on arrival at Mauritius. As the insurers refused to pay the claim, the plaintiff sued the defendants. If you were to tell a sailor that the ‘hull’ of his ship included the provisions on board, he would be very much surprised; and so he would if he were told that the provisions were part of the ‘machinery’ of the ship. The subject of ‘freight’ can be confusing because, primarily, the payment of freight is concerned with contracts of carriage, not marine insurance. What constitutes a ‘ship’ is determined by r 15 of the Rules for Construction, which states: The term ‘ship’ includes the hull, materials and outfit, stores and provisions for the officers and crew, and, in the case of vessels engaged in a special trade, the ordinary fittings requisite for the trade, and also, in the case of a steamship, the machinery, boilers, and coals and engine stores, if owned by the assured. Insurance and Insurable Interest The Court of Appeal ruled that the risk of carrying a car on deck was not covered by the insurance policy and the defendants, who had agreed to insure the car as part of the contract with the plaintiff, were liable. Thus, where freight is concerned, contracts of carriage and contracts of insurance, though separate issues, are closely related. Marine Insurance. The subject matter of the insurance refers either to the property of the insured and related interests associated therewith, or to the life and the body of the insured, which is the object of the insurance Rule 17 is very oddly worded, but it appears to me that, on its true reading, it leaves the law as to insurance of deck cargo very much as it was before the Marine Insurance Act was passed. So you might ask what is the difference between BA - business and SME in insurance. It appears, however, that the most frequent course is to describe passage money by a distinguishing term, and not merely as freight; and it was proved that, for insurance purposes, there is a distinction between freight and passage money, because the premium for the latter, upon a voyage from Calcutta to Mauritius, is generally less than that for the former; so that, as a matter of business, the not mentioning the subject upon the occasion of the insurance would indicate that the freight was probably intended to refer to merchandise.