Report No. 21
Clause 82
General.-This deals with under-insurance.
Assured his own insurer.-In the case of under-insurance, the assured is deemed to be his own insurer regarding the uninsured balance.
Clause 83
General.-This deals with enforcement of return of premium, and provides that where the premium is wholly or in part "declared to be returnable"1 then it may be recovered or retained by the assured. As to the liability for the return of premium where the policy is effected through a broker, see section 53(1) of the English Act.
1. As to cases where premium is returnable, see sections 83 and 84, English Act, clauses 84 and 85.
Clause 84
General.-This deals with the return of premium.
Returns Clause.-The "Returns Clause" in a policy provides for a pro rata monthly return for each uncommenced month if the policy is cancelled by agreement. Further, where the vessel is "laid-up" in a port for a period of 30 consecutive days, the clause allows return of premium on a certain basis. (When the ship is in port, it is at less risk of loss than when at sea, and this accounts for the provision for return of premium).
There may be provision for return of premium, in cargo insurance, if the journey proceeds via a particular route or the goods are packed in a particular kind of cases.
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