ftances which enhance the danger. 1. The constition of poffefling property was required by ftat. 19 Geo. II. cap. 37. in order to prevent ships from being fraudulently destroyed when infured above their value; and to discourage a practice which had become common, of converting policies to the purpose of mere wagers. In tranfactions of this kind, as the infured had no property, and could claim no indemnification for partial damage; fo the infurers, having loft their wager by the ship's being loft, could claim no abatement, though part was faved: accordingly, the policies contained clauses of interest or no intereft, free from average, and without benefit of falvage. All fach policies are declared invalid. This retrition does not extend to privateers, nor to flips trading to the Spanish or Portuguese plantations. Infurances are commonly made as intereft thall appear; and it is incumbent on the infured to prove the value of his property. The value of the, goods may be proved by the invoices; and the coquet must be produced, if required, to inAruct that the goods were actually fhipped. It is admitted to value the fhip at prime coft and charges, deducting the freights that have been drawn hace purchafed, if the proprietors choofe to ftand to that rule; but they are not reftricted to it. Sometimes the value of the ship or goods is expreffed in the policy; and this value must be ad. mitted; although it be higher than the true one: but it is incumbent on the infured to prove that he had property at ftake; and, if the property be trifling in comparison of the fum infured, the infurance will be fet afide, as an evafion of the ftatate. Expected profits, and bounty on the whale fuhery, if fpecified in the policy, may be infured. When the value is lefs than the fum infüred, the owners may claim a return of premium for the excefs. If there be feveral policies on the fame Tabject, of different dates, the earlier one is valid, and the others must be vacated. If they be of the fame date, they must be vacated in equal proporbons. When a policy is vacated, in whole or in part, the under-writers have a right to retain per cent. for their trouble. In the cafe of a cargo intended for A, but afterwards fent to B, both expected it, and infüred, and B claimed for the vale on its being loft. The under-writers anfwered, that it was a double infurance, and they ought only to pay their proportion. Judgment was given, inding them liable for the whole, and referving to them any demand competent against the underwriters who infured for A Fraudulently to cat away or deftroy a fhip infured above its vaine, is felony. 2. If the fhip does not proceed on the voyage, or if, being warranted to depart with conroy, it departs without convoy, the infurance mut be vacated. If the extent of a trading voy age be uncertain, the longeft one in contemplation is defcribed in the policy, and it is agreed that part of the premium fhall be returned if the toyage be shortened. In like manner, in time of war, when insurance is made without condition of convoy, it is agreed that part of the premium be returned in cafe it fait with convoy. When a fhip is warranted to depart with convoy, it is under Bood from the ufual place of convoy (e. g. the VOL. XII. PART I.

Downs), and it is infured till it arrive there. The common proof of failing with convoy is the production of failing orders; but, if a ship be prevented by the weather from receiving the failing orders, other proof may be admitted. A ship was infured from the Thames to Halifax, warranted to fail from Portsmouth with convoy. The convoy had failed before the ship arrived there, and the underwriters declined to insure it, without convoy, for the reft of the voyage. They were found liable to return part of the premium, retaining only in proportion to the accustomed rate from London to Portsmouth. This decifion feems to eftablish the following principle, that, when the voyage performed is only part of that defcribed in the policy, and when the risk can be proportioned, the underwriters are bound to return part of the premium, though there be no agreement for that purpose. But, if a fhip, infured only against the hazards of the fea, be taken by the enemy, the infured have no right to claim a return of premium, though the capture happen foon, under pretence that little fea hazard was incurred. If, a fhip deviates from the voyage described in the policy, without neceffity, it fets afide the infurance. An intention to deviate is not fufficient to fet it afide; there must be an actuat deviation; and, even in that cafe, the insurers are liable for damages fuftained before deviation. It is no deviation to go out of the way to the accuftomed place of convoy, nor to the nearest place where neceffary repairs may be had. Deviation, for the purpose of smuggling, if without the knowledge of the owners, does not fet afide the infurance, nor when the mafter is forced by the crew to return. In infurances to the Eaft Indies, and home, the infurers are understood to take the risk of detention in the country, and of country voyages. 3. Infurance of prohibited goods, against the rifk of feizure by the government, is unlawful and invalid. The infurers, infured, brokers, and all acceffories, are liable to the fine of soo!. 4. If the infured have any information of more than common danger, they must reveal every such circumftance to the infurers, otherwife the policy is fet afide. This rule is established for the prefervation of good faith; and there are feveral ftrong decifions in fupport of it. If a fhip be fpoke to leaky at fea, or if there be a report of its being loft, thefe circumftances must be communicated to the infurers. Even the concealment of a falfe report of lofs vitiates the infurance; and if the thip be afterwards loft, though in a different man-ner, the infured will recover nothing. In a voyage from Carolina to London, another fhip had failed 10 days after that which was infured, and arrived feven days before the infurance was made; and the concealment of this circumstance, though the fact was not proved to the fatisfaction of the jury, was confidered as fufficient to fet it afide. Alfo, during the continuance of the American war, a fhip being infured from Portugal by the month, without condescending on the voyage, failed for North America, and was taken by a provincial privateer. The infurers refused to pay, because the hazardous deftination was concealed; and it was only upon proof of the infured being Ff

equally

equally ignorant of it that they were found liable. -ed with little trouble or delay, they are not in But the infured are not obliged to take notice of titled; (Hamilton against Mendez, 2 Burrow, general perils, which the infurers may be under- 1198). The infured cannot claim, as for a total ftood to have had in contemplation; dangerous navigation, Weft Indian hurricanes, enter. prizes of the enemy, and the like. Infurance is not fet afide by a mistake in the name of the ship, or the mafter, or the like. Infurance may be made on an uncertain fhip; on any ship that the goods may be loaded on; on any fhip that A fhall fail in from Virginia. In this laft cafe, the policy is not transferred to a fhip which A goes on board during the voyage. II. If a fhip be infured at and from a port, the infurance commences immediately if the fhip be there, or at its arrival there. If it be damaged when preparing for a voyage, the infurers are liable; but not if the voyage be laid afide for feveral years, with confent of the owners. Infurance from a port commences when the fhip breaks ground; and, if it fet fail, and be driven back and loft in the port, the insurers are liable. Infurance on goods generally continues till they be landed; but, if they be fold after the fhip's arrival, and freight contracted to another port, the infurance is concluded. Goods fent on board another fhip or lighter, are not at the risk of the infurer; but goods fent afhore in the long boat are. Infurance on freight commences when the goods are put on board. Goods from the Eaft Indies, infured to Gibraltar, and to be re-shipped from thence to Britain, were put on board a ftore-ship at Gibraltar, to wait an opportunity of re-fhipping, and were loft: the cuftom of putting goods aboard a ftore-fhip being proved, the infurers were found liable. Lofs of fails afhore, when the ship is repairing, is comprehended within the infurance. What is neceffarily understood is infured, as well as what is expreffed; the effential means, and intermediate fteps, as well as the end. Ships performing quarantine are at the risk of the infurer. III. The infurers are liable for a total lofs when the fubject perishes through any of the perils infured againft. Baratry, though it properly fignifies running away with the fhip, extends to any kind of fraud in the mafter or mariners. Infurance againft detention of princes does not extend to fhips that are feized for tranfgreffing the laws of foreign countries. The infurers are alfo liable for a total lofs, when damage is fuftained, and the remaining property abandoned or vefted in the infurers. If à fhip be stranded, or taken, and kept by the enemy, or detained by any foreign power, or feized for the service of the government, the proprietors have a right to abandon. But, if a ship be taken by the enemy, and be retaken, or makes its efcape, before action against the insurers; have the infured a right to abandon, or muft they only claim for the damages fuftained as an average lofs? There are oppofite decifions, according as the circumftances of the cafe were ftrong. When the fhip was long detained, the goods perishable, the voyage entirely loft, or fo difturbed, that the purfuit of it was not worth the freight, or when the damage exceeds half the value of the thing, they have been found intitled to abandon; (Gofs against Withers, 2 Burrow, 683.) But, if the voyage be complet

lofs, on an offer to abandon, when the cafe is, in its nature, only partial; for, if this were per mitted, they might devolve the lofs occafion ed by bad markets on the infurers. And, in all cafes the infured have their option to abandon, or not. They may retain their property if they please, and claim for an average lofs; and they muft make their option before they claim. If the goods be fo much damaged, that their value is lefs than the freight, the infurers are accountable as for a total lofs. The infurers are liable for gene ral average, when the property is charged with contribution; and for particular average, when the property is damaged, or part of it deftroyed. If the damage be fuftained through the fault the fhip, the owners of the goods may have re course, either against the mafter or infurers; and, if the infurers be charged, they ftand in the place of the owners, and have recourse against the maf ter. In order to prevent the infurers from being troubled with frivolous demands for average, it generally stipulated, that none shall be charged under 5 per cent. or fome other determined rate; and corn, flax, fruit, fifh, and like perishable goods, are warranted free from average, unles general, or the ship be ftranded. In order to encourage every effort to fave the fhip, the infurers are liable for charges laid out with that defign, although the subject perish. Thus, they may be charged with more than the fum infured. In cafe of goods being damaged, the proportion of the fum infured, for which the underwriters are li able, is regulated by the proportion of the prices which the found and damaged goods fetch at the port of deftination. The prime coft of the goods is not confidered, nor the neceffity of immediate fale, in confequence of damage. Although the damaged goods fell above prime coft, the infurers are liable. IV. If a fhip be loft, and the crew fav ed, the lofs is proved by the evidence of the crew. If damage be fuftained, the extent is proved by an examination of the fubject damaged, at the fhip's arrival; and the caufe by the evidence of the crew. If the thip be ftranded, evidence must be taken at the place where ftranded; docu ments of lofs must be laid before the under-writ ers, with all convenient speed; and, if these be fufficiently clear, the lofs fhould be immediately fettled. The under-writers generally grant their notes at a month or fix weeks date for their pro portions. If a fhip be not heard of for a certain time, it is prefumed loft; and the under-writers are liable to pay the fums infured, the property being abandoned to them in the event of the ship' return. Six months are allowed for a voyage to any part of Europe, a year to America, and two years to the Eaft Indies. By the ordinance of Hamburgh, if a ship be three months beyond the ufual time of performing a voyage, the under-writers may be defired to pay 92 per cent. on an aban don. If they decline it, they are allowed 14 months more, and then they must pay the full value. A fhip insured against the hazards of the fea, but not againft the enemy, if never heard of, is prefumed loft at fea. V. That the manner of fettling loffes

may

may be understood, we must explain what is meant by covering property. We mentioned already, that infurances for greater fums than the infured had really at ftake, were contrary to law: bat fome latitude is allowed in that refpect; for if the owner were to infure no more than the exact value of his property, he would lofe the premium of infurance, and the abatement, if any was agreed on. For example, if he has goods on board to the value of rool. infured at 5 per cent to abate s per cent. in cafe of lofs; then, if a total lofs happea, he recovers 981. from the infurers; of which 51. being applied to replace the premium, the neat fum faved is only 931.; but, if the value on board be only 931. and the fum infured rool. he would be fully indemnified for the lofs; and his property in that cafe is faid to be covered. To find how mach fhould be infured to cover any fum, fubtract the amount of the premium and abatement (if any) from rool. As the remainder is to tool. fo is the value to the fum which covers it. In cafe of a total lofs, if the fum infured be not greater than that which covers the property, the infarers must pay it all. If greater, they pay what covers the property, and return the premum on the overplus. Partial loffes are regulated by this principle, that whereas the owner is not fully indemnified, in cafe of a total lofs, unIs he covers his property, therefore he fhould only be indemnified for a partial lofs in the fame proportion; and, if it be not fully infured, he is confidered as infurer himself, for the part not covered, and must bear a suitable proportion of the lafa. Therefore the value of the property is proved, and the fum required to cover it computed. If that fum be all infured, the underwriters pay the whole damage; if only part be infured, they pay their fhare, which is computed by the following rule: as the fum which covers the property is to the fum infured, fo is the whole damage to the part for which the infurers are liable-For example, if the value of the property be fol. the fum infured 300l. the premium 8 per cent, and abatement 2 per cent.; then the fum which fhould be infured to cover the property is l; and, if damage be fuftained to the extent of 200l. the owners will recover 150l. If a voyage is infured out and home, the premium outward must be confidered as part of the value the homeward property, and the fum necelary to cover it computed accordingly. For ample, to rool. out and home, at 5 per cent. each voyage, abatement 2 per cent. we compute tus; 93; 100:: L 100: L.107: 10: 6, to be infared outward, premium on L.107: 10: 6 outwards, at s per cent. L.: 7:6:93: 100:: L105:7:6: L.113: 6s. to be infured home; premium on which is L.5: 13:6; and, if the hip be loft on the homeward voyage, From the fum infured home Subtract the discount, 2 per cent L.113 6 o

the

III. INSURANCE FOR LIVES. In virtue of infurance for life, when the perfon dies, a fum of money becomes payable to the person on whose behalf the policy of infurance was granted. One of the principal insurance offices of this kind, is that of the Amicable Society for a perpetual affurance, kept in Serjeant's inn, Fleet-ftreet, London. This Society requires an annual payment of 51. from every member during life, payable quarterly. The whole annual income hence arifing is equally divided among the nominees, or heirs, of fuch members as die every year; and this renders the dividends among the nominees, in different years, more or lefs, according to the number of members who have happened to die in thofe years. But this fociety engages that the dividends shall not be less than 150l. to each claimant, though they may be more. None are admitted whofe ages are greater than 45, or lefs than 12; nor is there any difference of contribution allowed on account of difference of age.-This fociety has fubfifted ever fince 1706; and, has extended the number of its fhares to 4000. Its credit and usefulness are well established, but its plan is liable to feveral objections. First, it is evident, that regulating the dividends among the nominees, by the number of members who die every year, is not equitable; because it makes the benefit which a member is to receive to depend, not on the value of his contribution, but on a contingency; that is, the number of members that fhall happen to die the fame year with him. adly, Its requiring the fame payments from all per fons under 45, is alfo not equitable; for the payment of a perfon admitted at 12, ought not to be more than half the payment of a perfon admitted at 45. 3dly, Its plan is fo narrow, as to confine its usefulness too much. It can be of no fervice to any perfon whofe age exceeds 45. It is likewife, by no means properly adapted to the circumstances of perfons who want to make affurances on their lives for only one year, or a thort term of years. For example; the true value of the affurance of 150l. for five years, on the life of a perfon whofe age is 39, may be found, by the firft rule, to be nearly three guineas per ann. fuppofing intereft at 3 per cent. and the probability of duration of human life, as they are given in Dr Halley's Table of Obfer. vations. But fuch an affurance could not be made in this fociety without an annual payment of 51. Neither is the plan of this fociety at all adapted to the circumftances of perfons who want to make affurances on particular furvivorships. For example: a perfon poffeffed of an eftate or falary, which must be loft with his life, has a perfon dependent upon him, for whom he defires to fecure a fum of money payable at his death. But he defires this only as a fecurity againft the danger of his dying first, and leaving a wife, or a parent, without fupport. In these circumftances he enters himself into this fociety; and, by an annual payment of 51. intitles his nominee at his death to 9 150l. In a few years, perhaps, his nominee hap pens to die; and having then loft the advantages he had in view, he determines to forfeit his for mer payments, and to withdraw from the society. The right method, in this cafe, would have been, to have taken from fuch a perfon the true value

2 5 3

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of the fum affured," on the fuppofition of non- in old age, when incapable of labour, may, in payment, provided he should furvive." In this this fociety, purchase an annuity, to commence way he would have chofen to contract with the, at any future year of his life, and to continue du fociety: and had he done this, he would have ring the remainder of his life; and he may do this paid for the affurance (fuppofing intereft at 3 per at a very small expenfe, if he is young, and willcert. his age 30, the age of his nominee 30, and ing to wait for the commencement of his annuity the values of lives as given by M. De Moivre) 31. till he is 55 or 60 years of age. In fhort, there 8.s. in annual payments, to begin immediately, are no kinds of affurances on lives and furvivorand to be continued during the joint duration of fhips, which this fociety does not make. In dohis own life, and the life of his nominee. None ing this, it follows the rules which have been gi of thefe objections are applicable to the plan of ven by the beft mathematical writers on the docthe fociety which meets at Blackfriars bridge, trine of life annuities and reverfions, particularly and which has juftly styled itself the Equitable So- Mr Simpfon: (See ANNUITIES, Sec. II.) and, ciety for Afurances on Lives and Survivorships. in order to gain fuch a profit as may render it a The bufinefs tranfacted by this fociety is fo exten- permanent benefit to the public, and enable it to five, and it is governed fo entirely by calculations, bear the expenses of management, it takes the founded on the best rules and obfervations, that advantage of making its calculations at fo low an it cannot but prove one of the greateft public be- intereft as 3 per cent. and from tables of the pronefits. It was established in 1762, in confequence babilities and values of lives in London, where of propofals which had been made, and lectures (as in all great towns) the rate of human mortality recommending fuch a defign, which had been is much greater than is common among mankind. read by Mr Dodfon, the author of the Mathema- This fociety has lately made a particular inquiry tical Repofitory. It affures any fums or reverfion- into its own ftate, as to profit and lofs, by all the ary annuities, on any life or lives for any number bufinefs it has tranfacted from its firft inftitution. years, as well as for the whole continuance of This inquiry was made in three deferent method., the lives; and in any manner that may be best propofed to the directors by Dr Price, the author adapted to the views of the perfons affured: that of the Treatife on Reverfionary Payments; and the is, either by making the affured fums payable cer- refult has been, that it appears, that a much tainly at the failure of any given lives; or on con- fmaller proportion of the perfons affured have dition of furvivorship; and alfo, either by taking died than hould have died, according to the tables the price of the affurance in one prefent payment, for London, from which the calculations have or in annual payments, during any fingle or joint been made, or even according to Dr Halley's talives, or any terms lefs than the whole poffible ble for Breflaw; that, for this reason, the claims duration of the lives. Any perfons, for inftance, have been much lefs than they should have been ; who depend on incomes which must be loft when and that the fociety has for many years been enthey die, or who are only tenants for life in eftates, joying an income fome thousands per annum greatmay, if they want to borrow money, be enabled er than it wants, and a furplus flock of near 40,000l. 10 give fufficient fecurity, by affuring fuch fums over and above what is neceffary to enable it to as they want to borrow in this fociety, and affign make good all its engagements. The fociety finding the policy; in confequence of which, the len- ing itself thus well fecured against future hazards, der will, during the term of the affurance, be and being unwilling to take from the public an guarded against all danger of lofing his principal extravagant profit, refolved, in June 1777, to reby the death of the borrower. In the fame way, duce the future payments for affurances one tenth; clergymen, counsellors, perfons holding any pla- and alfo to return to the perfons then affured one ces of profit, traders, and others, who have fa- tenth of all the payments which they had made. milies, whofe fubfiftence depends on the continu- From the preceding account of this fociety is ance of their lives, may here be enabled to make manifeft, that its business is fuch, that none but fome provifion for their families after their decease. fkilful mathematicians are qualified to conduct it. All perfons who enjoy annuities for the lives of The intereft of the fociety therefore abfolutely reothers, may here fecure themselves against the lofs quires, that it fhould make the places of those who they would fuftain, fhould they furvive the per- manage its bufinefs fo advantageous, as to induce fons on whofe lives the annulics depend, by ma- the abreft mathematicians to accept them; and to king affurances which should entitle them to any take care, on any future vacancies, to pay no refums, payable on condition their furvivorthip gard in filling them up, to any other confidera fhould take place. Any perfon entitled to an tions than the ability and integrity of the candi eftate, annuity, legacy, or office, after another dates. One of the great public advantages attendperfon, provided he furvives, may here fecure ing it is, that it has eftablished an office, where not fome equivalent for his family at his deceafe, pro- only the bufinefs we have defcribed is tranfacted vided he does not furvive.-Hufbands may, in with faithfulnefs and skill; but where alfo all whe this fociety, fecure annuities for their wives, pro want folutions of any questions relating to life an vided they fhould leave them widows. Parents, by nuities and reverfions may apply, and be fure of affuring the lives of their children when infants, receiving juft antwers. In 1782, the fociety adopt till they attain a given age, may fecure for them, éd new tables, formed upon the probabilities fhould they live to that age, fuch fums as may life at Northampton, inftead of thofe formed from be neceffary to put them out to apprenticeships, the London bills of mortality. And to compen or to make capitals or fortunes for them, with fate the affured for their former payments, which which to fet out in bufinefs, or to marry. Any per had been fo much higher than the new rates, fons, apprehenfive of being left without fupport addition was made to their claims of L1: 10 pe

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