750. If the insurance is made by the captain or the owner of the things insured who is actually on board the ship carrying them, such persons must always, unless there is an express agreement to the contrary, retain 10 per cent. at their own risk.

B. Bk. II., 174, 175 diff., P. 599.

751. In an insurance on ship it is understood that the insurance only covers four-fifths of the total value, and that the assured takes the risk of the remaining one-fifth unless the contrary is expressly stated in the policy. In this case, and in the case of the preceding Article, the amount of money borrowed on bottomry must be deducted from the sum insured.

F. 347 (1885), G. 799 diff., H. 602 diff., Sw. 198.

752. The underwriting of a policy establishes a presumption in law that the insurers admit as accurate the valuation of the things insured contained in it, except in case of fraud or intent to deceive.

If the valuation appears to be excessive, the following proceedings are to be taken.

If the exaggeration has arisen from mistake and not from the intention of the assured, the insurance will be reduced to its true value fixed by agreement of the parties, or by experts, and the insured will repay the excess of premium received, retaining, however, half per cent. of such excess.

If the exaggeration is fraudulent on the part of the assured, and the insurer proves the fact, the insurance is void as far as concerns the assured, and the insurer keeps the premium, without prejudice to suitable criminal proceedings. B. Bk. II., 169, 188, F. 336, 357, 358, G. 790, 797, 900, H. 253, 274, 275, 619622, I. 428, 612, Sw. 196.

Arn. 296, 299, 332.

753. The exchange into the coin of the realm, when the policy has been made abroad, will be reckoned at the

current rate at the time and place where the policy was signed.

B. Bk. II., 170, F. 338, I. 613.

754. If at the time the contract is entered into a valuation of the articles assured has not been made, it will be determined as follows:

(1.) By the invoices of the goods.

(2.) By the declaration of brokers or experts who will base their judgment on the price of the goods at the port of departure, and adding thereto the expenses of loading, freight and customs duty.

If the insurance be on goods to be brought back from a place where trade is only carried on by barter, the valuation will be made on that of the goods bartered at their port of departure with all expenses added thereto.

B. Bk. II., 171, 887, F. 338-340, G. 803, 888, H. 273, 621-623, Sw. 197, 201. Arn. 318.

(III.)

The Reciprocal Duties of the Assured and Insurer. 755. Insurers indemnify loss and damages sustained by the articles insured from any of the following causes :(1.) Stranding or grounding either with or without

breaking up, (2) Storms, (3) Shipwreck, (4) Accidental Collisions, (5) Change of voyage or vessel, (6) Jettison, (7) Fire or explosion, if occurring to goods whether on board or stored on shore, always provided they have been so stored by a competent authority for the purpose of repairing the ship, or for the benefit of the cargo, or fire from spontaneous combustion in the bunkers of steam-vessels, (8) Capture, (9) Piratical Seizure, (10) Declaration of War, (11) Embargo by order of Government, (12) Detention by order of a Foreign Power, (13) Reprisals, (14) All other accidents and perils of the sea. The contracting parties may stipulate for such

exceptions as seem good to them, provided they are mentioned in the policy, without which requisite they have no effect.

B. Bk. II., 178-181 diff., F. 350, G. 824, H. 637, I. 615, 616, P. 604, R. 1227,

Sw. 223.

Arn. 744-756.

756. Insurers are not answerable for damages and losses sustained by the things assured from any of the following causes, even though not excluded by the terms of the policy :

(1.) A voluntary deviation in the voyage, or a change of ship, without the express consent of the insurers.

(2.) A voluntary separation from convoy when it has been stipulated that the ship should sail under its protection.

(3.) An extension of the voyage to a more distant port than that named in the policy.

(4.) Arrangements wilfully made contrary to the charterparty or bill of lading, by order of the charterer, shippers, or freighters.

(5.) Barratry of the master, unless it is a risk insured against.

(6.) Leakage, waste, and loss arising from the nature of the things insured.

(7.) The want of the papers prescribed by this Code, by Orders and Regulations of the Marine or of Navigation, or any other species of omission on the part of the captain in disobedience to administrative regulations, unless barratry of the master is included in risk taken by the insurer. In any case the insurers have earned the premium as soon as they have commenced to run the risk.

B. Bk. II., 182 184 diff., 185, F. 351-353, 364, G. 825, H. 638-643, 1.615, 617 618, 623, P. 604, 608, 612, 614, R. 1255, 1257, Sw. 224, 219.

Arn. 450, 620, 774, 13,626.

757. In case of policies on cargo for a round voyage, if the assured does not get any return cargo or less than two-thirds, the premium on the return voyage will be reduced in proportion to the cargo carried, with an allowance to the insurer of per cent. on the deficiency. Nevertheless, where the outward cargo is lost, the premium is not reduced unless in virtue of a special agreement modifying the terms of this Article.

B. Bk. II., 186, F. 356, I. 620, P. 609, R. 1257.

Arn. 1104.

758. If the cargo is insured by several insurers in distinct parts, but without special definition of the objects insured, the indemnity will be paid in case of loss or damage by all the insurers pro rata on the quantity insured by each. F. 360, G. 791, H. 277 diff., I. 608, Sw. 192, 195.

Arn. 328.

759. If several ships are named as carriers of the insured goods, but the amount shipped in each is not stated, the assured may divide the shipments as may be most convenient, or place them all in one vessel without affecting the liability of the insurer. But if the quantity shipped in each vessel is stated, and the shipments are different from those stated for each, the insurer incurs no liability beyond that he has contracted for each vessel. Nevertheless, he will receive per cent. on the value of that which has been shipped over and above the agreed quantity.

If one of the vessels gets nothing of the cargo, the policy is null as regards that vessel, making the allowance abovementioned of per cent. on the excess shipped in the other vessels.

B. Bk. II., 194, F. 361, G. 820, 821, H. 652, I. 621, P. 610, R. 1265, Sw. 215. 760. If, in consequence of the unseaworthiness of the ship, the cargo is transshipped into another vessel before. sailing, the insurers may choose whether they will continue the policy or not, on making good the damages sustained,

but if the unseaworthiness occurs after the voyage is commenced, the insurers take the risk, even if the (substituted) vessel be of a different burthen and flag from that stated in the policy.

B. Bk. II., 178, 182, G. 820.

761. If the period during which the insurer takes the risk is not specified in the policy, that laid down in Art. 733 as to bottomry loans will be observed.

B. Bk. II., 172, F. 341, G. 827–833, H. 624-634, I. 611, P. 602, R. 1242, Sw. 235.

Arn. 377-389.

762. In insurances for a fixed time (i.e., time policies) the liability of the insurer ceases at the moment the stipulated time expires.

F. 363, G. 834, 835 diff., I. 611, Sw. 241.

Arn. 371, 373.

763. If for the convenience of the assured the goods are discharged at a nearer port than that mentioned in the policy for the termination of the voyage, the insurer has his agreed premium without any rebate.

B. Bk. II., 195, F. 364, G. 832, H. 653, I. 623, P. 612.

Arn. 427-429.

764. Calls at ports which are necessary for the preservation of the ship or its cargo are deemed to be covered by the policy unless they are expressly excluded.

G. 831, I. 615.

Arn. 242.

765. The assured must communicate to the insurer news relating to the progress of the vessel insured, and damages and losses that the articles insured may suffer, by the first mail after he receives them, and by telegraph if there is one, and will be liable for damages and injuries occasioned by his failing to do so.

B. Bk. II., 206, F. 374, G. 822, H. 654, I. 626, P. 615, R. 1244, Sw. 208, 221. Arn. 591.

766. If goods insured on the account of the captain who commands the vessel in which they are shipped are lost,