Marine Insurance Act 1906 The Marine Insurance Act 1906 is a UK Act of Parliament regulating marine insurance . The Act applies both to "ship & cargo" marine insurance, and to P&I cover. The Act was drafted by Sir Mackenzie Dalzell Chalmers , who had earlier drafted the Sale of Goods Act 1893 . The Act is a codifying act, that is to say, it attempts to collate existing common law and present it in a statutory form. In the event, the Act did more than merely codify the law , and some new elements were introduced in 1906. The Marine Insurance Act 1906 has been highly influential, as it governs not merely English Law , but it also dominates marine insurance worldwide through its wholesale adoption by other jurisdictions. Two modern statutes, the Consumer Insurance Act 2012 and the Insurance Act 2015 have made amendments to the law of insurance.Overview The most important sections of this Act include:Schedule 1 of the Act contains a list of definitions; schedule 2 contains the model policy wording.Reform Two new statutes, the Consumer Insurance Act 2012 and the Insurance Act 2015 have addressed insurance in general , and have amended the law in several ways. Part 5 of the Insurance Act 2015 addresses "Good faith" as follows: Section 14 provides that "any rule of law permitting a party to a contract of insurance to avoid the contract on the ground that utmost good faith has not been observed by the other party is abolished. Accordingly, s,14 amends s.17 of the Marine Insurance Act 1906 to read: "A contract of marine insurance is a contract based upon the utmost good faith" and that section's subsequent words: "and, if the utmost good faith be not observed by either party, the contract may be avoided by the other party" are now omitted.
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