Cases & Mats on Marine Insurance Law by Hodges

By Hodges

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9 This was confirmed by Lawrence J, in Re London County Commercial Reinsurance Office Ltd [1922] 2 Ch 67, cited above. Lawrence J: [p 85] …There remains to be considered the question whether the claimants under these policies are entitled to the return of the premiums which they have paid. Having regard to the fact that the Act 19 Geo 2, c 37, which rendered marine policies effected by way of gaming or wagering illegal, was repealed by s 92 of the Act of 1906, and that the latter Act merely renders such policies void, I am of opinion that the claimants are entitled to prove for the amount of the premiums paid by them in respect of these policies.

North British and Mercantile Insurance Co v London, Liverpool, and Globe Insurance Co (1877) 5 Ch D 569, CA A quantity of grain, owned by Rodocanachi and Co, was stored in the warehouse of another company, Barnett and Co. The grain was insured by both companies with different underwriters. When a fire broke out and destroyed the grain, Barnett and Co, the warehouse owners, were indemnified in full by the plaintiffs, North British and Mercantile Insurance Co who, in turn, claimed that the defendants, the insurers of Rodocanachi and Co, were liable for a contribution to the claim which had already been settled in full.

The contention is that, as the plaintiffs had an insurable interest, the section does not apply. It seems to me that the language of the section does not permit of that construction. The section is drawn for the purpose, as it seems to me, of excluding any inquiry into the question whether or not an insurable interest exists. Sub-section 2(b) is directed to the form of the instrument and, if it is directed to the form, it must include everything which forms part of the instrument, whether it is pasted on or pinned on.

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