1. Marine insurance defined
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.
2. Mixed sea and land risks
(1) A contract of marine insurance may, by its express terms, or by usage of trade, be extended so as to protect the assured against losses on inland waters or on any land risk which may be incidental to any sea voyage.
(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, the provisions of this Act, in so far as applicable, shall apply thereto, but, except as by this section provided, nothing in this Act shall alter or affect any rule of law applicable to any contract of insurance other than a contract of marine insurance as by this Act defined.
3. Marine adventure and maritime perils defined
(1) Subject to the provisions of this Act, every lawful marine adventure may be the subject of a contract of marine insurance.
(2) In particular there is a marine adventure where ?
(a) Any ship goods or other moveables are exposed to maritime perils. 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.
“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 detainment’s of princes and peoples, jettisons, barratry, and any other perils, either of the like kind or which may be designated by the policy.