a collision the underwriters are only liable for threefourths of the amount the assured has to pay any other person for damages done to his vessel or cargo therein. The other one-fourth, as well as the sums the assured may have to pay for loss of life and damage done to the cargo on board his own vessel, must be borne by

the assured himself.

By the Merchant Shipping Act Amendment Act (25 & 26 Vict. ch. 63), the shipowner's liability for the losses just mentioned is fixed for loss to ship or cargo at eight pounds per ton of the ship's register, and for loss to ship or cargo and personal injuries or loss of life, at fifteen pounds per ton of the ship's register. This tonnage is gross tonnage, without allowing any deduction for engine-room in steamers. The fixed percentage is the same whether the ship is worth more or less than the fixed amount per ton.

Under the Merchant Shipping Act Amendment Act 1862, the subject of limited liability is fully explained in the judgments of Dr. Lushington and the Judicial Committee of the Privy Council in the case of the Amalia. These judgments are reported at length in Mitchell's "Maritime Register" for 1863, pp. 879 and 976. There is a leading article on the same case, p. 1009. The case is also reported in the Jurist, vol. ix. N. S. p. 1111;* Law Journal, vol. xxxii. Adm. 191; Law Times and Weekly Reporter, vol. xii. 24.

*The Merchant Shipping Act, 1862 (25 & 26 Vic. cap. 63, sec. 54), provides that the owners of any ship, whether British

Adjustment of Claims under the Policy.

As will be readily perceived, these claims resolve themselves into two classes-that is, claims of total loss, and claims for partial loss,

Claims in respect of total loss arise either under a "valued" or an "open" policy. If they arise under a "valued" policy nothing remains to be done but to claim as damages the amount agreed upon-namely,

or foreign, shall not in cases when all or any of the certain events specified in the section of the Act occur, be answerable in damages in respect to loss of life or personal injury either alone or together with loss or damage to ships, boats, goods, merchandise, or other things to an aggregate amount exceed 15l. for each ton of their ship's tonnage; nor in respect of loss or damage to ships' goods, merchandise or other things, whether there be in addition loss of life or personal injury or not to an aggregate amount exceeding 81. to each ton of the ship's tonnage; such tonnage to be the registered tonnage in the case of sailing ships, and in the case of steam-ships the gross tonnage without deduction on account of the engine-room.

The case of the Amalia was heard by way of appeal to the Privy Council from an order or decree of the Right Hon. Dr. Lushington, Judge of the High Court of Admiralty in England, in a cause instituted by the respondents, as the owners of the above-named British steam-ship, for the purpose of obtaining a limitation of their liability in respect of a collision which happened between that vessel and a Belgian steam-ship called the Marie de Brabant, in consequence of which the Marie de Brabant and her cargo were totally lost, and several of those on board her drowned. The collision happened on the 15th May, 1863, in the Mediterranean Sea. It was held that when a collision takes place on the high seas between a British and a foreign vessel, the enactment applies equally to British and foreign vessels.

the sum stated in the policy: but, should they arise under an "open" policy the damages must be proved in the usual way.

Claims for total losses under open policies, and claims for partial losses under both valued and open policies, are subjected to precisely the same sort of inquiry with regard to the damages sustained.

In adjusting these latter claims it must be remembered that inasmuch as the fundamental principle upon which the entire contract of marine insurance is founded is indemnification, it follows that whenever a damage occurs the person suffering it can never recover an amount greater in value than the loss he has actually sustained. Consequently the first thing to be determined is the amount of such actual loss.

"total"

The mode of ascertaining the amount on a and a "partial" loss is different. The general rule is this-namely, if the loss is a "total" loss, to take the value of the subject-matter of insurance at the commencement of the voyage with the charges and premiums added, but without any regard to the rise and fall of markets, and the profit or loss consequent thereupon; while if the loss is a "partial" one, the rule is

to take the difference between the market value of the undamaged and the damaged as the extent of the loss. This, of course, has reference to cargo. The loss to the ship is the amount of repairs, refitting and expenses, less the deductions mentioned hereafter, and the loss on the freight will be the actual loss suffered.

The evidence which is necessary to support a claim for total loss under an "open" policy will be—

For the Ship.-Valuations of the value of the ship at the time she started on the voyage in which the loss happened.

These valuations can be made by shipbuilders, shipwrights, or old experienced shipowners, who knew the ship well and saw her just before she left. Inventories of the stores, outfit and furniture with their several values, and a statement of all moneys advanced to the crew out of their wages.

For the Cargo.-Invoices or bills of parcels showing the prime cost. Receipts or other vouchers for the purpose of proving the expenses charged in forwarding it, and for the commission paid in respect of it.

For the Freight.-The charter-party manifest or freight list, with a declaration that the cargo was actually put on board, or that the ship was ready to receive it, if it be dead freight.

These, together with the captain's protest and any other document calculated to prove the genuineness of the claim, should be submitted to the underwriters when the claim is made. Should the evidence turn out unsatisfactory, or the underwriters require any further particulars, it should be immediately furnished if reasonable and procurable.

The evidence necessary to support a claim for a partial loss under both "open" and "valued" policies will be

E

For the Ship.-The various surveys and the several tradesmen's bills or other vouchers for the repairs done and materials provided in pursuance of such surveys, together with the vouchers for all payments and disbursements made in consequence of the loss. Whenever the claim on the underwriters is for payments made for salvage services, full particulars should be required from the salvors for the use of the average stater. All old stores and materials replaced must be accounted for, and their value deducted from the amount charged for repairs.

For the Cargo.-A survey made by competent parties duly certifying that the damage arose from some or one of the perils insured against together with the extent of the damage sustained. A certificate given by competent judges as to what the value of the cargo would have been, supposing it to have arrived in safety and uninjured at its destination. And the bill of sale of the damaged goods, properly authenticated.

If a part of the goods be lost the owner of the cargo must supply the best possible evidence of the quantity shipped and the quantity delivered.

For the Freight.-A copy of the charter-party manifest or freight list, with a statement of the cargo lost or upon which no freight is payable, in consequence of the happening of some of the perils insured against.

In addition to the last mentioned evidence the captains, protest should always be supplied, as well as a statement of the jetty average expenses, which, although