Report No. 21
General.-This deals with "mixed sea and land' risks.
"Warehouse to warehouse".-The words "by its express terms" enable the contract to extend to non-marine risks also, what is called,-"warehouse to warehouse" coverage, that is to say, the goods are covered as soon as they leave the warehouse even though the journey from warehouse to the sea is on land.
Craft Clause (for crafts, lighters, etc.).-In cargo policies, a craft clause is inserted to bring in craft risk at the port of shipment. (Customary craft risk at the port of discharge would, it has been stated,1 be covered by the printed form). The Institute form of the clause is as follows:-
"Including transit by craft, raft, and/or lighter to and from the vessel. Each craft, raft and/or lighter to be deemed a separate insurance. The assured are not to be prejudiced by any agreement exempting lighter-man from liability".
The last sentence of the clause is explained2 in this manner. Lighter-men are common carriers. They are, however, not covered by the Carriage of Goods by Sea Act. Hence they often, insert a clause relieving themselves from the bulk of the common law liabilities. These clauses reduce the effect of the principle of subrogation,3 and consequently prejudice the rights of the insurers. Marine underwriters, however, accept the position as it is, and undertake not to plead against the insurer that they have surrendered certain rights which would otherwise have accrued to the insurers.
Anomaly in Stamp Act.-Sub-Section (2) covers construction, building, and launching risks. There is one anomaly, namely, that while such insurances are treated as analogous to marine insurances, the policies themselves are stamped with the duty applicable to non-marine insurances. In England, builders' risks policies are under the Revenue Act, 1903 (3 Edw, VII, Ch. 46), section 8, to be stamped as if for a "voyage" and not deemed to be policies for time, even if made for more than a year.
Other policies on adventures "analogous to marine adventures would presumably be liable to stamp only as non-marine policies.4 In India there is no express provision, but entry 47 of the First Schedule to the Indian Stamp Act, sub-division A relating to "sea insurance", would not in terms apply and a fixed duty under sub-division B would be leviable, because such policies would not be "sea-insurance policies" as defined in section 2(20) of the Indian Stamp Act.
The position is anomalous. It is desirable that at least a provision requiring all policies governed by sub-section (2) to be stamped as voyage policies, be inserted in the Indian Stamp Act.
1. Dover, Handbook, p. 224.
2. Cf. Dover, p. 298.
3. Cf. Dover, p. 224.
4. See section 79, English Act-clause 80.