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Report No. 21

Clause 51

General.-This deals with the effect of transhipment.

Analysis of the position.-Transhipment may arise either by operation of a peril insured against or by other causes. The section is confined to the former. The latter is not covered unless the policy otherwise provides. The rule embodied in the section is, that if the circumstances are such as to justify the losses in landing and re-shipping the goods or transhipping them, the insurer continues to be liable, notwithstanding the landing or transhipment.

It has been stated1 that in practice, in cargo policies, the policy provides for other transhipment also, (i) without additional premium, if customary;-or (ii) with additional premium if the transhipment is not customary. Further, "extended cover clause" may cover all transhipments without notice and without additional premium.

Clause (f) needs no comments.

Clause (g) deals with deviation caused by barratry if barratry is a peril insured against. The term "barratry" includes every wrongful act committed by the master or crew to the prejudice of the owner of charterer.1

Sub-section (2)-This provides that when the cause excusing the deviation has ceased to operate, the ship must resume her course, etc. That is to say, it has to take the normal course of the destination from the point to which it has deviated.

Departure from the English Act (Placing).-The placing of this section in the English Act is not very happy. Logically, it comes after deviation-(sections 46 and 49). Hence it has been placed here.

1. Dover, p. 400.

2. Cf. the First Schedule to the English Act, rule 11.

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