Report No. 21

Clause 19

General.-This embodies the general principle that a contract of marine insurance must be embodied in a marine policy.

Stamp Act.-It may be noted that section 93 of the Stamp Act, 1891 (English) and section 7 of the Indian Stamp Act, 1899, are also relevant on the subject. Both of them provide that a contract of sea insurance (with a minor exception)1 shall not be "valid" unless the same is "expressed" in a policy of sea insurance. While section 22 of the Marine Insurance Act speaks of the contract being "inadmissible in evidence", the Stamp Act speaks of its not being valid. Thus the provisions of the Stamp Act are more stringent.

Suggestion regarding stamp.-It may also be added here that there are certain provisions in the English Stamp Law namely, section 11 of the Finance Act, 1901, (regarding policies with a continuation clause), section 8 of the Revenue Act, 1903 (for builders' etc. risks) and section 8 of the Finance Act, 1912 (for increase in premium), which are relevant and important on the subject to stamp in marine insurance. The necessity of making similar provisions in the Indian Stamp Law may have to be considered.2

Departure from the English Act

"Subject to" the provisions of any statute "omitted".-The significance of the words "subject to" in the English Act is that the provisions regarding stamping are also to be complied with.3 It appears, however, unnecessary to make this clarification. The result would be the same even without those words. Hence they have not been used.

"In accordance with this Act."-These words refer to detailed provisions in sections 23, 24, 25, 26, 27, 28 and 29 in the English Act.

"May be executed".-Execution of policy simultaneously with the conclusion of the contract is not frequent, because usually the contract is concluded by the "slip" (see section 21 of the English Act) while the policy takes some time. The word "may" is permissive only.

Conflict between policy and slip.-See, on this subject, discussion in the usual textbooks.4

1. As to the exception, see note at the end entitled, "Suggestion regarding section 7 of the Indian Stamp Act" etc.

2. See also notes on section 25, English Act-clause 22. The provisions are discussed in Dover Handbook, pp. 133-135, and Kea te, pp. 99-101.

3. Cf. Chalmers, p. 34, footnote 5.

4. See, for example, Dover Handbook, p. 332.