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Lecture IV. Conditions in Fire Policies
Published online by Cambridge University Press: 22 April 2013
Extract
The law of fire insurance depends on the two fundamental principles, that a fire policy is a contract of indemnity, and that, in its usual form, it is a personal contract. In the present lecture I propose only to deal with the conditions in fire policies which express or modify these principles.
The first principle, that fire insurance is a contract of indemnity, is founded on considerations of public policy, and is a rule of law which cannot be set aside by consent of parties. An insurance against loss by fire for a fixed sum, irrespective of the actual loss sustained by the insured, would not be valid or enforceable.
Policies of marine insurance, which, like fire insurance, is a contract of indemnity, are sometimes made valued policies, but this does not mean that the policy will be sustained if it is proved that the value stated in the policy exceeds the actual value of the subject insured. The object of the valuation is to supersede the necessity of inquiry into the value of the vessel and cargo after they have been lost, but if it is proved that there has been a fraudulent over-valuation on the part of the insured, or an illegal agreement between the insurer and insured to effect an insurance without interest, the policy will not be sustained for the actual value, but will be treated as altogether void. A valued policy is therefore good for its amount or for nothing.
- Type
- Lectures on Insurance Law
- Information
- Copyright
- Copyright © Institute and Faculty of Actuaries 1896
References
Page 321 note a Arnold on Marine insurance, 6th Ed., Part 1., Ch. 6.
Page 322 note a Shotwell v. Jefferson Ins. Co., 5 Bosworth 247; 2 Am. L. C. 833, note.
Page 323 note a 3 Q. B. D. 173.
Page 324 note a Rayner v. Preston, 14 Ch. D. 297; 18 Ch D 1
Page 324 note b 11 Q. B. D. 380.
Page 325 note a Per Bowen, L. J., p. 402; Burnand v. Rodocanachi, 7 App. Cas. 333; Darrell v. Tibbitts, 5 Q. B. D. 560.
Page 325 note b Collingridge's case.
Page 325 note c Castellain's case, and Rayner's case.
Page 325 note d Castellain's case.
Page 325 note e Quebec Fire Office v. St. Louis, 7 Moore's P. C. C. 286, 317; Mason v. Sainsbury, 3 Douglas 61; Clark v. Inhabitants of Blything, 2 B. & C. 254.
Page 326 note a For a full discussion of the nature of tne interest covered by a mortgagee's policy, see Excelsior Fire Ins. Co. v. Royal Ins. Co. of Liverpool, 14 Am. Reps. 271, at pp. 279, 283.
Page 326 note b Nicols v. Scottish Union and Nat. Ins. Co., 11 Rettie App. 1094. Nelson v. Brook Mut. Fire Ins. Co., 3 Am. St. R. 308; Clinton v. Hope Ins. Co., 45 N. Y. 454.
Page 226 note c Tate v. Hislop, 15 Q. B. D. 368; Phœnix Co. v. Erie Co., 117 U.S. 312.
Page 326 note d Tate v. Hislop, 15 Q. B. D. 368.
Page 326 note e Foster v. Van Reid, 26 Am. R. 544.
Page 327 note a Crowley v. Cohen, 3 B. & Ad. 478; Phœnix Ins. Co. v. Erie Transportation Co., 117 U.S. 312, 323.
Page 327 note b Waters v. Monarch Assurance Co., 5 E. & B. 870; London and N.-W. Railway Co. v. Glyn, 1 E. & E. 652.
Page 328 note a N. B. and Mercantile Ins. Co. v. Moffatt, L. R. 7 C. P. 25.
Page 328 note b 5 Ch. D. 569.
Page 328 note c Collingridge's case.
Page 328 note d Castellain's case.
Page 328 note e Rayner's case.
Page 330 note a Home Ins. Co. v. Baltimore Warehouse Co., 93 U.S. 527.
Page 330 note b N. B. & Mercantile Ins. Co. v. L. L. & Globe Ins. Co., 5 Ch. D. 569.
Page 331 note a Andrews v. Patriotic Ass. Co., 18 L. R. Ireland, 355.
Page 332 note a Leeds v. Cheetham, 1 Sim 146.
Page 332 note b 14 Geo. III. c. 78.
Page 332 note c Ex part Gorely, 4 De G. J. L S. 477.
Page 333 note a Rayner v. Preston, 14 Ch. D. 297; 18 Ch. D. 1; Westminster Fire Office v. Glasgow, etc., Society, 13 App. Cas. 699, per Lord Selborne, 713.
Page 333 note b Ætna Insurance v. Tyler, 30 Am. Dec. 90.
Page 333 note c Godin v. London Assurance, 1 Burr. 490.
Page 333 note d 11 Rettie 287.
Page 334 note a 11 Rettie 295.
Page 334 note b 14 Rettie 947; 15 Rettie (H. of L.) 89; L. R. 13 App. Cas. 699.
Page 337 note a 11 Q. B. D. 380.
Page 337 note b 5 Q. B. D. 560.