Marine and Aviation Insurance (War Risks) Act 1952

(15 & 16 Geo 6 1 Eliz 2 c 57)

An Act to make provision for authorising the Minister of Transport to undertake the insurance of ships, aircraft and certain other goods against war risks and, in certain circumstances, other risks; for the payment by him of compensation in respect of certain goods lost or damaged in transit in consequence of war risks; and for purposes connected with the matters aforesaid

Notes

In time of war commercial insurance or reinsurance against marine and aviation risks is virtually unobtainable. The purpose of the 1952 Act was to facilitate insurance arrangements by providing reinsurance to commercial insurers of British aircraft, vessels and cargo (s 1) or, in the absence of willing insurers, to provide insurance directly to assureds (s 2). The 1952 Act replaced the scheme originally contained in the War Risks Insurance Act 1939.

Agreements for re-insurance by Minister of Transport of war risks in respect of ships, aircraft and cargoes

1.—(1) The Board of Trade (hereafter in this Act referred to as “the Board”) may, with the approval of the Treasury, enter into agreements with any authorities or persons—

1. whereby the Board undertakes the liability of re-insuring any war risks against which a ship or aircraft is for the time being insured; and
   
2. whereby the Board undertakes the liability of re-insuring any war risks against which the cargo carried in a ship or aircraft is for the time being insured:

Provided that the Board shall not enter into an agreement whereby the Board undertakes the liability of re-insuring any war risks against which a ship or aircraft not being a British ship or British aircraft is for the time being insured, except in so far as they arise during the continuance of any war or other hostilities in which Her Majesty is engaged or arise after any such war or hostilities in consequence of things done or omitted during the continuance thereof.

(2) A copy of every agreement made in pursuance of this section shall, as soon as may be after the agreement is made, be laid before each House of Parliament; and if either House, within the period of fourteen days beginning with the day on which a copy of such an agreement is laid before it, resolves the agreement be annulled, the agreement shall thereupon become void except in so far as it confers rights or imposes obligations in respect of things previously done or omitted to be done, without prejudice, however, to the making of a new agreement.

In reckoning for the purposes of this subsection any such period of fourteen days as aforesaid, no account shall be taken of any time during which Parliament is dissolved or prorogued or during which both Houses are adjourned for more than four days.

(3) The reference in paragraph (a) of subsection (1) of this section to a ship or aircraft shall be construed as including a reference to any machinery, tackle, furniture or equipment of a ship or aircraft, and to any goods on board of a ship or aircraft, not being cargo carried therein, and the first reference in the proviso to that subsection to a ship or aircraft shall accordingly be similarly construed.

Notes

The power to reinsure is confined to British ships and British aircraft, and their cargoes. Contracts need not conform to the requirement in s 22 of the Marine Insurance Act 1906 of embodiment in a policy: Marine and Aviation Insurance (War Risks) Act 1952, s 7. The section in its original form referred to the Minister of Trade. His functions were subsequently transferred to the Board of Trade, whose functions are in turn exercised by the Secretary of State for Business, Enterprise and Regulatory Reform.

Insurance by Minister of Transport of ships, aircraft and cargoes

2.—(1) The Board may, with the approval of the Treasury, carry on business under and in accordance with all or any of the following provisions of this subsection, that is to say—

1. at any time when it appears to the Board that reasonable and adequate facilities for the insurance of British ships or British aircraft against war risks, or any description of such risks, are not available, for the insurance by the Board of such ships, or as the case may be, such aircraft, against such risks or, as the case may be, that description thereof;
   
2. during the continuance of any war or other hostilities in which Her Majesty is engaged, for the insurance by the Board of ships and aircraft (whether British or not);
   
3. at any time when it appears to the Board that reasonable and adequate facilities for the insurance of cargoes carried in ships or aircraft against war risks, or any description of such risks, are not available, for the insurance by the Board of such cargoes against such risks or, as the case may be, that description thereof;
   
4. during the continuance of any war or other hostilities in which Her Majesty is engaged for the insurance by the Board of cargoes carried in ships or aircraft;
   
5. during the continuance of any such war or hostilities, for the insurance by the Board of goods consigned for carriage by sea or by air, while the goods are in transit between the premises from which they are consigned and the ship or aircraft or between the ship or aircraft and their destination:

Provided that the Board shall not, by virtue of paragraph (b), (d) or (e) of this subsection, undertake the insurance of a ship, aircraft or cargo against risks other than war risks unless the Board is satisfied that, in the interests of the defence of the realm or the efficient prosecution of any such war or hostilities as aforesaid, it is necessary or expedient so to do.

(2) References in paragraphs (a) and (b) of the foregoing subsection to ships of any description and to aircraft of any description shall be construed as including references to any machinery, tackle, furniture or equipment of ships of that description and aircraft of that description respectively and to any goods on board of ships of that description and aircraft of that description respectively, not being cargo carried therein, and the reference in the proviso to that subsection to a ship or aircraft shall accordingly be similarly construed.

(3) In paragraph (e) of subsection (1) of this section the expression ‘‘the ship or aircraft”, in relation to goods consigned for carriage by sea or by air, does not include a vessel from which the goods are discharged for the purpose of being carried by sea or by air or into which they are discharged for the purpose of being landed.

Notes

This section contains the power to issue direct insurance where commercial cover is otherwise not available. Cover must normally be confined to war risks. Contracts need not conform to the requirement in s 22 of the Marine Insurance Act 1906 of embodiment in a policy: Marine and Aviation Insurance (War Risks) Act 1952, s 7.

Transitional provisions for compensation in respect of goods lost or damaged in transit after discharge or before shipment

3.—(1) Where a person satisfies the Board with respect to any goods—