Insurance Law Implications of Delay in Maritime Transport
Implied condition as to the commencement of risk
9.1 Section 42 of the MIA 1906 states that in voyage policies insured ‘at and from’ or ‘from’ a particular place, there is an implied condition that the adventure shall be commenced within reasonable time, failure of which gives the insurer the right to avoid the contract. The words ‘at and from’ or ‘from a particular place’ do not import a warranty or a representation that the vessel is already at the place when the policy is made.1 The fact that s 42 applies merely to voyage policies rests upon the rationale that delay in the nature of abandoning the voyage or changing the risk undertaken with respect to the voyage initially insured should no longer be binding upon the insurer. Albeit there is a fair number of cases decided prior to the enactment of the MIA, the section has not been much litigated nor has it been the subject of considerable debate following its enactment.