INSURABLE INTEREST SHIP HYPOTHECATED BY BOTTOMRY Freightage signifies all the

Insurable interest ship hypothecated by bottomry

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INSURABLE INTEREST SHIP HYPOTHECATED BY BOTTOMRY
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Freightage - signifies all the benefits derived by the owner, either from the chartering of the ship or its employment for the carriage of his own goods or those of others. (Sec 104, IC) The owner of a ship has an insurable interest in expected freightage. (Sec 105, IC) One who has an interest in the thing from which profits are expected to proceed has an insurable interest in the profits. (Sec 107, IC) Ship owner has no insurable interest in the freight whether the vessel is lost or not. INSURABLE INTEREST ON FREIGHTAGE
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The ship owner s insurable interest on expected freightage exists from the time the ship has broken ground on the chartered voyage. In case the vessel is employed for the carriage of goods without a charter party, the ship owner s insurable interest on expected freightage exists when the goods are actually on board or there is some contract putting them on board, and both vessel and goods are ready for the specified voyage. INSURABLE INTEREST ON FREIGHTAGE
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One who has an interest in the thing from which profits are expected to proceed has an insurable interest in the profits. (Sec 107, IC) Ship owner has no insurable interest in the freight whether the vessel is lost or not. The owner of a cargo or merchandise transported by a vessel has an insurable interest not only on the merchandise but also on the expected profits from the future sale of the merchandise which may be adversely affected by the perils of the sea. INSURABLE INTEREST FREIGHTS & EXPECTED PROFITS
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Charterer - a person who reserves a ship, bus or other mode of transportation for his personal use or for the use of others. The charterer of a ship has insurable interest in the ship to the extent that the charter is liable to be damnified by its loss. INSURABLE INTEREST OF THE CHARTERER SEC 108, IC
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Rules on concealment in marine insurance are stricter than that of any insurance. To constitute concealment, it is sufficient that the insured is in possession of the material fact concealed although he may not be aware of it. The insured is bound to communicate the information of the belief or expectation of a third person in reference to a material fact. (Sec 110, IC) Presumption is there is prior knowledge created if the information might possibly reach him in the usual mode of transmission & rate of communication. (Sec 111, IC) CONCEALMENT
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Concealment of the following matters does not avoid the policy but merely exonerates the insurer from loss resulting from the specific matter concealed: National character of the insured Liability of the thing insured to capture & detention Liability to seizure from breach of foreign laws of trade Want of necessary documents Use of false and simulated papers CONCEALMENT OF CERTAIN MATTERS DO NOT AVOID THE POLICY SEC 112, IC
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A misrepresentation in marine insurance to entitle the insurer to rescind the contract must be intentionally false in any material respect or in respect of any fact on which the character and nature of the risk depends. (Sec 113, IC)
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