On the Settlement of Losses by Fire under Average Policies

Extract

Since the last article on the settlement of fire-claims under average policies appeared (April, 1857), a very important change has been adopted. The third clause of the Liverpool floating policies, known under the title of the “independent liability clause,” has been introduced, by the common consent of nearly all the Insurance Companies, and made part of the conditions of all London mercantile floating policies. The alteration is, beyond all doubt, a very considerable one in its practical effect. It will change entirely the mutual relation of the Companies in very many cases of joint insurances, and, if very great care be not taken at the outset, introduce no small share of doubt and difficulty in the relation of the Offices with the assured. It may, therefore, be worth while to offer a few remarks at the present moment on the change actually effected by the recent alteration of the average clause, and then make some practical suggestions as to the regulation of claims under the altered form of policy.