67. Extent of liability of insurer for loss.—(1) The sum which the assured can recover in respect of
a loss on a policy by which he is insured, in the case of an unvalued policy to the full extent of the
insurable value, or, in the case of a valued policy to the full extent of the value fixed by the policy, is
called the measure of indemnity.
(2) Where there is a loss recoverable under the policy, the insurer, or each insurer if there be more
than one, is liable for such proportion of the measure of indemnity as the amount of his subscription bears
to the value fixed by the policy in the case of a valued policy, or to the insurable value in the case of an
unvalued policy.
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68. Total loss.—Subject to the provisions of this Act, and to any express provision in the policy,
where there is a total loss of the subject-matter insured—
(1) if the policy be a valued policy, the measure of indemnity is the sum fixed by the policy;
(2) if the policy be an unvalued policy, the measure of indemnity is the insurable value of the
subject-matter insured.
69. Partial loss of ship.—Where a ship is damaged, but is not totally lost, the measure of indemnity
subject to any express provision in the policy, is as follows—
(1) where the ship has been repaired, the assured is entitled to the reasonable cost of the repairs,
less the customary deductions, but not exceeding the sum insured in respect of any one casualty;
(2) where the ship has been only partially repaired, the assured is entitled to the reasonable cost of
such repairs, computed as above, and also to be indemnified for the reasonable depreciation, if any,
arising from the unrepaired damage, provided that the aggregate amount shall not exceed the cost of
repairing the whole damage, computed as above;
(3) where the ship has not been repaired, and has not been sold in her damaged state during the
risk, the assured is entitled to be indemnified for the reasonable depreciation arising from the
unrepaired damage, but not exceeding the reasonable cost of repairing such damage, computed as
above;
(4) where the ship has not been repaired, and has been sold in her damaged state during the risk,
the assured is entitled to be indemnified for the reasonable cost of repairing the damage, computed as
above, but not exceeding the depreciation in value as ascertained by the sale.
70. Partial loss of freight.—Subject to any express provision in the policy, where there is a partial
loss of freight, the measure of indemnity is such proportion of the sum fixed by the policy in the case of a
valued policy or of the insurable value in the case of an unvalued policy, as the proportion of freight lost
by the assured bears to the whole freight at the risk of the assured under the policy.
71. Partial loss of goods, merchandise, etc.—Where there is a partial loss of goods, merchandise, or
other movable, the measure of indemnity, subject to any express provision in the policy, is as follows:—
(1) where part of the goods, merchandise or other movable insured by a valued policy is totally
lost, the measure of indemnity is such proportion of the sum fixed by the policy as the insurable value
of the part lost bears to the insurable value of the whole, ascertained as in the case of an unvalued
policy;
(2) where part of the goods, merchandise or other movable insured by an unvalued policy is
totally lost, the measure of indemnity is the insurable value of the part lost, ascertained as in case of
total loss;
(3) where the whole or any part of the goods or merchandise insured has been delivered damaged
at its destination, the measure of idemnity is such proportion of the sum fixed by the policy in the
case of a valued policy, or of the insurable value in the case of an unvalued policy, as the difference
between the gross sound and damaged values at the place of arrival bears to the gross sound value;
(4) “Gross value” means the wholesale price, or, if there be no such price, the estimated value,
with, in either case, freight, landing charges, and duty paid beforehand; provided that, in the case of
goods or merchandise customarily sold in bond, the bonded price is deemed to be the gross value.
“Gross proceeds” means the actual price obtained at a sale where all charges on sale are paid by the
sellers.
72. Apportionment of valuation.—(1) Where different species of property are insured under a single
valuation, the valuation must be apportioned over the different species in proportion to their respective
insurable values, as in the case of an unvalued policy. The insured value of any part of a species is such
proportion of the total insured value of the same as the insurable value of the part bears to the insurable
value of the whole, ascertained in both cases as provided by this Act.
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(2) Where a valuation has to be apportioned, and particulars of the prime cost of each separate
species, quality, or description of goods cannot be ascertained, the division of the valuation may be made
over the net arrived sound values of the different species, qualities, or descriptions of goods.
73. General average contributions and salvage charges.—(1) Subject to any express provision in
the policy, where the assured has paid, or is liable for, any general average contribution, the measure of
indemnity is the full amount of such contribution if the subject-matter liable to contribution is insured for
its full contributory value; but, if such subject-matter be not insured for its full contributory value, or if
only part of it be insured, the indemnity payable by the insurer must be reduced in proportion to the
under-insurance, and where there has been a particular average loss which constitutes a deduction from
the contributory value, and for which the insurer is liable, that amount must be deducted from the insured
value in order to ascertain what the insurer is liable to contribute.
(2) Where the insurer is liable for salvage charges the extent of his liabilities must be determined on
the like principle.
74. Liabilities to third parties.—Where the assured has effected an insurance in express terms
against any liability to a third party, the measure of indemnity, subject to any express provision in the
policy, is the amount paid or payable by him to such third party in respect of such liability.
75. General provisions as to measure of indemnity.—(1) Where there has been a loss in respect of
any subject-matter not expressly provided for in the foregoing provisions of this Act, the measure of
indemnity shall be ascertained as nearly as may be, in accordance with those provisions, in so far as
applicable to the particular case.
(2) Nothing in the provisions of this Act relating to the measure of indemnity shall affect the rules
relating to double insurance, or prohibit the insurer from disproving interest wholly or in part, or from
showing that at the time of the loss the whole or any part of the subject-matter insured was not at risk
under the policy.
76. Particular average warranties.—(1) Where the subject-matter insured is warranted free from
particular average, the assured cannot recover for a loss of part, other than a loss incurred by a general
average sacrifice, unless the contract contained in the policy be apportionable; but, if the contract be
apportionable, the assured may recover for a total loss of any apportionable part.
(2) Where the subject-matter insured is warranted free from particular average, either wholly or under
a certain percentage, the insurer is nevertheless liable for salvage charges, and for particular charges and
other expenses properly incurred pursuant to the provisions of the suing and labouring clause in order to
avert a loss insured against.
(3) Unless the policy otherwise provides, where the subject-matter insured is warranted free from
particular average under a specified percentage, a general average loss cannot be added to a particular
average loss to make up the specified percentage.
(4) For the purpose of ascertaining whether the specified percentage has been reached, regard shall be
had only to the actual loss suffered by the subject-matter insured. Particular charges and the expenses of
and incidental to ascertaining and proving the loss must be excluded.
77. Successive losses.—(1) Unless the policy otherwise provides, and subject to the provisions of this
Act, the insurer is liable for successive losses, even though the total amount of such losses may exceed the
sum insured.
(2) Where, under the same policy, a partial loss, which has not been repaired or otherwise made good,
is followed by a total loss, the assured can only recover in respect of the total loss:
Provided that nothing in this section shall affect the liability of the insurer under the suing and
labouring clause.
78. Suing and labouring clause.—(1) Where the policy contains a suing and labouring clause, the
engagement thereby entered into is deemed to be supplementary to the contract of insurance, and the
assured may recover from the insurer any expenses properly incurred pursuant to the clause,
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notwithstanding that the insurer may have paid for a total loss, or that the subject-matter may have been
warranted free from particular average, either wholly or under a certain percentage.
(2) General average losses and contributions and salvage charges, as defined by this Act, are not
recoverable under the suing and labouring clause.
(3) Expenses incurred for the purpose of averting or diminishing any loss not covered by the policy
are not recoverable under the suing and labouring clause.
(4) It is the duty of the assured and his agents, in all cases, to take such measures as may be
reasonable for the purpose of averting or minimising a loss.