Page:Encyclopædia Britannica, Ninth Edition, v. 13.djvu/196

184 INSURANCE [MARINE. On the continent of Europe the practice of life assur ance has nut as yet become so widespread as in English- speaking countries. There are assurance companies in various Continental countries, but it is chiefly in France and Germany that any extensive development of the system has taken place. In France- life assurance was later in taking root than in Great Britain, and its development has been much slower. There are, however, several large and solid life offices in that country dating back for a considerable period, besides a number of more recent growth, and the business is now making remarkable progress. The oldest French company, La Campagnie d Assurances Gene" rales, founded in 1819, issued in the year 1880 policies to the amount of 81,000,000 francs, a year s business unequalled in magnitude in the experience of any British office. The following figures, taken from the Moniteur des Assurances, shows the rapid increase of business among the French life offices in recent years. They represent the total amount of new assurances effected in each year : Francs. 1875 254,000,000 1876 284,000,000 1877 278,000,000 Francs. 1878 315,000,000 1879 337,000,000 1880 435,000,000 There are now twenty companies in France, the aggregate of whose existing assurances must considerably exceed 2,000,000,000 francs. Germany. In Germany (including German Austria and German Switzerland) there are fifty companies transacting life assurance business, whose aggregate new assurances in the year 1879 amounted to 275,787,828 marks. At the end of that year the number of lives assured was 797,343, for sums amounting to 2,534,704,076 marks. There is now in progress an extensive investigation as to the mortality of assured lives in Germany, to which upwards of twenty Ger man offices have contributed their experience. (G. M. L.) III. MARINE INSURANCE. Defini- Marine insurance is a contract by which one party, the tion. insurer" or " underwriter," engages for a stipulated pre mium to protect another party, the " assured," against loss arising from certain perils, or sea risks, to which his ship, goods, or other interest may be exposed during a specified voyage or period of time. The The policy of insurance, or instrument which contains policy. the contract, is a printed form, with spaces left blank for the insertion in writing of the particulars of the agree ment. The form in general use appears to have been introduced with the earliest practice of British marine insurance. Although worded in a confused and ambigu ous manner, its meaning has been clearly defined by a series of legal decisions on the debatable points ; and in all cases the written conditions overrule any of the printed clauses that might seem inconsistent with them. Stamp The stamping of policies is at present regulated chiefly by Act. the Customs and Inland Revenue Act, 1867, 30 Viet, c, 23. This Act provides that no contract or agreement for sea insurance shall be valid unless expressed in a policy ; that all policies must be stamped before signature ; that no policy shall be pleaded or admitted as evidence iu any court, unless duly stamped ; and that no policy can be made for any time exceeding twelve months. The stamp duties are On Voyage Policies. For every 100 insured and for any fractional part of 100, 3d. On Time Policies. For every 100 insured, and for any fractional part of 100, where the time does not exceed six months, 3d. ; where the time exceeds six months, and does not exceed twelve months, 6d. If the separate interests of two or more persons be in* sured in one policy the stamp must cover each fractional part of 100, in the amounts of such separate interests, as if it were a full sum of 100. Where insurance is made for a voyage, and also for time, or to cover any time beyond twenty-four hours after the ship s arrival at her destination, the policy is chargeable with duty as a voyage policy, and also with duty as a time policy. The penalty exigible from any person engaged in effecting or sub scribing policies which have not been duly stamped is 100. By the Act 33 & 34 Viet. c. 97, 117, it is provided that policies made abroad, but in any manner enforceable within the United Kingdom, are liable to the duty, and may be stamped at any time within two months after they have first been received in the United Kingdom, Further, by the Act 39 Viet. c. 6, 2, it is now provided that, for the purpose of being given in evidence, any policy may be stamped after execution, on payment of the penalty of 100. In practice it is usually desirable to conclude an agree- Tl ment for insurance at once, lest some subsequent intelligence should induce either party to recede ; and it is customary for the underwriter to sign a " slip," or short memorandum of the insurance, until the stamped policy can be completed. But such memorandums, however obligatory in good faith, are not legally binding. The assured, however, is under no obligation to communicate to the underwriter a material fact coming to his knowledge between the date of the slip and that of the policy. And, when a valid policy exists, the slip is admissible in evidence to throw light on the circumstances under which the risk was offered and accepted. In order to give validity to the contract, it is necessary Fc that the assured have a right of property, or " interest," ) vi in the thing assured. A policy without interest is held to m be a wager ; and it is declared by the 19th Geo. II. c. 37 that policies bearing the words " interest or no interest," or " without further proof of interest than the policy," or " without benefit of salvage to the insurer," or any policies made by way of gambling or wagering, shall be null and void. The expected profits of a sea adventure may be included in the value of the property for insurance ; but an unwarrantable or fraudulent over-valuation might render the policy void even in respect of the value actually proved. By the Act 31 & 32 Viet. c. 86 it is provided that, A " whenever a policy of insurance on any ship, or on any m goods in a ship, or on any freight, has been assigned so as 1)( to pass the beneficial interest in such policy to any person entitled to the property thereby insured, the assignee of such policy shall be entitled to sue thereon in his own name, and the defendant in any action shall be entitled to make any defence which he would have been entitled to make if the said action had been brought in the name of the person by whom, or on whose account, the policy had been effected." A valued policy is one which contains a specific valuation V of the interest insured. This valuation forms an essential P ( element in the adjustment of all claims under the policy, and cannot be set aside except on the ground of fraud. The burden of proof, in any averment of fraudulent over valuation, lies on the underwriter. An open policy is one in which the value of the interest insured is not specified. In claims under such policies the 1" assrred must prove the value of the thing insured. The value of a ship for insurance is what she is actually worth at the commencement of the voyage, including all her stores, provisions, and outfit, money advanced for seamen s wages, and costs of insurance. The difficulty of proving a