. 13 c. To this is to be added the estimated expected profit, if this has been insured. 13°. The underwriter cannot, in any case, compel the assured to sell the objects insured for the purpose of ascertaining their value, unless it were otherwise agreed upon in the policy. 14°. The loss is valued and adjusted at the place of destination, and the laws and customs existing there must be complied with, if the vessel and cargo arrive there, on the principle of locus regit actum. If the vessel does not reach its destination, then the law of the place where the voyage ended must be followed. rule of locus regit actum, applies only to acts of inspection, valuation and adjustment of the actual damage and depreciation, and does not infringe on the lea loci contractus, which governs the contract of insurance as a whole and in its This constituent principles. If the insured goods arrive at the place of destination in a damaged or deteriorated state, and the damage is visible outwardly, the inspection of the goods and valuation of the damage must take place by competent persons before the goods come under the control of the assured, in conformity with the law and custom existing there (locus regit actum). If the damage or diminution is not outwardly apparent at the discharge, the inspection may take place after the goods have come under the control of the assured, provided it be done within. the space of time and term, as fixed by the respective law, after the discharge; without prejudice to what further evidence may be found necessary at the instance of either party. ing one third new for 15°. If not otherwise required by the lex loci ule for deductcontractus, in case of damage to an insured ship, except in the caused by perils of the sea,, the underwriter case of iron ships. Cases where repair exceed three fourth of the value, or bears only two thirds of the estimated costs of repairs, whether these repairs have actually taken place or not, and this in proportion of the insured to the uninsured part. One third remains for account of the assured, as equivalent of the presumed amelioration caused by substitution of the new for the old. In the case of iron ships, however, this rule is never resorted to. If the repairs have taken place, the amount of the costs thereof is proved by accounts and any other evidence, and, if need be, by an estimate of competent persons. If the repairs have not been executed, the amount of the same is estimated by competent surveyors. When it appears,-if necessary, after the hearing of competent persons, -that the value of the ship has increased through the repairs by more than one third of its primitive value, the underwriter pays, in the proportion mentioned above, the full amount of expense for repairs, with deduction of the amount of increased value. If, on the other hand, the assured proves,-if necessary, after inspection by experts as aforesaid, that the value of the ship has not been improved or increased in any way by the repairs through her being new, and having suffered the damage on her first voyage, or if the damage occurred to new sails or new shipsstores, or to anchors, chain-cables or new coppersheathing etc., then the deduction of one third does not take place and the underwriter is bound to indemnify the whole cost of the repairs in proportion of the insured to the uninsured part. If the estimated costs of repairs should amount to more than three fourths of the value of the ship, (or otherwise, as required by the lex loci conloci contractus. tractus), she may, with respect to the underwriter, be held to be condemned; and the underwriter other portion as stated by the lex 63 . is then bound, if no abandonment has taken place, to pay the sum he has insured to the assured, with deduction of the value of the damaged ship or wreck. * (§ 65, sub-section 1). of losses. 16°. In the case of a ship which reached a port Aggregation of shelter, and, after repairs there, is subsequently lost, (by whatever cause this may occur), the underwriter, as a general rule, is not liable for more than the payment of the sum insured by him. The same rule applies, in a general sense, if a ship has, by several repairs, expended more for this purpose than the sum insured. † 17°. The underwriter is, as a general rule, not bound to support any general or particular average, if this, exclusive of the costs of inspection, estimation and adjustment, does not amount to one per cent. of the value of the damaged object; unless parties have agreed otherwise. 18°. The underwriters pay as much for general average, as the vessel, the freight or the cargo,for as much as respectively insured,-have to participate in the general average, and that in the proportion of the part insured to the uninsured part. 19°. The general and particular average being adjusted, the account of damages and loss and the vouchers relating thereto, must be delivered to the underwriters. These are bound to pay what is due by them within the time and term fixed by the lex loci contractus, and are from the expiration of that time liable to legal interest in conformity with that law. * By English Law there is no absolute proportion fixed; Sec ARNOULD. Marine Insurance. Edit. 1877, Vol. II. p. 1001. † In English and French Laws this rule is not observed, aggrega tion of losses being recognized: See ARNOULD, Vol. II. p. 942 and NOLTE'S Edition of BENECKE, Vol. II. pp. 191-193. $64. On assessment and apportionment of gross or general average contribution, the following rules are applicable in most cases. 1°. The adjusting and assessment of general average is, like the valuation of losses and damages, done at the place where the voyage ends unless parties have otherwise agreed (§ 63, sub-section 14). 2°. The estimation and assessment of general average are made at the request of the master and by competent persons. The experts are appointed by the parties, or by the respective Consul, at the place where the estimation and assessment must be made. The experts must be sworn before the respective Consul or local authority previous to the commencement of their work, and the assessment must be sanctioned by the respective Consul, if required by the law of the State to which the vessel or parties belong. Where there is no qualified Consul, the general average is adjusted by the competent local authority. 3°. In case of a total cessation of the voyage on the way, or of sale of the cargo in a port of shelter, the claim, adjustment and assessment of the loss are made at the place where such cessation or sale occurs. .. 4°. If the master neglects to make the claim mentioned in sub-section 3°., the owners of the ship, or also those of the goods, are qualified to make the claim themselves, without prejudice to their claim on the master for indemnification. 5°. General average contributions are borne as follows: a. By the value of the ship, in the state in which she arrived, with addition of amount of compensation gained by the general average contribution. b. By the freight money, less the amount of c. By the value of the goods which, at the 6o. As a general rule, the goods are estimated at their value at the place of discharge, after deduction of freight, import duties, and charges for unloading, together with their particular average during the voyage if any. This rule suffers exception in the following cases :— a. If the adjustment and assessment must be made at the place whence the ship departed, or should have departed, the price of the goods is fixed at the value which the goods had at the time of shipment, plus the charges on the goods laid down on board, but exclusive of the premium of insurance; and, if the goods are damaged, at their actual value. b. If the voyage is entirely stopped in a foreign port, or the goods are sold, and the average cannot be adjusted there, then the price which the goods are worth on the way, or their net proceeds at the place of sale, is taken as contributing value. |