sured had lent

a very unfavourable manner. In the case of Goddart v. Garret (a), the defendant had lent money on a bottomry Where the asbond, but had no interest in the ship or cargo-the money 3004 on botlent was 300%., and he insured 4507. on the ship; the plaintiff's bill was to have the policy delivered up: because the defendant was not interested in the ship or cargo.

PER CURIAM.-Take it that the law is settled, that if a man has no interest, and insures, the insurance is void, though it be expressed in the policy, "interested or not interested." The reason that the law goes upon is, that insurances were made for the benefit of trade, and not that persons unconcerned therein, and who were not interested in the ship, should profit thereby; and, where one who would have the benefit of the insurance, he must renounce all interest in the ship. And the reason why the law allows that a man having some interest in the ship or cargo may insure more, or five times as much, is, that a merchant cannot tell how much or how little his factor may leave in readiness to lade on board his ship. PER CURIAM.-Decree the policy to be delivered up to be cancelled.

In another case of Le Pypre v. Farr (b), which was a policy of insurance on goods by agreement, valued at 600%., and the assured not to be obliged to prove any interest; the Lord Chancellor ordered the defendant to discover what goods he had on board; for, although the defendant offered to renounce all interest to the assurers, yet it must be referred to the master, to examine the value of the goods saved, and to deduct it out of the value or sum of 6007., at which the goods were valued by the agreement. And by this decision, the Court held that the assured was only to recover an indemnity, which is the true intent and meaning of the

contract.

But, notwithstanding the proper and legitimate view the Courts of Justice took of these descriptions of policies-the practice still continued of not confining the insurance to real

(a) 2 Vern. 269, Trin. Term. 1692.

(b) 2 Vern. 716.

tomry, but having no interest in the ship or cargo insured, 4501. on the ship policy decreed to be delivered up to be can

celled.

The statute, 19 Geo. 2, c. 37.

The preamble of the act.

risks, and in the departing entirely from the spirit of the contract of insurance, which instrument, for the protection of trade, had first been introduced, bad and dishonest men began to endeavour to make themselves fortunes at once, by means of perverting the design and utility of this contract, which ought by law to be confined to the real and serious risks, which were to be endured by merchants in fair dealing in trade, and where the assurer for a sufficient consideration, the premium, took upon him the assured's risk, the practice which began to spring up after the Revolution of insuring ideal risks, grew to such a pitch, that the Legislature at length considered it fit to interpose, and by an act of the Parliament to stay this dangerous mode of trade, and to give it an effectual check, and by strong restrictive rules, to settle what "interest" a merchant should by the statute law be required to have, in order to be allowed to recover what he was alone entitled to, a fair indemnity for his loss, from the persons who had undertaken upon themselves his risk.

Accordingly an act of 19 Geo. 2, c. 37, was passed, intituled "an act to regulate insurances on ships belonging to subjects of Great Britain, and on merchandises or effects laden thereon."

"Whereas it hath been found by experience, that the making assurances 'interest or no interest,' or without further proof of interest than the policy, hath been productive of many pernicious practices, whereby great number of ships, with their cargoes, have either been fraudulently lost or destroyed, or taken by the enemy in time of war; and such assurances have encouraged the exportation of wool, and the carrying on many other prohibited and clandestine trades, which by means of such assurances have been concealed, and the persons concerned secure from loss, as well to the diminution of the public revenue, as to the great detriment of traders; and by introducing a mischievous kind of gaming or wagering, under the pretence of assuring the risk on shipping and fair trade, the institution and laudable design of making assurances hath been perverted; and which was intended for the encourage

ment of trade and navigation, has in many instances been hurtful of, and destructive to the same.

to be effected on "interest or

"For remedy whereof be it enacted, that no assurance or No insurance assurances shall be made by any person or persons, bodies corporate, or politic, on any ship or ships belonging to his no interest.” Majesty, or any of his subjects, or on any 'goods, merchandises, or effects,' laden or to be laden on board of any such ship or ships, ' interest or no interest,' or without further proof of interest than the policy, or by way of gaming or wagering, or without benefit of salvage to the assurer, and that every such insurance shall be null and void (a).

"That assurance on private ships of war, fitted out by any of his Majesty's subjects, solely to cruise against his Majesty's enemies, may be made by the owners thereof, interest or no interest, free of average, and without benefit of salvage to the assurer: anything herein contained to the contrary thereof in anywise notwithstanding (b).

"That any merchandises or effects from any ports or places in Europe or America, in the possession of Spain or Portugal, may be assured in such way and manner as if this act had not been made (c).

Except on private ships of purpose of cruizing.

war for the

Except, also, on goods from any part or

place in Europe
or America, in
possession of
the crowns of

Spain and
Portugal.

money

All sums of bottomry or respondentia

lent on

upon any ship belonging to his Majesty's subjects, bound

"That all and every sum and sums of money to be lent on bottomry or at respondentia, upon any ship or ships belonging to any of his Majesty's subjects, bound to or from the East Indies, shall be lent only on the ship, or on the merchandises, or effects laden, or to be laden on board of such ship, and shall be so expressed in the condition of the bond; and the benefit of salvage shall be allowed to the lender, his agents or assigns, who alone shall have a right to make assurance on the money so lent: and no borrower of money on bottomry or respondentia, as aforesaid, shall recover more on any assurance than the value of the ship or of the mer- ship or goods chandises or effects laden on board such ship, exclusive of and the lender the money so borrowed; and in case it shall appear that the value of his share of the ship, or in the merchandises or effects laden on board, doth not amount to the full sum or (c) Sect. 3.

(a) Sect. 1.

(b) Sect. 2.

to or from the

East Indies,

shall be lent

only on the

laden thereon;

alone shall have

a right to insure the money

lent.

The 19 Geo. 2,
c. 37, does not
extend to
foreign ships
or "goods."

sums he had borrowed as aforesaid, such borrower shall be responsible to so much of the money borrowed as he hath not laid out on the ship or merchandise laden thereon, with lawful interest for the same, together with the assurance and all other charges thereon, in the proportion the money not laid out shall bear to the whole money lent, notwithstanding the ship and merchandise be totally lost" (a). Upon the last section it is observable that none but the lender shall have a right to make insurance on the money lent. It is also to be observed, that this regulation of insurance on bottomry or respondentia, extends only to East India ships: and, therefore, an insurance of a respondentia interest upon any other ship, may be made in the same manner as they used to be before this act.

It has been decided upon this clause of the act, that it never meant, or intended to make, any alteration in the manner of insurances; and it was declared by the Court, in Glover v. Black, before referred to (b), that the established law and usage of merchants was, that respondentia and bottomry must be specified by name in the policy of insurance.

By the first section of the act, all policies of insurance made contrary to it are absolutely void, and of no effect.

I proceed now to consider, first, the cases which have, by the decisions of the Courts upon this act, been held not to fall within the description.

The 19 Geo. 2, c. 37, does not extend to insurances on foreign property, for in fact they do not come within the words of the statute. This point has also been set at rest by several decisions in the courts of law, Thelluson v. Fletcher (c); and it was much discussed in the case of Craufurd v. Hunter (d). In this case one question was, the insurance being in Dutch prize-ships, whether a count in the declaration averring that the plaintiffs, as commissioners for the disposal of Dutch ships and effects, made the insurance,

(a) Sec. 5.
(b) Ante, p. 15.
(c) Doug. 315.

(d) 8 T. R. 13, and see Lucena v. Craufurd, 1 Taunt. 325, referred to at ante, p. 7.

and that the said ships, or any of them, were not belonging to his Majesty, or any of his subjects, was good. The point was argued on demurrer.

Lord Kenyon." This question depends on the construction of the statute 19 Geo. 2, c. 37; for, notwithstanding the argument, I think, at common law, a person might insure without having any interest; but the preamble and the enacting clause remove all doubt: for the act recites the mischief and inconveniences that had arisen from making assurances 'interest or no interest,' and then it enacts (not declaring) that no such assurance shall be made, except in certain cases, which, for very wise and politic reasons, were excepted. Therefore I am satisfied that this count is good, unless on an insurance prohibited by the statute. But that statute only applies to ships belonging to his Majesty or any of his subjects, and does not extend to foreign ships."

In the recent case of Sutherland v. Pratt (a), the declaration stated, "that the plaintiff caused to be made a policy of insurance, purporting thereby and containing therein that Messrs. Boggs, Taylor, and Co., as well in their own names as in the name, &c., did make an assurance, and cause themselves to be assured, with the General Marine Insurance Company, 'lost or not lost,' at and from Bombay to London, upon any kind of goods, &c., &c., and beginning the adventure from the loading of said goods on board the said ship, and until the same should be there discharged and safely landed. The insurance was declared to be on 300 bales of cotton. The declaration went on in the ordinary form, and then averred that the said goods were, on 1st September, 1841, shipped at Bombay, on the said voyage; that the plaintiff was, during the said voyage, interested in the said goods in the said policy mentioned, and laden on board the said ship, to the amount insured; that the said insurance was made for the use and benefit and on the account of the plaintiff as aforesaid; that the said ship afterwards sailed on the said voyage, and being injured by tempestuous weather, (a) 11 M. & W. 296.

D