CHAPTER XXV

THE NATURE OF THE RISK ASSUMED AND THE PERILS INSURED AGAINST

THE general description of the subject matter insured and the character and duration of the voyage are usually set forth in the opening words of the policy. No uniform wording has been adopted by all the companies in this respect, yet as representative of the conditions usually provided, the following form is given as typical of American vessel policies:

BY THE

be paid to

cause..

on account of

to be insured, lost or not lost, at and from the

191.., at noon, until the

day of

day of 191.., noon. If on a passage at the expiration of the term, with liberty to renew the policy, for one, two, or three months, at the same rate of premium, if application be made to the company on or before the expiration of the first term. The risk, however, is to terminate at any port at which she may first arrive during the said extended time, on her being moored therein twenty four hours in good safety; a pro rata premium to be returned for each entire month not entered of the extended time, there being no loss or other claims made. (Then may follow certain warranties and agreements.)

upon the body, tackle, apparel, and other whereof is master or whoever else shall

furniture of the good ...... called the for this present voyage

........

go for master in the said vessel, or by whatever other name, or names, the said vessel, or the master thereof, is or shall be named or called.

And it shall and may be lawful for the said vessel in her voyage to proceed and sail to, touch, and stay at any ports or places,

if thereunto obliged by stress of weather or other unavoidable accident, without prejudice to this insurance. The said vessel, tackle, etc., hereby insured, are valued at

without

any further account to be given by the assured to the assurers, or any of them, for the same.

In the case of cargo and freight policies, while the form is similar to that mentioned above, the following provision is usually made with reference to the beginning and termination of the risk: "Beginning the adventure upon the said goods and merchandise as aforesaid, from and immediately following the loading thereof on board the said vessel and to continue during the voyage aforesaid, until the property is landed."

The first features to attract attention in the above extract of the policy are the two expressions, "lost or not lost❞ and "at and from. Both were introduced very early into marine policies, and both serve a distinct purpose. The object of the first phrase originally was to provide for those cases where the safety of the vessel was feared because of its having long been overdue and unheard from (a very common occurrence before the introduction of steam power, the telegraph, and modern postal communication), and where insurance is, therefore, especially desired. Such cases occur even to-day, and it also frequently happens that the owner of goods may have them exposed to the perils covered by a marine policy before he knows of their having been shipped, or before he has had opportunity to insure them. The real object of the phrase is to have the policy cover a risk irrespective of the condition or position in which the ship or cargo may be at the time when the insurance is effected. To make the contract valid, however, both insured and underwriter must be in possession of the same facts, and neither must have knowledge concerning the condition of the risk.

In explanation of the second phrase, "at and from," it is important to note that there is a decided difference be

tween insuring a ship and cargo "from" a port and insuring it “at and from" that port. The first insurance would cover a vessel, for example, only from the moment when it departs on her voyage, while the "at and from" insurance would cover the vessel not only while on the voyage, but also at the port of departure before leaving. In case this is the home port, the insurance takes effect as soon as placed, and protects the vessel during the period of preparation for the voyage. In case the port is one at which the vessel has not yet arrived, the insurance commences with the arrival of the vessel at that port, if in safe condition.

Following the phrases just noted, there are blank spaces for the insertion of the voyage, the period of time over which the insurance extends, the name of the vessel, and the general description and valuation of the subject matter insured. The presumption is that the voyage will cover the usual route, and will be prosecuted without delay. If the policy is a time policy, the date and hour when the insurance commences and ends must be specifically stated. In the case of goods and merchandise, it is expressly provided that the policy covers immediately after they are loaded on board the vessel and continues during the voyage until safely landed. But where it is necessary to employ lighters in the process of loading, the risk of lighterage, except where otherwise provided, is also covered. In the case of a vessel, the insurance either commences "from" or "at and from" a port, and ends twenty-four hours after the arrival and safe mooring of the same, at the port of destination. With respect to freight (the earnings of the ship for conveying the cargo), the insurance covers from the port of loading to the time when the cargo is safely landed; while in the case of a charter the insurance begins when it is effected, and continues, irrespective of the fact that the vessel must load at another port, until the landing of the cargo.

With respect to the valuation of the subject matter in