Scottish Court of Session Decisions

Subject_1 INSURANCE.
Subject_2 DIVISION I.

Fault of the Insurer and Shipmaster.
Subject_3 SECT. V.

Valued Policy.

M'Nair
v.
Coulter

1765. June 21. & 1772. February 13.
Case No. No 24.

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James M'Nair, master of a ship belonging to his father, wrote to the latter from Barbadoes, acquainting him, that he was ready to sail for Virginia with a cargo, the value of which, along with the ship would be about L. 1200 currency. His father insured the ship at Glasgow, the policy bearing, “the said goods, body, tackle, &c. valued at L. 1000 without further account.” The vessel was lost off Bermudas. It afterwards appeared, that the information of the value was false, the real value of the ship and cargo not being a half of the sum insured; but there was no evidence that the father was accessory to the fraud. The son was prosecuted for having wilfully sunk the ship; but acquitted of that charge, and found guilty only of having sent fraudulent advice with a view to the insurance. In an action for the insured sum against the underwriters, the Lords found, that the policy did not oblige them to pay the sums at which the ship and cargo were insured, but only the real value, as it appeared on proof. But the House of Lords reversed the judgment, and decreed for payment of the sum in the policy.

Fol. Dic. v. 3. p. 331. Millar on Insurance.