sured may SEC. 2717. A person insured by a contract of marine When ininsurance may abandon the thing insured, or any partic- abandon. ular portion thereof, separately valued by the policy, or otherwise separately insured, and recover for a total loss thereof, when the cause of the loss is a peril insured against 1. If more than half thereof, in value, is actually lost, or would have to be expended to recover it from the peril. 2. If it is injured to such an extent as to reduce its value more than one-half. 3. If, the thing insured being a ship, the contemplated voyage cannot be lawfully performed, without incurring an expense to the insured of more than half the value of the thing abandoned, or without incurring a risk which a prudent man would not take under the circumstances; or, 4. If, the thing insured being cargo or freightage, the voyage cannot be performed, nor another ship procured by the master, within a reasonable time, and with reasonable diligence, to forward the cargo, without incurring the like expense or risk. But freightage cannot in any case be abandoned, unless the ship is also abandoned. N. Y. C. C., Sec. 1487. SEC. 2718. An abandonment must be neither partial Must be nor conditional. N. Y. C. C., Sec. 1488. SEC. 2719. An abandonment must be made within a reasonable time after the information of the loss, and after the commencement of the voyage, and before the party abandoning has information of its completion. N. Y. C. C., Sec. 1489. unqualified. When may be made. Abandonment may SEC. 2720. Where the information upon which an abandonment has been made proves incorrect, or the be defeated. thing insured was so far restored when the abandonment was made, that there was then in fact no total loss, the abandonment becomes ineffectual. N. Y. C. C., Sec. 1490. SEC. 2721. Abandonment is made by giving notice How made. thereof to the insurer; which may be done orally, or in writing. N. Y. C. C., Sec. 1491. Requisites of notice. No other cause can be relied on. Effect. Waiver of formal abandonment. Agents of the insured become agents of the nsurer. Acceptance not necessary. Acceptance conclusive. Accepted abandon ment, irrevocable. Freightage, how affected by abandon SEC. 2722. A notice of abandonment must be explicit; and must specify the particular cause of the abandonment; but need state only enough to show that there is probable cause therefor, and need not be accompanied with proof of interest or of loss. SEC. 2723. N. Y. C. C., Sec. 1492. An abandonment can be sustained only upon the cause specified in the notice thereof. N. Y. C. C., Sec. 1493. SEC. 2724. An abandonment is equivalent to a transfer, by the insured, of his interest, to the insurer, with all the chances of recovery and indemnity. N. Y. C. C., Sec. 1494: SEC. 2725. If a marine insurer pays for a loss as if it were an actual total loss, he is entitled to whatever may remain of the thing insured, or its proceeds or salvage, as if there had been a formal abandonment. N. Y. C. C., Sec. 1495. SEC. 2726. Upon an abandonment, acts done in good faith, by those who were agents of the insured in respect to the thing insured, subsequent to the loss, are at the risk of the insurer, and for his benefit. N. Y. C. C., Sec. 1496. SEC. 2727. An acceptance of an abandonment is not necessary to the rights of the insured, and is not to be presumed from the mere silence of the insurer, upon his receiving notice of abandonment. N. Y. C. C., Sec. 1497. SEC. 2728. The acceptance of an abandonment, whether express or implied, is conclusive upon the parties, and admits the loss and the sufficiency of the abandonment. N. Y. C. C., Sec. 1498. SEC. 2729. An abandonment once made and accepted is irrevocable, unless the ground upon which it was made. proves to be unfounded. SEC. 2730. N. Y. C. C., Sec. 1499. On an accepted abandonment of a ship, ment of ship freightage earned previous to the loss belongs to the insurer thereof; but freightage subsequently earned belongs to the insurer of the ship. N. Y. C. C., Sec. 1500. accept. SEC. 2731. If an insurer refuses to accept a valid aban- Refusal to donment, he is liable as upon an actual total loss, deducting from the amount any proceeds of the thing insured which may have come to the hands of the insured. N. Y. C. C., Sec. 1501. aband n. SEC. 2732. If a person insured omits to abandon, he omission to may nevertheless recover his actual loss. N. Y. C. C., Sec. 1502. ARTICLE IX. MEASURE OF INDEMNITY. SECTION 2736. Valuation, when conclusive. 2737. Partial loss. 2738. Profits. 2739. Valuation apportioned. 2740. Valuation applied to profits. 2741. Estimating loss under an open policy. 2742. Arrival of thing damaged. 2743. Labor and expenses. 2744. General average. 2745. Contribution. 2746. One-third new for old. SEC. 2736. A valuation in a policy of marine insurance is conclusive between the parties thereto, in the adjustment of either a partial or total loss, if the insured has some interest at risk, and there is no fraud on his part; except that when a thing has been hypothecated by bottomry or respondentia, before its insurance, and without the knowledge of the person actually procuring the insurance, he may show the real value. But a valuation fraudulent in fact entitles the insurer to rescind the contract. N. Y. C. C., Sec. 1503; 3 Kent Com., 274. Valuation, clusive. when con SEC. 2737. A marine insurer is liable, upon a partial Partial loss. loss, only for such proportion of the amount insured by him, as the loss bears to the value of the whole interest of the insured in the property insured. N. Y. C. C., Sec. 1504. Profits. Valuation apportioned. Valuation applied to profits. Estimating loss under an SEC. 2738. Where profits are separately insured in a contract of marine insurance, the insured is entitled to recover, in case of loss, a proportion of such profits equiv alent to the proportion which the value of the property lost bears to the value of the whole. N. Y. C. C., Sec. 1505. SEC. 2739. In case of a valued policy of marine insurance on freightage or cargo, if a part only of the subject is exposed to risk, the valuation applies only in proportion to such part. N. Y. C. C., Sec. 1506; 3 Kent Com., 275. SEC. 2740. When profits are valued and insured, by a contract of marine insurance, a loss of them is conclusively presumed from a loss of the property out of which they were expected to arise, and the valuation fixes their amount. N. Y. C. C., Sec. 1507. SEC. 2741. In estimating a loss under an open policy of open policy. marine insurance, the following rules are to be observed: 1. The value of a ship is its value at the beginning of the risk, including all articles or charges which add to its permanent value, or which are necessary to prepare it for the voyage insured. Arrival of thing dam. aged. 2. The value of cargo is its actual cost to the insured, when laden on board, or where that cost cannot be ascertained, its market value at the time and place of lading, adding the charges incurred in purchasing and placing it on board, but without reference to any losses incurred in raising money for its purchase, or to any drawback on its exportation, or to the fluctuations of the market at the port of destination, or to expenses incurred on the way or on arrival. 3. The value of freightage is the gross freightage, exclusive of primage, without reference to the cost of earning it; and, 4. The cost of insurance is in each case to be added to the value thus estimated. N. Y. C. C., Sec. 1508; 3 Kent Com., 335, 336. SEC. 2742. If cargo insured against partial loss arrives at the port of destination in a damaged condition, the loss of the insured is deemed to be the same proportion of the value which the market price at that port, of the thing so damaged, bears to the market price it would have brought if sound. N. Y. C. C., Sec. 1509; 3 Kent Com., 336. expenses. SEC. 2743. A marine insurer is liable for all the ex- Labor and pense attendant upon a loss which forces the ship into port to be repaired; and where it is agreed that the insured may labor for the recovery of the property, the insurer is liable for the expense incurred thereby, such expense, in either case, being in addition to a total loss, if that afterwards occurs. N. Y. C. C., Sec. 1510; 3 Kent Com., 339. average. SEC. 2744. A marine insurer is liable for a loss falling General upon the insured, through a contribution in respect to the thing insured, required to be made by him towards a general average loss called for by a peril insured against. N. Y. C. C., Sec. 1511. SEC. 2745. Where a person insured by a contract of Contribution marine insurance has a demand against others for contribution, he may claim the whole loss from the insurer, subrogating him to his own right to contribution. N. Y. C. C., Sec. 1512. new for old. SEC. 2746. In the case of a partial loss of a ship or its One-third equipments, the old materials are to be applied towards payment for the new, and whether the ship is new or old, a marine insurer is liable for only two-thirds of the remaining cost of the repairs, except that he must pay for anchors and cannon in full, and for sheathing metal at a depreciation of only two and one-half per cent. for each month that it has been fastened to the ship. N. Y. C. C., Sec. 1513. CHAPTER III. FIRE INSURANCE. SECTION 2752. False representation. 2753. Alteration increasing risk. 2754. Alteration not increasing risk. 2755. Acts of the insured. 2756. Measure of indemnity. |