Marine Insurance Act (S.C. 1993, c. 22)

Double Insurance

Marginal note:Double insurance where over-insured

• 86 (1) An insured is over-insured by double insurance if two or more marine policies are effected by or on behalf of the insured on the same marine adventure and interest or part thereof and the sums insured exceed the indemnity allowed by this Act.

• Marginal note:Where over-insurance

  (2) An insured who is over-insured by double insurance

  • (a) may claim payment from the insurers in any order, unless the marine policy under which the claim is made provides otherwise, but may not receive more than the indemnity allowed by this Act;

  • (b) if claiming under a valued policy, shall give credit, as against the value specified in the policy, for any sum received by the insured under any other policy without regard to the actual value of the subject-matter insured;

  • (c) if claiming under an unvalued policy, shall give credit, as against the full insurable value, for any sum received by the insured under any other policy; and

  • (d) is deemed to hold any sum received in excess of the indemnity allowed by this Act in trust for the insurers, according to their right of contribution among themselves.

Marginal note:Right of contribution

• 87 (1) Where an insured is over-insured by double insurance, each insurer is liable, as between the insurer and the other insurers, to contribute rateably to the payment of a loss in proportion to the amount for which the insurer is liable under the insurer’s contract.

• Marginal note:Remedies for overcontribution

  (2) An insurer who contributes more to the payment of a loss than required by subsection (1) is entitled to bring an action against the other insurers for contribution and to such other remedies as a surety is entitled to for paying more than the surety’s proportion of a debt.

Under-insurance

Marginal note:Under-insurance

88 Where an insured is insured for a sum that is less than the insurable value of the subject-matter insured, in the case of an unvalued policy, or less than the value of the subject-matter insured specified by the policy, in the case of a valued policy, the insured is deemed to be self-insured in respect of the uninsured difference.

Mutual Insurance

Marginal note:Mutual insurance

• 89 (1) Mutual insurance is insurance whereby two or more persons mutually agree to insure one another against marine losses.

• Marginal note:Application of Act

  (2) Subject to subsections (3) and (4), this Act applies in respect of mutual insurance.

• Marginal note:Premium

  (3) The provisions of this Act relating to premiums do not apply in respect of mutual insurance, but a guarantee, or such other arrangement as may be agreed on, may be substituted for the premium for mutual insurance.

• Marginal note:Amendment by mutual insurance association

  (4) The provisions of this Act may, in the case of mutual insurance effected by an association, be modified by a marine policy issued by the association, or by the rules and regulations of the association, to the extent that the provisions may be modified by agreement of the parties to the insurance.

General

Marginal note:Exclusion or variation of rights, duties or liabilities

90 Any right, duty or liability that arises under a contract by implication of law, or that is established by this Act and may be lawfully modified by the parties to a contract, may be negated or varied by express agreement or by usage of the trade if the usage binds both parties to the contract.

Marginal note:Question of fact

91 Any question as to what constitutes a reasonable time, a reasonable premium or reasonable diligence for the purposes of this Act is a question of fact.