Marine Insurance Act 1906 Analysis

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The Marine Insurance Act 1906 provides substantial detail about total losses. Actual total Loss is defined in section 57(1) of the Marine Insurance Act 1906. This provides; Where the subject-matter insured is destroyed, or so damaged as to cease to be a thing of the kind insured, or where the assured is irretrievably deprived thereof, there is an actual total loss. Under the principle of the Marine Act 1906, enshrined in s 17 of the Marine Insurance Act 1906 a marine insurance contract rested on the presumption that both parties are contracting in good faith and in order that good faith is preserved throughout. The duty of good faith characterises the contract of insurance as a contract uberrimae fidei. This is otherwise known as a contract…show more content…
The majority of literature describes under English law, the legal effects of breach of warranty as draconian and for a long time it was the centre of attention of courts, academics and practitioners. A position vividly illustrated by the decision of the Court of Appeal in Brotherton Aseguradora Colseguros SA [2003] EWCA Civ 705. In this case the insurer was successful in their argument that the insured, a bank in Columbia was under a duty to disclose that there had been many negative press reports about the banks president and his dealings and dishonesty, which would have influenced the insurer providing professional indemnity insurance. It was widely recognized that warranties constituted a source of potential injustice, as they previously entitled an insurer to refuse all claims under an insurance contract if the pre-contractual disclosure duty was breached, even if the breach was committed by the broker. It could also be argued that the insurers are sophisticated organisations in their own rights, having the ability to gather information in order to make their own informed decisions. Moreover, it was seen to make the London market less attractive for new clients as the warranty regime was strikingly different from a general…show more content…
While there is no one body of uniform laws that make up the law of international business. Efforts have been made to help minimize the risks and deal with legal disputes, by trying to standardise practices, customs, and definitions of terms to bring about uniformity within the sector. Giving rise to agreed codes and conventions and recognized practices. The International Chamber of Commerce (ICC) is one such organization and among their uniform codes are ICC INCOTERMS 2000 and Uniform Customs and Practice for Documentary Credit, 2007, (UCP600) rules. INCOTERMS, provide buyers and sellers with standard definitions for clarity concerning the responsibilities of costs associated with the transportation, insurance, tax and duties of goods. Along with where the goods are to be transported to and who is responsible for the goods at each step during transportation. UCP 600 is a set of rules on the issuance and use of letters of credit, used by bankers and commercial parties in trade finance. On the other hand, the convention that deals with the sale of goods, the obligations of the buyer and the seller, remedies for breach of contract is The United Nation Convention on Contracts for the International Sale of Goods (CISG). Furthermore, the conventions applicable to bills of lading are The Hague Visby rules and the Hamburg

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