Introduction

8.1 The cause of the loss for which the assured seeks indemnification under the insurance contract is determined as matters of both fact and law. The policy wording and the way the loss has been brought about will be interpreted to find out what the parties to the contract agreed as to the risk that the insurer would cover, and whether that has been satisfied on the facts. A statutory guidance for such construction is found under section 55(1) of the Marine Insurance Act 1906 (MIA 1906), which is not confined to marine insurance but applies to all types of insurance contracts.1