i-law

Illegality in Marine Insurance Law


Page 187

Index

Index

  • breach of warranty
    • effect 50–1
    • Insurance Act 2015 164–6
    • law before 12
    • August 2016 24–5
  • Canada 160
    • warranty of legality issue 160
  • causation principle 65–8
  • common law illegality 53, 121–6
    • construction of policy 121–5
    • deliberate acts 121–3
    • insurance policies rendered illegal by public policy 125–6
    • wilful misconduct 121–3
  • common law illegality defence
    • warranty of legality distinguished 131–41
  • common law rules 129
    • necessary reform 129
    • supplementary instrument 129
  • Commonwealth jurisdictions 4
  • condition
    • warranty compared 47–8
  • consistency principle 68–9
  • continuing warranty 19
  • contract illegality
    • tort illegality distinguished 126–8
  • contract terms
    • classes 47
  • contracts rendered illegal by common law 96–113
    • common law 99
    • conduct of parties 98
    • corrective factors 105
    • consistency test 109
    • deterring unlawful or immoral conduct 110–11
    • development 96–7
    • different knowledge of parties 100
    • exceptions 107–9
    • general principles 97–107
    • innocent party, and 100
    • intention of parties 114
    • intention to commit legal wrong 99–100
    • knowledge of illegal intention 103
    • knowledge of illegality 105
    • maintaining integrity of courts 111–12
    • minor illegality 104
    • origin 96–7
    • participation 106
    • participation in illegal purpose 100
    • profit from illegality 109–10
    • proportionate test 112–13
    • protecting purpose of law 107–9
    • public policy, and 96–113
    • punishments 112
    • rationale behind public policy 107–13
    • reliance principle 106–7
    • remoteness 101–2
    • seriousness of illegality 105–6
    • statutory illegality, and 98–9
    • statutory illegality distinguished 113–15
  • contracts rendered illegal by statute 91–6
    • aiding and abetting 95
    • consequences of violation 92
    • directory requirement 97
    • exceptions 93–4
    • innocent party 94
    • knowledge of illegality 95
    • nature of contract, and 93
    • obligatory requirement 97
    • public interest, and 93
    • purpose of legislation 92–3
    • waiver 94–5
  • contract law
    • illegality defence 91–128
  • contract law illegality
    • application in insurance 115–26
  • crew
    • sufficient or competent 36
  • dangerous of adventure 139–40
  • de minimis rule 11–12
  • divisibility of warranty 49–50
  • ex turpi causa 55–6
    • importance in insurance 75–6
  • exception
    • warranty, and 15
  • express warranty 19
  • foreign law illegality 4, 143–51
    • criticism of current marine insurance law 149–50
    • English legal position 143–7
    • marine insurance law, and 148–50
    • possible methods for dealing with 150–1

    • Page 188

      requirements for effectiveness 146–7
    • violation of foreign law 145–6
  • formation of illegal adventure 34–6
  • illegal adventure
    • formation 34–6
    • forms 34–5
    • loading operation 35–6
    • performance, and 37
    • sail without licence or convoy 35
    • sufficient or competent crew 36
  • illegal adventure by statute 33
  • illegal adventures because of violation of public policy and common law 34
  • illegal adventures by King’s or Council’s order 33
  • illegal performance of marine insurance contracts 29–51
  • illegality defence 2
    • contract law 4
    • investigation 3
    • tort law 3
  • illegality defence in contract law 91–128
    • application in insurance contracts 91–128
    • contracts rendered illegal by common law 96–113
    • contracts rendered illegal by statute 91–6
  • illegality defence in tort law 55–90
    • application of rationales in insurance 81–5
    • application to insurance law 74–89
    • benefit principle in insurance 79–81
    • causation principle 65–8
    • consistency principle 68–9
    • ex turpi causa 55–6
    • general principles under insurance law 77–89
    • illegal act conducted by claimant subjectively 57
    • illegality of act committed by claimant because of defendant’s former tort 59–60
    • importance of exturpi causa 75–6
    • intention of statute principle 74
    • kinds of illegality 56–60
    • narrow and wider rule in insurance law 77–9
    • “no duty of care” principle 62–4
    • origin 55–6
    • principle based on 60–74
    • proper way of dealing in insurance law 85–7
    • proportionality principle 72–4
    • public conscience test 60–2
    • public policy, and 56, 60–2
    • reliance principle 64–5
    • seriousness of illegal conduct 69–72
    • specifity of issue in motor insurance 87–9
  • illegality of performance 36–42
    • agent, and 40–1
    • control, and 37–8
    • formation 38–40
    • knowledge of assured 42
    • origin 36–42
    • scope 36–42
    • so far as the assured can control the matter 40–2
    • species 38–40
    • violation of common law and public policy 40
    • violation of King’s or Council’s order and licence 38–9
    • violation of statute 38
    • violation of treaties between nations 39
  • implied warranty 19, 31
    • other than warranty of legality 20–4
  • Insurance Act 2015 161–75
    • application on warranty of legality 168–73
    • “basis of contract” clauses 174
    • breach of warranty 164–6
    • causal link and section 11 166–8
    • change of circumstances, and 169
    • change of law, and 169
    • effect of remedy of breach 171
    • market’s reaction on 173–175
    • P&I Club, and 174
    • random breach of warranty of legality 172
    • “risk has not been altered” 171
    • strict compliance with warranty 170
    • terms not relevant to actual loss, and 167
    • terms which define the risk as a whole, and 175
    • warranties 164–6
    • warranty of legality, and 161–75
  • intention of statute principle 74
  • Law Commission
    • reform recommendations 161–4
    • rejection of casual connection test 173
  • lawful
    • meaning 32–4
  • loading operation 35–6
  • marine insurance law of warranty 9–27
    • see also warranties
    • development 10–16
    • origin 10–16
  • motor insurance
    • specificity of illegality issue 87–9
  • New Zealand 158–9
    • warranty of legality issue 158–9
  • present warranty 19
  • proportionality principle 72–4
  • proportionate test 112–13
  • reform of section 41 4–5
  • reliance principle 64–5, 106–7
  • return on premium 50
  • sail without licence or convoy 35
  • seaworthiness 21–4
  • section 41
    • Marine Insurance Act 1906 42–51, 131–4
    • abolition of warranty of legality, proposal for 178–81
    • breach of warranty and loss 46–7
    • character and function of law, and 46
    • common law principles, and 179–80
    • exception, and 43–4
    • express terms, proposal for 177
    • insufficiencies 42–51
    • intention of law, and 45
    • intention of parties, and 44–5
    • nature of 131–4
    • post-contractual requirement 133–4
    • pre-contractual requirement 133–4
    • reform, need for 177
    • reform,

      Page 189

      proposal for 177–83
    • specificity 138–9
    • technology advances, and 179
    • violation, statutory illegality and 132–3
    • warranty of legality as implied warranty 47–51
  • statutory illegality rules
    • insurance, in 116–21
    • intention of assured 120
    • unauthorised insurer 116–20
  • strict compliance principle 11–12, 49
  • tort illegality
    • contract illegality distinguished 126–8
  • tort law
    • illegality defence 55–90
  • unauthorised insurer 116–20
  • violation of common law and public policy 40
  • violation of King’s or Council’s order and licence 38–9
  • violation of treaties between nations 39
  • waiver of warranty 25–7
  • warranty of legality
    • chaos of issue 1–2
    • common law illegality defence distinguished 131–41
    • development 1
    • importance of 48
    • intention of parties, and 49
    • other warranties distinguished 49–51
    • section 41
    • Marine Insurance Act 1906, and 42–51
    • waiver 49
  • warranties
    • breach 13
    • causation 12
    • classifications 19–20
    • condition compared 47–8
    • construction 16–18
    • context 18
    • de minimis rule 11–12
    • definition 13–14
    • development 10–16
    • early development 10–11
    • exception, and 15
    • fundamental principles 11
    • Insurance Act 2015 164–6
    • intention of policy in commercial context 20
    • origin 10–16
    • sole description of risk 14
    • strict compliance principle 11–12
    • words of policy and 17
  • warranties in contract law 9–10
  • warranty of legality 21
    • current status 1–2
    • importance of 29–30
    • “lawful” 32–4
    • Marine Insurance Act 1906 29
    • origins 3, 29, 30–2
  • warranty of neutrality 21
  • warranty of seaworthiness 21–4

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, click Log In button.

Copyright © 2026 Maritime Insights & Intelligence Limited. Maritime Insights & Intelligence Limited is registered in England and Wales with company number 13831625 and address 5th Floor, 10 St Bride Street, London, EC4A 4AD, United Kingdom. Lloyd's List Intelligence is a trading name of Maritime Insights & Intelligence Limited.

Lloyd's is the registered trademark of the Society Incorporated by the Lloyd's Act 1871 by the name of Lloyd's.