Report No. 21

Clause 87

General.-This deals with ratification of a contract of marine insurance effected in good faith by one person on behalf of another. The significance of the section lies in the last 8 words "even after he is aware of a loss". As to ratification generally, see sections 196-200 of the Indian Contract Act, 1872.

Clause 88

General.-This deals with the variation of the implied obligations by agreement or usage.

Clause 89

General.-This deals with "reasonable time", "reasonable premium" and "reasonable diligence".

Clause 90

General.-This provides that for interpreting a policy, reference may be made to the "slip" or "covering note",1 for certain purposes. Section 21 expressly provides that for showing when the proposal was accepted the slip etc. may be referred to. In the case of mutual mistake also, presumably, the slip can be referred to for ratification.2

1. As to the meaning of these expressions, see notes under section 21 of the English Act-clause 18.

2. CI Dover, p. 460.

Clause 91

General.-This saves the provisions of the common law. For an interesting application of this section, see Lord Sumner's judgment in British and Foreign Insurance Co. v. Wilson Shipping Co., (1921) 1 AC 188 (211).1

There are provisions in-

(a) the Indian Stamp Act, 1899;

(b) the Companies Act,2 1956;

(c) the Insurance Act, 1938,

which also have a bearing on marine insurance, but as they would remain unaffected for the proposed Bill, it is considered unnecessary to insert any savings for them.

1. The case has been discussed in the notes to section 77 of the English Act-clause 78.

2. Clause 86 of this Bill deals with associations, and such associations must, it need not be said, comply with the Companies Act.