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MARINE INSURANCE ACT.

ARRANGEMENT OF SECTIONS

   Section

PART I
PRELIMINARY.

   1.   Short title.

   2.   Interpretation.

PART II
MARINE INSURANCE.

   3.   Marine insurance defined.

   4.   Marine adventure defined.

PART III
INSURABLE INTEREST.

   5.   Insurable interest defined.

   6.   When interest must attach.

   7.   Defeasible or contingent interest.

   8.   Partial interest.

   9.   Re-insurance.

   10.   Bottomry.

   11.   Master's and seamen's wages.

   12.   Advance freight.

   13.   Charges of insurance.

   14.   Quantum of interest.

   15.   Assignment of interest.

PART IV
INSURABLE VALUE.

   16.   Measure of insurable value.

PART V
DISCLOSURE AND REPRESENTATIONS.

   17.   Insurance is uberrimae fidei.

   18.   Disclosure by the assured.

   19.   Disclosure by agent or broker effecting insurance.

   20.   Representations pending negotiation of contract.

   21.   When contract deemed to be concluded.

PART VI
THE POLICY.

   22.   Contract to be embodied in policy.

   23.   What the policy must specify.

   24.   Signature of insurer.

   25.   Voyage and time policies.

   26.   Designation of subject matter.

   27.   Valued policy.

   28.   Unvalued policy.

   29.   Floating policy by ship or ships.

   30.   Construction of terms in policy.

   31.   Premium to be arranged.

PART VII
DOUBLE INSURANCE.

   32.   Double insurance.

PART VIII
WARRANTIES, ETC.

   33.   Nature of warranty.

   34.   When breach of warranty excused.

   35.   Express warranties.

   36.   Warranty of neutrality.

   37.   No implied warranty of nationality.

   38.   Warranty of good safety.

   39.   Warranty of seaworthiness of ship.

   40.   No implied warranty that goods are seaworthy.

   41.   Warranty of legality.

PART IX
THE VOYAGE.

   42.   Implied condition as to commencement of risk.

   43.   Alteration of port of departure.

   44.   Sailing for different destination.

   45.   Change of voyage.

   46.   Deviation.

   47.   Several ports of discharge.

   48.   Delay in voyage.

   49.   Excuses for deviation or delay.

PART X
ASSIGNMENT OF POLICY.

   50.   When and how policy is assignable.

   51.   Assured who has no interest cannot assign.

PART XI
THE PREMIUM.

   52.   When premium payable.

   53.   Policy effected through broker.

   54.   Effect of receipt on policy.

PART XII
LOSS AND ABANDONMENT.

   55.   Included and excluded losses.

   56.   Partial and total loss.

   57.   Actual total loss.

   58.   Missing ship.

   59.   Effect of transshipment, etc.

   60.   Constructive total loss defined.

   61.   Effect of constructive total loss.

   62.   Notice of abandonment.

   63.   Effect of abandonment.

PART XIII
PARTIAL LOSSES (INCLUDING SALVAGE GENERAL AVERAGE AND PARTICULAR CHARGES).

   64.   Particular average loss.

   65.   Salvage charges.

   66.   General average loss.

PART XIV
MEASURE OF INDEMNITY.

   67.   Extent of liability of insurer for loss.

   68.   Total loss.

   69.   Partial loss of a ship.

   70.   Partial loss of freight.

   71.   Partial loss of goods, merchandise, etc.

   72.   Apportionment of valuation.

   73.   General average contributions and salvage charges.

   74.   Liabilities to third parties.

   75.   General provisions as to measure of indemnity.

   76.   Particular average warranties.

   77.   Successive losses.

   78.   Suing and labouring clause.

PART XV
RIGHT OF INSURER ON PAYMENT.

   79.   Right of subrogation.

   80.   Right of contribution.

   81.   Effect of under insurance.

PART XVI
RETURN OF PREMIUM.

   82.   Enforcement of return.

   83.   Return by agreement.

   84.   Return for failure of consideration.

PART XVII
MUTUAL INSURANCE.

   85.   Modification of Act in case of mutual insurance.

PART XVIII
MISCELLANEOUS.

   86.   Ratification by assured.

   87.   Implied obligations varied by agreement or usage.

   88.   Reasonable time, etc. a question of fact.

   89.   Slip as evidence.

   90.   Avoidance of wagering or gaming contracts.

   91.   Prohibition of gambling on loss by maritime perils.

   92.   Minister's power to amend First Schedule.

   93.   Savings for other laws.

      First Schedule   Currency point.

      Second Schedule   Rules for construction of policy

MARINE INSURANCE ACT.

   An Act to make provision in Uganda in relation to Marine Insurance.

Commencement: 10 February, 2006.

PART I
PRELIMINARY.

1.   Short title.

   This Act may be cited as the Marine Insurance Act.

2.   Interpretation.

   In this Act unless the context otherwise requires—

   "abandonment" means the surrender, relinquishment, disclaimer, or cession of property or of rights or the voluntary relinquishment of all right, title, claim and possession, with the intention of not reclaiming it;

   "action" includes suit, counterclaim and setoff;

   "barratry" means an act committed by a master or mariners of a vessel for some fraudulent or unlawful purpose contrary to their duty to the owner and resulting in injury to the owner;

   "bottomry" means a contract by which the owner of a ship borrows for use, equipment, or repair of the vessel, and for a definite term, and pledges the ship or the keel or bottom of the ship or part of it as security, it being stipulated that if the ship is lost in the specified voyage, or during the limited time, by any of the perils enumerated, the lender shall lose his or her money;

   "contingent interest" means an interest which depends for its effect upon an event which may or may not happen;

   "currency point" has the meaning assigned to it in the First Schedule to this Act;

   "defeasible interest" means an insurable interest which ceases during the currency of the voyage;

   "floating policy" has the meaning assigned to it in section 29;

   "freight" includes the profit derivable by a shipowner from the employment of his or her ship to carry his or her own goods or movables as well as freight payable by a third party, but does not include passage money;

   "hypothecation" means the pledging of property as security or collateral for a debt;

   "insurable property" means any ship or movables capable of being insured against maritime perils;

   "maritime perils" means the perils consequent on or incidental to the navigation of the sea and inland waters, namely, perils of the seas and inland waters, fire, war, pirates, rovers, thieves, captures, seizures, restraints and detainment of foreign governments and peoples, jettisons and barratry, and any other perils of the like kind or which may be designated by the policy and perils of land incidental to sea voyage;

   "Minister" means the Minister to whom the functions of the Minister under this Act have been assigned by the President;

   "movables" means any movable tangible property other than the ship, including money, valuable securities and other documents;

   "mutual assurance" has the meaning assigned to it by section 85;

   "policy" means a policy expressing a contract of marine insurance;

   "respondentia" means hypothecation of the cargo or goods on board a ship as security for the repayment of a loan.

PART II
MARINE INSURANCE.

3.   Marine insurance defined.

   (1) A contract of marine insurance is a contract by which the insurer undertakes to indemnify the assured, in a manner and to an extent agreed under the contract, against the losses incidental to marine adventure.

   (2) 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 or air risk which may be incidental to any sea voyage.

   (3) Where a ship in the course of building, or the launch of a ship or any adventure analogous to a marine adventure, is covered by a policy, this Act applies to it so far as it may, but, except so far as this section provides, this Act does not alter or affect any rule of law applicable to any contract of insurance other than a contract of marine insurance.

4.   Marine adventure defined.

   (1) Subject to 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 insurable property is exposed to maritime perils;

   (b)   the earning or acquisition of any freight, passage money, commission, profit or other pecuniary benefit, or the security for any advances, loan disbursements, is endangered by the exposure of insurable property to maritime perils; or

   (c)   any liability to a third party may be incurred by the owner of, or the other person interested in or responsible for, insurable property, by reason of maritime perils.

PART III
INSURABLE INTEREST.

5.   Insurable interest defined.

   (1) Subject to this Act, every person has an insurable interest who is interested in a marine adventure.

   (2) In particular, a person is interested in a marine adventure where he or she stands in any legal or equitable relation to the adventure or to any insurable property at risk in it, in consequence of which he or she may benefit by the safety or due arrival of the insurable property, or may be prejudiced by its loss, or by damage to it, or by the detention of it, or may incur liability in respect of it.

6.   When interest must attach.

   (1) The assured must be interested in the subject matter insured at the time of the loss, though he or she need not be interested when the insurance is effected.

   (2) Where the subject matter is insured "lost or not lost" the assured may recover although he or she may not have acquired his or her interest until after the loss, unless at the time of effecting the contract of insurance the assured was aware of the loss and the insurer was not.

   (3) Where the assured has no interest at the time of the loss, he or she cannot acquire interest by any act or election after he or she is aware of the loss.

7.   Defeasible or contingent interest.

   (1) A defeasible interest and a contingent interest are insurable.

   (2) In particular, where the buyer of goods has insured them, he or she has an insurable interest, even though he or she might at his or her election, have rejected the goods, or have treated them as at the seller's risk, by reason of the latter's delay in making delivery or otherwise.

8.   Partial interest.

   A partial interest of any nature is insurable.

9.   Reinsurance.

   (1) The insurer under a contract of marine insurance has an insurable interest in his or her risk, and may reinsure in respect of it.

   (2) Unless the policy otherwise provides, the original assured has no right or interest in respect of a reinsurance under subsection (1).

10.   Bottomry.

   The lender of money or bottomry or respondentia has an insurable interest in respect of the loan.

11.   Master's and seamen's wages.

   The master or any member of the crew of a ship has an insurable interest in respect of his or her wages.

12.   Advance freight.

   In the case of advance freight, the person advancing the freight has an insurable interest, in so far as that freight is not repayable in case of loss.

13.   Charges of insurance.

   The assured has an insurable interest in the charges of any insurance which he or she may effect.

14.   Quantum of interest.

   (1) Where the subject matter insured is mortgaged, the mortgagor has an insurable interest in its full value, and the mortgagee has an insurable interest in respect of any sum due or to become due under the mortgage.

   (2) A mortgagee, consignee or other person having an interest in the subject matter insured may insure on behalf and for the benefit of any other person interested as well as for his or her own benefit.

   (3) The owner of insurable property has an insurable interest in respect of its full value, even though some third person may have agreed, or be liable, to indemnify him or her in case of loss.

15.   Assignment of interest.

   (1) Where the assured assigns or otherwise parts with his or her interest in the subject matter insured, he or she does not by that transfer to the assignee his or her rights under the contract of insurance, unless there is an express or implied agreement with the assignee to that effect.

   (2) Subsection (1) of this section does not affect a transmission of interest by operation of law.

PART IV
INSURABLE VALUE.

16.   Measure of insurable value.

   Subject to any express provision or valuation in the policy, the insurable value of the subject matter insured shall be ascertained as follows—

   (a)   in insurance on a ship, the insurable value is the value, at the commencement of the risk, of the ship, including her outfit, provisions and stores for the officers and crew, money advanced for seamen's wages, and other disbursements if any, incurred to make the ship fit for the voyage or adventure contemplated by the policy, plus the charges of insurance upon the whole, and the machinery and boilers, and the fuel and engine stores if owned by the insured, and, in the case of a ship engaged in a special trade, the ordinary fittings requisite for that trade;

   (b)   in insurance on freight, whether paid in advance or otherwise, the insurable value is the gross amount of the freight at the risk of the insured, plus the charges of insurance;

   (c)   in insurance on goods or merchandise, the insurable value is the prime cost of the property insured, plus the expenses of and incidental to shipping and the charges of insurance upon the whole;

   (d)   in insurance on any other subject matter, the insurable value is the amount at the risk of the insured when the policy attaches, plus the charges of insurance.

PART V
DISCLOSURE AND REPRESENTATIONS.

17.   Insurance is uberrimae fidei.

   A contract of marine insurance is a contract based upon the utmost good faith, and, if the utmost good faith is not observed by either party, the contract may be avoided by the other party.

18.   Disclosure by the assured.

   (1) Subject to this section, the assured must disclose to the insurer, before the contract is concluded, every material circumstance which is known to the assured, and the assured

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