jswizzle3737/ontario_laws_and_regs huggingface dataset:
1. In this Act, unless the context otherwise requires, “freight” includes the profit derivable by a ship-owner from the employment of the owner’s ship to carry the owner’s goods or movables, as well as freight payable by a third party, but does not include passage-money; (“fret”) “movables” means any movable tangible property, other than the ship, and includes money, valuable securities and other documents; (“meubles”) “policy” means a marine policy. (“police”)  R.S.O. 1990, c. M.2, s. 1.
2. A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the assured, in manner and to the extent thereby agreed, against marine losses, that is to say, the losses incident to marine adventure.  R.S.O. 1990, c. M.2, s. 2. Extended application
3. (1) A contract of marine insurance may, by its express terms or usage of the trade, be written so as to protect the assured against losses on inland waters, or may be extended so as to protect the assured against losses on any land or air risk that may be incidental to any sea or inland water voyage.  R.S.O. 1990, c. M.2, s. 3 (1). Where Act applies (2) Where a ship in course of building, or the launch of a ship, or any adventure analogous to a marine adventure, is covered by a policy in the form of a marine policy, this Act, in so far as applicable, applies thereto; but, except as provided by this section, nothing in this Act alters or affects any rule of law applicable to any contract of insurance other than a contract of marine insurance as defined by this Act.  R.S.O. 1990, c. M.2, s. 3 (2).
4. (1) Subject to this Act, every lawful marine adventure may be the subject of a contract of marine insurance.  R.S.O. 1990, c. M.2, s. 4 (1). Marine adventures defined (2) In particular there is a marine adventure where, (a) any ship, goods, or other movables are exposed to maritime perils and such property is in this Act referred to as “insurable property”; (b) the earning or acquisition of any freight, passage-money, commission, profit, or other pecuniary benefit, or the security for any advances, loan, or disbursements, is endangered by the exposure of insurable property to maritime perils; (c) any liability to a third party may be incurred by the owner of, or other person interested in or responsible for, insurable property by reason of maritime perils.  R.S.O. 1990, c. M.2, s. 4 (2). Maritime perils defined (3) “Maritime perils” means the perils consequent on or incidental to the navigation of the sea, that is to say, perils of the seas, fire, war perils, pirates, rovers, thieves, captures, seizures, restraints, and detainments of princes and peoples, jettisons, barratry, and any other perils, either of the like kind or which may be designated by the policy.  R.S.O. 1990, c. M.2, s. 4 (3). Insurable Interest
5. (1) Every contract of marine insurance by way of gaming or wagering is void.  R.S.O. 1990, c. M.2, s. 5 (1). What contracts of marine insurance deemed void (2) A contract of marine insurance is deemed to be a gaming or wagering contract, (a) where the assured has not an insurable interest as defined by this Act, and the contract is entered into with no expectation of acquiring such an interest; or (b) where the policy is made “interest or no interest” or “without further proof of interest than the policy itself”, or “without benefit of salvage to the insurer”, or subject to any other like term, provided that where there is no possibility of salvage, a policy may be effected without benefit of salvage to the insurer.  R.S.O. 1990, c. M.2, s. 5 (2).
6. (1) Subject to this Act, every person has an insurable interest who is interested in a marine adventure.  R.S.O. 1990, c. M.2, s. 6 (1). defined (2) In particular a person is interested in a marine adventure where the person stands in any legal or equitable relation to the adventure or to any insurable property at risk therein, in consequence of which the person 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.  R.S.O. 1990, c. M.2, s. 6 (2).
7. (1) The assured must be interested in the subject-matter insured at the time of the loss though the assured 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 the assured may not have acquired the 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.  R.S.O. 1990, c. M.2, s. 7 (1). Where no interest (2) An assured who has no interest at the time of the loss cannot acquire interest by any act or election after becoming aware of the loss.  R.S.O. 1990, c. M.2, s. 7 (2).
8. (1) A defeasible interest and a contingent interest are insurable.  R.S.O. 1990, c. M.2, s. 8 (1). Buyer of goods (2) In particular, where the buyer of goods has insured them, the buyer has an insurable interest, although the buyer might have elected to reject the goods, or have treated them as at the seller’s risk, by reason of the latter’s delay in making delivery or otherwise.  R.S.O. 1990, c. M.2, s. 8 (2).
9. A partial interest of any nature is insurable.  R.S.O. 1990, c. M.2, s. 9.
10. (1) The insurer under a contract of marine insurance has an insurable interest in the insurer’s risk and may reinsure in respect of it.  R.S.O. 1990, c. M.2, s. 10 (1). Interest of original assured (2) Unless the policy otherwise provides, the original assured has no right or interest in respect of such reinsurance.  R.S.O. 1990, c. M.2, s. 10 (2).
11. The lender of money on bottomry or respondentia has an insurable interest in respect of the loan.  R.S.O. 1990, c. M.2, s. 11.
12. The master or any member of the crew of a ship has an insurable interest in respect of his or her wages.  R.S.O. 1990, c. M.2, s. 12.
13. 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.  R.S.O. 1990, c. M.2, s. 13.
14. The assured has an insurable interest in the charges of any insurance that the assured may effect.  R.S.O. 1990, c. M.2, s. 14. Interests of mortgagor, mortgagee, owner
15. (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.  R.S.O. 1990, c. M.2, s. 15 (1). Mortgagee, consignee (2) A mortgagee, consignee, or other person having an interest in the subject-matter insured may insure on behalf and for the benefit of any interested person.  R.S.O. 1990, c. M.2, s. 15 (2). Owner (3) The owner of insurable property has an insurable interest in respect of the full value thereof, although some third person may have agreed, or be liable, to indemnify the owner in case of loss.  R.S.O. 1990, c. M.2, s. 15 (3).
16. An assured who assigns or otherwise parts with an interest in the subject-matter insured does not thereby transfer to the assignee the assured’s rights under the contract of insurance, unless there is 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.  R.S.O. 1990, c. M.2, s. 16. Insurable Value
17. Subject to any express provision or valuation in the policy, the insurable value of the subject-matter insured must be ascertained as follows: 1. In insurance on ship, the insurable value is the value, at the commencement of the risk, of the ship, including its outfit, provisions and stores for the officers and crew, money advanced for crew’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, and the insurable value, in the case of a steamship, includes also the machinery, boilers, and coals, oils, 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. 2. 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. 3. 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. 4. 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.  R.S.O. 1990, c. M.2, s. 17. Disclosure and Representations
18. A contract of marine insurance is a contract based upon the utmost good faith, and if the utmost good faith is not observed by either party the contract may be avoided by the other party.  R.S.O. 1990, c. M.2, s. 18.
19. (1) Subject to this section, the assured must disclose to the insurer before the contract is concluded every material circumstance that is known to the assured, and the assured is deemed to know every circumstance that in the ordinary course of business the assured ought to know and if the assured fails to make such disclosure the insurer may avoid the contract.  R.S.O. 1990, c. M.2, s. 19 (1). Material circumstances (2) Every circumstance is material that would influence the judgment of a prudent insurer in fixing the premium or determining whether to take the risk.  R.S.O. 1990, c. M.2, s. 19 (2). Circumstances not disclosed (3) In the absence of inquiry the following circumstances need not be disclosed, (a) any circumstance that diminishes the risk; (b) any circumstance that is known or presumed to be known to the insurer and the insurer is presumed to know matters of common notoriety or knowledge and matters that an insurer in the ordinary course of business, as such, ought to know; (c) any circumstance as to which information is waived by the insurer; (d) any circumstance that it is superfluous to disclose by reason of any express or implied warranty.  R.S.O. 1990, c. M.2, s. 19 (3). Disclosure question of fact (4) Whether any particular circumstance that is not disclosed be material or not is in each case a question of fact.  R.S.O. 1990, c. M.2, s. 19 (4). Circumstance defined (5) The term “circumstance” includes any communication made to or information received by the assured.  R.S.O. 1990, c. M.2, s. 19 (5).
20. Subject to the provisions of section 19 as to circumstances that 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 that the agent knows, and an agent to insure is deemed to know every circumstance that in the ordinary course of business ought to be known by or to have been communicated to the agent; and (b) every material circumstance that the assured is bound to disclose, unless it comes to the assured’s knowledge too late to communicate it to the agent.  R.S.O. 1990, c. M.2, s. 20.
21. (1) Every material representation made by the assured or agent of the assured to the insurer during the negotiations for the contract, and before the contract is concluded, must be true and if it be untrue the insurer may avoid the contract.  R.S.O. 1990, c. M.2, s. 21 (1). material (2) A representation is material that would influence the judgment of a prudent insurer in fixing the premium or determining whether to take the risk.  R.S.O. 1990, c. M.2, s. 21 (2). Fact, expectation or belief (3) A representation may be either a representation as to a matter of fact or as to a matter of expectation or belief.  R.S.O. 1990, c. M.2, s. 21 (3). fact (4) A representation as to a matter of fact is true if it is substantially correct, that is to say, if the difference between what is represented and what is actually correct would not be considered material by a prudent insurer.  R.S.O. 1990, c. M.2, s. 21 (4). expectation or belief (5) A representation as to a matter of expectation or belief is true if it is made in good faith.  R.S.O. 1990, c. M.2, s. 21 (5). withdrawal (6) A representation may be withdrawn or corrected before the contract is concluded.  R.S.O. 1990, c. M.2, s. 21 (6). determination question of fact (7) Whether a particular representation be material or not is in each case a question of fact.  R.S.O. 1990, c. M.2, s. 21 (7).
22. A contract of marine insurance is deemed to be concluded when the proposal of the assured is accepted by the insurer, whether the policy is then issued or not, and for the purpose of showing when the proposal was accepted, reference may be made to the slip or covering note or other customary memorandum of the contract.  R.S.O. 1990, c. M.2, s. 22. The Policy
23. A contract of marine insurance is inadmissible in evidence unless it is embodied in a marine policy in accordance with this Act and the policy may be executed and issued either at the time when the contract is concluded or afterwards. R.S.O. 1990, c. M.2, s. 23.
24. A marine policy must specify, (a) the name of the assured or of some person who effects the insurance on behalf of the assured; (b) the subject-matter insured and the risk insured against; (c) the voyage or period of time, or both, as the case may be, covered by the insurance; (d) the sum or sums insured; and (e) the name or names of the insurers.  R.S.O. 1990, c. M.2, s. 24.
25. (1) A marine policy must be signed by or on behalf of the insurer; provided that in the case of a corporation the corporate seal may be sufficient, but nothing in this section shall be construed as requiring the subscription of a corporation to be under seal.  R.S.O. 1990, c. M.2, s. 25 (1). Subscription by two or more insurers (2) Where a policy is subscribed by or on behalf of two or more insurers, each subscription, unless the contrary is expressed, constitutes a distinct contract with the assured.  R.S.O. 1990, c. M.2, s. 25 (2).
26. Where the contract is to insure the subject-matter at and from, or from one place to another or others, the policy is called a “voyage policy”, and where the contract is to insure the subject-matter for a definite period of time the policy is called a “time policy” and a contract for both voyage and time may be included in the same policy.  R.S.O. 1990, c. M.2, s. 26.
27. (1) The subject-matter insured must be designated in a marine policy with reasonable certainty.  R.S.O. 1990, c. M.2, s. 27 (1). Nature and extent of interest (2) The nature and extent of the interest of the assured in the subject-matter insured need not be specified in the policy.  R.S.O. 1990, c. M.2, s. 27 (2). Designation in general terms (3) Where the policy designates the subject-matter insured in general terms, it shall be construed to apply to the interest intended by the assured to be covered.  R.S.O. 1990, c. M.2, s. 27 (3). Usage (4) In the application of this section regard shall be had to any usage regulating the designation of the subject-matter insured.  R.S.O. 1990, c. M.2, s. 27 (4).
28. (1) A policy may be either valued or unvalued.  R.S.O. 1990, c. M.2, s. 28 (1). Valued policy (2) A valued policy is a policy that specifies the agreed value of the subject-matter insured.  R.S.O. 1990, c. M.2, s. 28 (2). Value fixed (3) Subject to this Act, and in the absence of fraud, the value fixed by the policy is, as between the insurer and assured, conclusive of the insurable value of the subject intended to be insured, whether the loss is total or partial.  R.S.O. 1990, c. M.2, s. 28 (3). Idem (4) Unless the policy otherwise provides, the value fixed by the policy is not conclusive for the purpose of determining whether there has been a constructive total loss.  R.S.O. 1990, c. M.2, s. 28 (4).
29. An unvalued policy is a policy that does not specify the value of the subject-matter insured, but, subject to the limit of the sum insured, leaves the insurable value to be subsequently ascertained in the manner hereinbefore specified.  R.S.O. 1990, c. M.2, s. 29.
30. (1) A floating policy is a policy that describes the insurance in general terms and leaves the name of the ship or ships and other particulars to be defined by subsequent declaration.  R.S.O. 1990, c. M.2, s. 30 (1). Declaration (2) The subsequent declaration or declarations may be made by endorsement on the policy or in other customary manner.  R.S.O. 1990, c. M.2, s. 30 (2). Idem (3) Unless the policy otherwise provides, the declarations must be made in the order of dispatch or shipment and they must, in the case of goods, comprise all consignments within the terms of the policy, and the value of the goods or other property must be honestly stated, but an omission or erroneous declaration may be rectified even after loss or arrival, provided the omission or declaration was made in good faith.  R.S.O. 1990, c. M.2, s. 30 (3). Idem (4) Unless the policy otherwise provides, where a declaration of value is not made until after notice of loss or arrival, the policy must be treated as an unvalued policy as regards the subject-matter of that declaration.  R.S.O. 1990, c. M.2, s. 30 (4).
31. (1) A policy may be in the form in the Schedule.  R.S.O. 1990, c. M.2, s. 31 (1). Construction of terms in Schedule (2) Subject to this Act, and unless the context of the policy otherwise requires, the terms and expressions mentioned in the Schedule shall be construed as having the scope and meaning in the Schedule assigned to them.  R.S.O. 1990, c. M.2, s. 31 (2).
32. (1) Where an insurance is effected at a premium to be arranged, and no arrangement is made, a reasonable premium is payable.  R.S.O. 1990, c. M.2, s. 32 (1). Additional premium (2) Where an insurance is effected on the terms that an additional premium is to be arranged in a given event, and that event happens but no arrangement is made, then a reasonable additional premium is payable.  R.S.O. 1990, c. M.2, s. 32 (2). Double Insurance
33. (1) Where two or more policies are effected by or on behalf of the assured on the same adventure and interest or any part thereof, and the sums insured exceed the indemnity allowed by this Act, the assured is said to be over-insured by double insurance.  R.S.O. 1990, c. M.2, s. 33 (1). Double insurance where over-insured (2) Where the assured is over-insured by double insurance, (a) the assured, unless the policy otherwise provides, may claim payment from the insurers in such order as the assured may think fit, provided that the assured is not entitled to receive any sum in excess of the indemnity allowed by this Act; (b) where the policy under which the assured claims is a valued policy, the assured must give credit as against the valuation for any sum the assured received under any other policy without regard to the actual value of the subject-matter insured; (c) where the policy under which the assured claims is an unvalued policy, the assured must give credit, as against the full insurable value, for any sum received by the assured under any other policy; (d) where the assured receives any sum in excess of the indemnity allowed by this Act, the assured is deemed to hold such sum in trust for the insurers, according to their right of contribution among themselves.  R.S.O. 1990, c. M.2, s. 33 (2). Warranties, etc.
34. (1) A warranty, in the following sections relating to warranties, means a promissory warranty, that is to say, a warranty by which the assured undertakes that some particular thing shall or shall not be done, or that some condition shall be fulfilled, or whereby the assured affirms or negatives the existence of a particular state of facts.  R.S.O. 1990, c. M.2, s. 34 (1). express or implied (2) A warranty may be express or implied.  R.S.O. 1990, c. M.2, s. 34 (2). compliance with (3) A warranty as defined in subsection (1) is a condition that must be exactly complied with, whether it be material to the risk or not and if it is not so complied with, then, subject to any express provision in the policy, the insurer is discharged from liability as from the date of the breach of warranty, but without prejudice to any liability incurred by the insurer before that date.  R.S.O. 1990, c. M.2, s. 34 (3).
35. (1) Non-compliance with a warranty is excused when, by reason of a change of circumstances, the warranty ceases to be applicable to the circumstances of the contract, or when compliance with the warranty is rendered unlawful by any subsequent law.  R.S.O. 1990, c. M.2, s. 35 (1). Where warranty broken (2) Where a warranty is broken, the defence that the breach has been remedied and the warranty complied with before loss is not available to the assured.  R.S.O. 1990, c. M.2, s. 35 (2). Breach waived (3) A breach of warranty may be waived by the insurer.  R.S.O. 1990, c. M.2, s. 35 (3).
36. (1) An express warranty may be in any form of words from which the intention to warrant is to be inferred.  R.S.O. 1990, c. M.2, s. 36 (1). in policy (2) An express warranty must be included in or written upon the policy or must be contained in some document incorporated by reference into the policy.  R.S.O. 1990, c. M.2, s. 36 (2). implied warranty not excluded (3) An express warranty does not exclude an implied warranty unless it is inconsistent therewith.  R.S.O. 1990, c. M.2, s. 36 (3).
37. (1) Where insurable property, whether ship or goods, is expressly warranted “neutral”, there is an implied condition that the property shall have a neutral character at the commencement of the risk, and that, so far as the assured can control the matter, its neutral character shall be preserved during the risk.  R.S.O. 1990, c. M.2, s. 37 (1). Idem (2) Where a ship is expressly warranted “neutral”, there is also an implied condition that, so far as the assured can control the matter, it shall be properly documented, that is to say, that it shall carry the necessary papers to establish its neutrality, and that it shall not falsify or suppress its papers or use simulated papers and if any loss occurs through breach of this condition, the insurer may avoid the contract.  R.S.O. 1990, c. M.2, s. 37 (2).
38. There is no implied warranty as to the nationality of a ship, or that its nationality shall not be changed during the risk.  R.S.O. 1990, c. M.2, s. 38.
39. Where the subject-matter insured is warranted “well” or “in good safety” on a particular day, it is sufficient if it is safe at any time during the day.  R.S.O. 1990, c. M.2, s. 39.
40. (1) In the voyage policy there is an implied warranty that at the commencement of the voyage the ship shall be seaworthy for the purpose of the particular adventure insured.  R.S.O. 1990, c. M.2, s. 40 (1). Implied warranty (2) Where the policy attaches while the ship is in port, there is also an implied warranty that it shall at the commencement of the risk be reasonably fit to encounter the ordinary perils of the port.  R.S.O. 1990, c. M.2, s. 40 (2). Idem (3) Where the policy relates to a voyage that is performed in different stages during which the ship requires different kinds of or further preparation or equipment, there is an implied warranty that at the commencement of each stage the ship is seaworthy in respect of such preparation or equipment for the purposes of that stage.  R.S.O. 1990, c. M.2, s. 40 (3). When ship seaworthy (4) A ship is deemed to be seaworthy when it is reasonably fit in all respects to encounter the ordinary perils of the seas of the adventure insured.  R.S.O. 1990, c. M.2, s. 40 (4). No implied warranty in time policy (5) In a time policy there is no implied warranty that the ship shall be seaworthy at any stage of the adventure but where, with the privity of the assured, the ship is sent to sea in an unseaworthy state, the insurer is not liable for any loss attributable to unseaworthiness.  R.S.O. 1990, c. M.2, s. 40 (5).
41. (1) In a policy on goods or other movables there is no implied warranty that the goods or movables are seaworthy.  R.S.O. 1990, c. M.2, s. 41 (1). Voyage policy on goods (2) In a voyage policy on goods or other movables there is an implied warranty that at the commencement of the voyage the ship is not only seaworthy as a ship but also that it is reasonably fit to carry the goods or other movables to the destination contemplated by the policy.  R.S.O. 1990, c. M.2, s. 41 (2).
42. There is an implied warranty that the adventure insured is a lawful one, and that, so far as the assured can control the matter, the adventure shall be carried out in a lawful manner.  R.S.O. 1990, c. M.2, s. 42. The Voyage
43. (1) Where the subject-matter is insured by a voyage policy “at and from” or “from” a particular place, it is not necessary that the ship should be at that place when the contract is concluded, but there is an implied condition that the adventure shall be commenced within a reasonable time and that if the adventure is not so commenced the insurer may avoid the contract.  R.S.O. 1990, c. M.2, s. 43 (1). When condition may be negatived (2) The implied condition may be negatived by showing that the delay was caused by circumstances known to the insurer before the contract was concluded or by showing that the insurer waived the condition.  R.S.O. 1990, c. M.2, s. 43 (2).
44. Where the place of departure is specified by the policy and the ship, instead of sailing from that place, sails from any other place, the risk does not attach.  R.S.O. 1990, c. M.2, s. 44.
45. Where the destination is specified in the policy and the ship, instead of sailing for that destination, sails for any other destination, the risk does not attach.  R.S.O. 1990, c. M.2, s. 45.
46. (1) Where, after the commencement of the risk, the destination of the ship is voluntarily changed from the destination contemplated by the policy, there is said to be a change of voyage.  R.S.O. 1990, c. M.2, s. 46 (1). Insurer discharged from time of change (2) Unless the policy otherwise provides, where there is a change of voyage, the insurer is discharged from liability as from the time of change, that is to say, as from the time when the determination to change it is manifested; and it is immaterial that the ship may not in fact have left the course of voyage contemplated by the policy when the loss occurs.  R.S.O. 1990, c. M.2, s. 46 (2).
47. (1) Where a ship, without lawful excuse, deviates from the voyage contemplated by the policy, the insurer is discharged from liability as from the time of deviation and it is immaterial that the ship may have regained its route before any loss occurs.  R.S.O. 1990, c. M.2, s. 47 (1). Idem (2) There is a deviation from the voyage contemplated by the policy, (a) where the course of the voyage is specially designated by the policy and that course is departed from; or (b) where the course of the voyage is not specifically designated by the policy but the usual and customary course is departed from.  R.S.O. 1990, c. M.2, s. 47 (2). Intention immaterial (3) The intention to deviate is immaterial and there must be a deviation in fact to discharge the insurer from liability under the contract.  R.S.O. 1990, c. M.2, s. 47 (3).
48. (1) Where several ports of discharge are specified by the policy, the ship may proceed to all or any of them, but, in the absence of any usage or sufficient cause to the contrary, it must proceed to them, or such of them as it goes to, in the order designated by the policy, and if it does not there is a deviation.  R.S.O. 1990, c. M.2, s. 48 (1). Idem (2) Where the policy is to “ports of discharge”, within a given area, which are not named, the ship must, in the absence of any usage or sufficient cause to the contrary, proceed to them, or such of them as it goes to, in their geographical order, and if it does not there is a deviation.  R.S.O. 1990, c. M.2, s. 48 (2).
49. In the case of a voyage policy, the adventure insured must be prosecuted throughout its course with reasonable dispatch, and, if without lawful excuse it is not so prosecuted, the insurer is discharged from liability as from the time when the delay became unreasonable.  R.S.O. 1990, c. M.2, s. 49.
50. (1) Deviation or delay in prosecuting the voyage contemplated by the policy is excused, (a) where authorized by any special term in the policy; or (b) where caused by circumstances beyond the control of the master and his or her employer; or (c) where reasonably necessary in order to comply with an express or implied warranty; or (d) where reasonably necessary for the safety of the ship or subject-matter insured; or (e) for the purpose of saving human life or aiding a ship in distress where human life may be in danger; or (f) where reasonably necessary for the purpose of obtaining medical or surgical aid for any person on board the ship; or (g) where caused by the barratrous conduct of the master or crew, if barratry is one of the perils insured against.  R.S.O. 1990, c. M.2, s. 50 (1). Ship to resume course when cause ceases (2) When the cause excusing the deviation or delay ceases to operate, the ship must resume its course and prosecute its voyage with reasonable dispatch.  R.S.O. 1990, c. M.2, s. 50 (2). Assignment of Policy
51. (1) A marine policy is assignable unless it contains terms expressly prohibiting assignment and it may be assigned either before or after loss.  R.S.O. 1990, c. M.2, s. 51 (1). Effect of assignment (2) Where a marine policy has been assigned so as to pass the beneficial interest in such policy, the assignee of the policy is entitled to sue thereon in the assignee’s own name, and the defendant is entitled to make any defence arising out of the contract that the defendant would have been entitled to make if the action had been brought in the name of the person by or on behalf of whom the policy was effected.  R.S.O. 1990, c. M.2, s. 51 (2). How assignable (3) A marine policy may be assigned by endorsement thereon or in other customary manner.  R.S.O. 1990, c. M.2, s. 51 (3).
52. Where the assured has parted with or lost an interest in the subject-matter insured, and has not, before or at the time of so doing, expressly or impliedly agreed to assign the policy, any subsequent assignment of the policy is inoperative; provided that nothing in this section affects the assignment of a policy after loss.  R.S.O. 1990, c. M.2, s. 52. Premium
53. Unless otherwise agreed, the duty of the assured or the assured’s agent to pay the premium and the duty of the insurer to issue the policy to the assured or the agent are concurrent conditions, and the insurer is not bound to issue the policy until payment or tender of the premium.  R.S.O. 1990, c. M.2, s. 53.
54. (1) Unless otherwise agreed, where a marine policy is effected on behalf of the assured by a broker, the broker is directly responsible to the insurer for the premium and the insurer is directly responsible to the assured for the amount that may be payable in respect of losses or in respect of returnable premium.  R.S.O. 1990, c. M.2, s. 54 (1). Lien on policy (2) Unless otherwise agreed, the broker has, as against the assured, a lien upon the policy for the amount of the premium and the broker’s charges in respect of effecting the policy, and a broker who has dealt with the person who employs the broker as a principal has also a lien on the policy in respect of any balance on any insurance account that may be due to the broker from such person, unless when the debt was incurred the broker had reason to believe that such person was only an agent.  R.S.O. 1990, c. M.2, s. 54 (2).
55. Where a marine policy effected on behalf of the assured by a broker acknowledges the receipt of the premium, such acknowledgment is, in the absence of fraud, conclusive as between the insurer and the assured, but not as between the insurer and broker.  R.S.O. 1990, c. M.2, s. 55. Loss and Abandonment
56. (1) Subject to this Act and unless the policy otherwise provides, the insurer is liable for any loss proximately caused by a peril insured against, but, subject as aforesaid, the insurer is not liable for any loss that is not proximately caused by a peril insured against.  R.S.O. 1990, c. M.2, s. 56 (1). Idem (2) In particular, (a) the insurer is not liable for any loss attributable to the wilful misconduct of the assured, but, unless the policy otherwise provides, the insurer is liable for any loss proximately caused by a peril insured against, even though the loss would not have happened but for the misconduct or negligence of the master or crew; (b) unless the policy otherwise provides, the insurer on ship or goods is not liable for any loss proximately caused by delay, although the delay is caused by a peril insured against; (c) unless the policy otherwise provides, the insurer is not liable for ordinary wear and tear, ordinary leakage and breakage, inherent vice or nature of the subject-matter insured, or for any loss proximately caused by rats or vermin, or for any injury to machinery not proximately caused by maritime perils.  R.S.O. 1990, c. M.2, s. 56 (2).
57. (1) A loss may be either total or partial and any loss, other than a total loss as hereinafter defined is a partial loss.  R.S.O. 1990, c. M.2, s. 57 (1). Total loss (2) A total loss may be either an actual total loss or a constructive total loss.  R.S.O. 1990, c. M.2, s. 57 (2). Idem (3) Unless a different intention appears from the terms of the policy, an insurance against total loss includes a constructive as well as an actual total loss.  R.S.O. 1990, c. M.2, s. 57 (3). Recovery of partial loss (4) Where the assured brings an action for a total loss and the evidence proves only a partial loss, the assured may, unless the policy otherwise provides, recover for a partial loss.  R.S.O. 1990, c. M.2, s. 57 (4). Where goods incapable of identification (5) Where goods reach their destination in specie, but by reason of obliteration of marks, or otherwise, they are incapable of identification, the loss, if any, is partial and not total.  R.S.O. 1990, c. M.2, s. 57 (5).
58. (1) Where the subject-matter insured is destroyed or so damaged as to cease to be a thing of the kind insured, or where the assured is irretrievably deprived thereof, there is an actual total loss.  R.S.O. 1990, c. M.2, s. 58 (1). Notice of abandonment (2) In the case of an actual total loss no notice of abandonment need be given.  R.S.O. 1990, c. M.2, s. 58 (2).
59. Where the ship concerned in the adventure is missing and after the lapse of a reasonable time no news of it has been received, an actual total loss may be presumed.  R.S.O. 1990, c. M.2, s. 59.
60. Where, by a peril insured against, the voyage is interrupted at an intermediate port or place under such circumstances as, apart from any special stipulation in the contract of affreightment, to justify the master in landing and reshipping the goods or other movables, or in transshipping them, and sending them on to their destination, the liability of the insurer continues despite the landing or transshipment.  R.S.O. 1990, c. M.2, s. 60.
61. (1) Subject to any express provision in the policy, there is a constructive total loss where the subject-matter insured is reasonably abandoned on account of its actual total loss appearing to be unavoidable or because it could not be preserved from actual total loss without an expenditure that would exceed its value when the expenditure had been incurred.  R.S.O. 1990, c. M.2, s. 61 (1). Idem (2) In particular, there is a constructive total loss, (a) where the assured is deprived of the possession of a ship or goods by a peril insured against, and (i) it is unlikely that the assured can recover the ship or goods, as the case may be, or (ii) the cost of recovering the ship or goods, as the case may be, would exceed their value when recovered; or (b) in the case of damage to a ship, where it is so damaged by a peril insured against that the cost of repairing the damage would exceed the value of the ship when repaired, and in estimating the cost of repairs, no deduction is to be made in respect of general average contributions to those repairs payable by other interests, but account is to be taken of the expense of future salvage operations and of any future general average contributions to which the ship would be liable if repaired; or (c) in the case of damage to goods, where the cost of repairing the damage and forwarding the goods to their destination would exceed their value on arrival.  R.S.O. 1990, c. M.2, s. 61 (2).
62. Where there is a constructive total loss, the assured may either treat the loss as a partial loss or abandon the subject-matter insured to the insurer and treat the loss as if it were an actual total loss.  R.S.O. 1990, c. M.2, s. 62.
63. (1) Subject to this section, an assured who elects to abandon the subject-matter insured to the insurer must give notice of abandonment and if the assured fails to do so the loss can only be treated as a partial loss.  R.S.O. 1990, c. M.2, s. 63 (1). How given (2) Notice of abandonment may be given in writing or by word of mouth, or partly in writing and partly by word of mouth, and may be given in any terms that indicate the intention of the assured to abandon the insured interest in the subject-matter insured unconditionally to the insurer.  R.S.O. 1990, c. M.2, s. 63 (2). Idem (3) Notice of abandonment must be given with reasonable diligence after the receipt of reliable information of the loss, but where the information is of a doubtful character, the assured is entitled to a reasonable time to make inquiry.  R.S.O. 1990, c. M.2, s. 63 (3). Refusal to accept (4) Where notice of abandonment is properly given, the rights of the assured are not prejudiced by the fact that the insurer refuses to accept the abandonment.  R.S.O. 1990, c. M.2, s. 63 (4). Acceptance (5) The acceptance of an abandonment may be either express or implied from the conduct of the insurer and the mere silence of the insurer after notice is not an acceptance.  R.S.O. 1990, c. M.2, s. 63 (5). Irrevocable (6) Where notice of abandonment is accepted, the abandonment is irrevocable and the acceptance of the notice conclusively admits liability for the loss and the sufficiency of the notice.  R.S.O. 1990, c. M.2, s. 63 (6). Where unnecessary (7) Notice of abandonment is unnecessary where, at the time when the assured receives information of the loss, there would be no possibility of benefit to the insurer if notice were given.  R.S.O. 1990, c. M.2, s. 63 (7). Waived (8) Notice of abandonment may be waived by the insurer.  R.S.O. 1990, c. M.2, s. 63 (8). Where risk reinsured (9) An insurer who has reinsured a risk need not give notice of abandonment.  R.S.O. 1990, c. M.2, s. 63 (9).
64. (1) Where there is a valid abandonment, the insurer is entitled to take over the interest of the assured in whatever may remain of the subject-matter insured and all proprietary rights incidental thereto.  R.S.O. 1990, c. M.2, s. 64 (1). Idem (2) Upon the abandonment of a ship, the insurer thereof is entitled to any freight in course of being earned and which is earned by the ship subsequent to the casualty causing the loss, less the expenses of earning it incurred after the casualty, and, where the ship is carrying the owner’s goods, the insurer is entitled to a reasonable remuneration for the carriage of them subsequent to the casualty causing the loss.  R.S.O. 1990, c. M.2, s. 64 (2). Partial Losses (Including Salvage and General Average and Particular Charges)
65. (1) A particular average loss is a partial loss of the subject-matter insured, caused by a peril insured against, and which is not a general average loss.  R.S.O. 1990, c. M.2, s. 65 (1). Particular charges (2) Expenses incurred by or on behalf of the assured for the safety or preservation of the subject-matter insured, other than general average and salvage charges, are called particular charges and particular charges are not included in particular average.  R.S.O. 1990, c. M.2, s. 65 (2).
66. (1) Subject to any express provision in the policy, salvage charges incurred in preventing a loss by perils insured against may be recovered as a loss by those perils.  R.S.O. 1990, c. M.2, s. 66 (1). defined (2) “Salvage charges” means the charges recoverable under maritime law by a salvor independently of contract but do not include the expenses of services in the nature of salvage rendered by the assured or the assured’s agents or any person employed for hire by them for the purpose of averting a peril insured against, and such expenses, where properly incurred, may be recovered as particular charges or as a general average loss according to the circumstances under which they were incurred.  R.S.O. 1990, c. M.2, s. 66 (2).
67. (1) A general average loss is a loss caused by or directly consequential on a general average act and includes a general average expenditure as well as a general average sacrifice.  R.S.O. 1990, c. M.2, s. 67 (1). General average act (2) There is a general average act where any extraordinary sacrifice or expenditure is voluntarily and reasonably made or incurred in time of peril for the purpose of preserving the property imperilled in the common adventure.  R.S.O. 1990, c. M.2, s. 67 (2). General average contribution (3) Where there is a general average loss, the party on whom it falls is entitled, subject to the conditions imposed by maritime law, to a rateable contribution from the other parties interested, and such contribution is called a general average contribution.  R.S.O. 1990, c. M.2, s. 67 (3). General average expenditure, sacrifice (4) Subject to any express provision in the policy, where the assured has incurred a general average expenditure, the assured may recover from the insurer in respect of the proportion of the loss that falls upon the assured; and, in the case of a general average sacrifice, the assured may recover from the insurer in respect of the whole loss without having enforced the assured’s right of contribution from the other parties liable to contribute.  R.S.O. 1990, c. M.2, s. 67 (4). General average contribution, recovery (5) Subject to any express provision in the policy, where the assured has paid, or is liable to pay, a general average contribution in respect of the subject insured, the assured may recover therefor from the insurer.  R.S.O. 1990, c. M.2, s. 67 (5). Where insurer not liable for loss (6) In the absence of express stipulation, the insurer is not liable for any general average loss or contribution where the loss was not incurred for the purpose of avoiding, or in connection with the avoidance of, a peril insured against.  R.S.O. 1990, c. M.2, s. 67 (6). Where two interests owned by assured (7) Where ship, freight, and cargo, or any two of those interests, are owned by the same assured, the liability of the insurer in respect of general average losses or contributions is to be determined as if those subjects were owned by different persons.  R.S.O. 1990, c. M.2, s. 67 (7). Measure of Indemnity
68. (1) The sum that the assured can recover in respect of a loss on a policy of insurance, in the case of an unvalued policy to the full extent of the insurable value, or in the case of a valued policy to the full extent of the value fixed by the policy, is called the measure of indemnity.  R.S.O. 1990, c. M.2, s. 68 (1). Idem (2) Where there is a loss recoverable under the policy, the insurer, or each insurer if there is more than one, is liable for such proportion of the measure of indemnity as the amount of the insurer’s subscription bears to the value fixed by the policy in the case of a valued policy or to the insurable value in the case of an unvalued policy.  R.S.O. 1990, c. M.2, s. 68 (2).
69. Subject to this Act and to any express provision in the policy, where there is a total loss of the subject-matter insured, (a) if the policy is a valued policy, the measure of indemnity is the sum fixed by the policy; (b) if the policy is an unvalued policy, the measure of indemnity is the insurable value of the subject-matter insured.  R.S.O. 1990, c. M.2, s. 69.
70. Where a ship is damaged but is not totally lost, the measure of indemnity, subject to any express provision in the policy, is as follows: 1. Where the ship has been repaired, the assured is entitled to the reasonable cost of the repairs, less the customary deduction, but not exceeding the sum insured in respect of any one casualty. 2. Where the ship has been only partially repaired, the assured is entitled to the reasonable cost of such repairs, computed as above, and also to be indemnified for the reasonable depreciation, if any, arising from the unrepaired damage, provided that the aggregate amount shall not exceed the cost of repairing the whole damage, computed as above. 3. Where the ship has not been repaired and has not been sold in its damaged state during the risk, the assured is entitled to be indemnified for the reasonable depreciation arising from the unrepaired damage, but not exceeding the reasonable cost of repairing such damage, computed as above.  R.S.O. 1990, c. M.2, s. 70.
71. Subject to any express provision in the policy, where there is a partial loss of freight, the measure of indemnity is such proportion of the sum fixed by the policy in the case of a valued policy, or of the insurable value in the case of an unvalued policy, as the proportion of freight lost by the assured bears to the whole freight at the risk of the assured under the policy.  R.S.O. 1990, c. M.2, s. 71.
72. Where there is a partial loss of goods, merchandise, or other movables, the measure of indemnity, subject to any express provision in the policy, is as follows: 1. Where part of the goods, merchandise, or other movables insured by a valued policy is totally lost, the measure of indemnity is such proportion of the sum fixed by the policy as the insurable value of the part lost bears to the insurable value of the whole, ascertained as in the case of an unvalued policy. 2. Where part of the goods, merchandise, or other movables insured by an unvalued policy is totally lost, the measure of indemnity is the insurable value of the part lost, ascertained as in case of total loss. 3. Where the whole or any part of the goods or merchandise insured has been delivered damaged at its destination, the measure of indemnity is such proportion of the sum fixed by the policy in the case of a valued policy, or of the insurable value in the case of an unvalued policy, as the difference between the gross sound and damaged values at the place of arrival bears to the gross sound value. 4. “Gross value” means the wholesale price or, if there is no such price, the estimated value, with, in either case, freight, landing charges, and duty paid beforehand; provided that, in the case of goods or merchandise customarily sold in bond, the bonded price is deemed to be the gross value. 5. “Gross proceeds” means the actual price obtained at a sale where all charges on sale are paid by the sellers.  R.S.O. 1990, c. M.2, s. 72.
73. (1) Where different species of property are insured under a single valuation, the valuation must be apportioned over the different species in proportion to their respective insurable values, as in the case of an unvalued policy. The insured value of any part of a species in such proportion of the total insured value of the same as the insurable value of the part bears to the insurable value of the whole, ascertained in both cases as provided by this Act.  R.S.O. 1990, c. M.2, s. 73 (1). Idem (2) Where a valuation has to be apportioned and particulars of the prime cost of each separate species, quality, or description of goods cannot be ascertained, the division of the valuation may be made over the net arrived sound values of the different species, qualities, or descriptions of goods.  R.S.O. 1990, c. M.2, s. 73 (2).
74. (1) Subject to any express provision in the policy, where the assured has paid, or is liable for, any general average contribution, the measure of indemnity is the full amount of such contribution, if the subject-matter liable to contribution is insured for its full contributory value; but, if such subject-matter is not insured for its full contributory value, or if only part of it is insured, the indemnity payable by the insurer must be reduced in proportion to the under-insurance, and where there has been a particular average loss that constitutes a deduction from the contributory value, and for which the insurer is liable, that amount must be deducted from the insured value in order to ascertain what the insurer is liable to contribute.  R.S.O. 1990, c. M.2, s. 74 (1). Extent of liability (2) Where the insurer is liable for salvage charges, the extent of the insurer’s liability must be determined on the like principle.  R.S.O. 1990, c. M.2, s. 74 (2).