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Report No. 21

Clause 16

This deals with disclosures by an agent effecting insurance. The importance of this clause lies in the fact that most of the contracts of marine insurance are placed through brokers. The broker is the agent of the assured and not of the insurer. If the broker himself is guilty of nondisclosure or misrepresentation and the assured is innocent, the contract is still voidable, (Of course, in such cases, the assured can sue the broker for negligence).



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