### Marine Insurance Ordinance 《海上保險條例》

5. Insurable interest defined
(1) Subject to the provisions of this Ordinance, every person has an insurable interest who is interested in a marine adventure.
(2) In particular a person is interested in a marine adventure where he stands in any legal or equitable relation to the adventure or to any insurable property at risk therein, in consequence of which he may benefit by the safety or due arrival of insurable property, or may be prejudiced by its loss, or by damage thereto, or by the detention thereof, or may incur liability in respect thereof.
[cf. 1906 c. 41 s. 5 U.K.]

6. When interest must attach
(1) The assured must be interested in the subject-matter insured at the time of the loss though he need not be interested when the insurance is effected:
Provided that where the subject-matter is insured “lost or not lost”, the assured may recover although he may not have acquired his interest until after the loss, unless at the time of effecting the contract of insurance the assured was aware of the loss, and the insurer was not.
(2) Where the assured has no interest at the time of the loss, he cannot acquire interest by any act or election after he is aware of the loss.
[cf. 1906 c. 41 s. 6 U.K.]

7. Defeasible or contingent interest
(1) A defeasible interest is insurable, as also is a contingent interest.
(2) In particular, where the buyer of goods has insured them, he has an insurable interest, notwithstanding that he might, at his election, have rejected the goods, or have treated them as at the seller’s risk, by reason of the latter’s delay in making delivery or otherwise.
[cf. 1906 c. 41 s. 7 U.K.]

8. Partial interest
A partial interest of any nature is insurable.
[cf. 1906 c. 41 s. 8 U.K.]

9. Re-insurance
(1) The insurer under a contract of marine insurance has an insurable interest in his risk, and may re-insure in respect of it.
(2) Unless the policy otherwise provides, the original assured has no right or interest in respect of such re-insurance.
[cf. 1906 c. 41 s. 9 U.K.]

10. Bottomry
The lender of money on bottomry or respondentia has an insurable interest in respect of the loan.
[cf. 1906 c. 41 s. 10 U.K.]

### Marine Insurance Ordinance 《海上保險條例》

11. Master’s and seamen’s wages
The master or any member of the crew of a ship has an insurable interest in respect of his wages.
[cf. 1906 c. 41 s. 11 U.K.]

12. Advance freight
In the case of advance freight, the person advancing the freight has an insurable interest, in so far as such freight is not repayable in case of loss.
[cf. 1906 c. 41 s. 12 U.K.]

13. Charges of insurance
The assured has an insurable interest in the charges of any insurance which he may effect.
[cf. 1906 c. 41 s. 13 U.K.]

14. Quantum of interest
(1) Where the subject-matter insured is mortgaged, the mortgagor has an insurable interest in the full value thereof, and the mortgagee has an insurable interest in respect of any sum due or to become due under the mortgage.
(2) A mortgagee, consignee, or other person having an interest in the subject-matter insured may insure on behalf and for the benefit of other persons interested as well as for his own benefit.
(3) The owner of insurable property has an insurable interest in respect of the full value thereof, notwithstanding that some third person may have agreed, or be liable, to indemnify him in case of loss.
[cf. 1906 c. 41 s. 14 U.K.]

15. Assignment of interest
Where the assured assigns or otherwise parts with his interest in the subject-matter insured, he does not thereby transfer to the assignee his rights under the contract of insurance, unless there be an express or implied agreement with the assignee to that effect.But the provisions of this section do not affect a transmission of interest by operation of law.
[cf. 1906 c. 41 s. 15 U.K.]

### Marine Insurance Ordinance 《海上保險條例》

16. Measure of insurable value
Subject to any express provision or valuation in the policy, the insurable value of the subject-matter insured must be ascertained as follows—
(a) in insurance on ship, the insurable value is the value, at the commencement of the risk, of the ship, including her outfit, provisions and stores for the officers and crew, money advanced for seamen’s wages, and other disbursements (if any) incurred to make the ship fit for the voyage or adventure contemplated by the policy, plus the charges of insurance upon the whole:
The insurable value, in the case of a steamship, includes also the machinery, boilers, and coals and engine stores if owned by the assured, and, in the case of a ship engaged in a special trade, the ordinary fittings requisite for that trade;
(b) in insurance on freight, whether paid in advance or otherwise, the insurable value is the gross amount of the freight at the risk of the assured, plus the charges of insurance;
(c) in insurance on goods or merchandise, the insurable value is the prime cost of the property insured, plus the expenses of and incidental to shipping and the charges of insurance upon the whole;
(d) in insurance on any other subject-matter, the insurable value is the amount at the risk of the assured when the policy attaches, plus the charges of insurance.
[cf. 1906 c. 41 s. 16 U.K.]

17. Insurance is uberrimœ fidei
A contract of marine insurance is a contract based upon the utmost good faith, and, if the utmost good faith be not observed by either party, the contract may be avoided by the other party.
[cf. 1906 c. 41 s. 17 U.K.]

### Marine Insurance Ordinance 《海上保險條例》

18. Disclosure by assured
(1) Subject to the provisions of this section, the assured must disclose to the insurer, before the contract is concluded, every material circumstance which is known to the assured, and the assured is deemed to know every circumstance which, in the ordinary course of business, ought to be known by him. If the assured fails to make such disclosure, the insurer may avoid the contract.
(2) Every circumstance is material which would influence the judgment of a prudent insurer in fixing the premium, or determining whether he will take the risk.
(3) In the absence of inquiry the following circumstances need not be disclosed, namely—
(a) any circumstance which diminishes the risk;
(b) any circumstance which is known or presumed to be known to the insurer. The insurer is presumed to know matters of common notoriety or knowledge, and matters which an insurer in the ordinary course of his business, as such, ought to know;
(c) any circumstance as to which information is waived by the insurer;
(d) any circumstance which it is superfluous to disclose by reason of any express or implied warranty.
(4) Whether any particular circumstance, which is not disclosed, be material or not is, in each case, a question of fact.
(5) The term circumstance (情況) includes any communication made to, or information received by, the assured.
[cf. 1906 c. 41 s. 18 U.K.]

19. Disclosure by agent effecting insurance
Subject to the provisions of section 18 as to circumstances which need not be disclosed, where an insurance is effected for the assured by an agent, the agent must disclose to the insurer—
(a) every material circumstance which is known to himself and an agent to insure is deemed to know every circumstance which in the ordinary course of business ought to be known by, or to have been communicated to, him; and
(b) every material circumstance which the assured is bound to disclose, unless it comes to his knowledge too late to communicate it to the agent.
[cf. 1906 c. 41 s. 19 U.K.]