chapter  7
22 Pages

Parties

Dealings in subject matter insured 7.11 Whether interests in the subject matter of a contract of insurance can be created

or are transferable or transferred is governed by principles and rules of the law of property.19 Property may be dealt with in different ways, for example: where cargo is sold; a ship is mortgaged; or the right to receive performance under a contract, such as the payment of freight, is assigned. As these examples demonstrate, different types and descriptions of transfer are employed for different types of property. In particular, it is

15. [1924] AC 294. 16. However, for an important qualification of this principle, see post, §§24.48-24.89. 17. This possibility is acknowledged and preserved by the proviso to MIA 1906, s.15. 18. although subrogation does not fall within the conventional description of transmission by law. 19. It is neither necessary nor appropriate to consider the details in a book on the law of marine

an interest in the subject matter insured as ‘‘assignment’’ but the term is generally employed in law to refer to the transfer of a right of action (traditionally described as a chose in action) such as a right to receive freight.