ABSTRACT
The valuation is, according to s 27(3), binding only ‘as between the insurer and the assured’, though Lord Campbell in Irving v Manning12 was of the opinion that it enured for ‘all purposes’. In North of England Iron SS Insurance Association v Armstrong,13 the court, taking the agreed value of £6,000 into consideration, held that the insurers were entitled to recover from the assured the whole of the £5,000 which the assured had recovered from the owners of the ship responsible for the collision. On the effect of the agreement as to the value, Mr Justice Mellors commented:
In SS Balmoral v Marten,14 the insurers, who were asked by their assured to reimburse them their share of general average which they had contributed, were held liable to pay only that proportion of the salvage and general average losses which the policy value bore to the proved, or real, value of the ship.15 Lord Shand was adamant that:
Scrapping voyages A vessel which has, during the course of a time policy, to make a journey (referred to as ‘scrapping voyages’) to a scrap yard or other place for the purpose of being ‘broken up’ or ‘being sold for breaking up’ will be governed by cl 1.5 of ITCH(95),16 the relevant part of which states:
Unless previous notice and arrangements have been made, the scrap, and not the agreed value of the vessel at the time of loss, is to be taken as the figure for settlement of any claim for loss or damage. This is a contractual exception to the general rule contained in s 27(3) that the agreed value is conclusive.17
