Marine Insurance Act 1906
The English statute that still frames most cargo policies worldwide.
Definition
A codification of English marine insurance case law that remains the backbone of the London market and of many policies written elsewhere under English law and practice. It defines insurable interest (s.5), the measure of indemnity, the distinction between actual and constructive total loss (ss.57 and 60), particular and general average, and the insurer's right of subrogation (s.79). Its provisions on the duty of disclosure and on warranties were substantially rewritten for business insurance by the Insurance Act 2015.
Why it decides money
A cargo policy rarely explains these concepts, because the statute already does. If the certificate says English law and practice, the 1906 Act is part of the contract.
Related terms
- Duty of fair presentation
- What you must tell the underwriter before they quote.
- Insurable interest
- You can only insure goods you stand to lose something by.
- Subrogation
- The insurer stepping into your shoes to recover from whoever caused the loss.
More in law and duties
InsuranceScanner is an insurance intermediary, not an insurer — see the Terms for our role. Nothing here is a personal recommendation that a particular cover, sum insured or deductible is suitable for you. Where anything on this page conflicts with the certificate, policy schedule or wording issued by an insurer, that document governs.