ABSTRACT
The fact that a policy may contain a continuation clause will not, provided that a definite period is specified in the policy, prevent it from being a time policy. This was made clear by Lord Denning MR in Compania Maritima San Basilo SA v Oceanus Mutual Underwriting Association (Bermuda) Ltd, The Eurysthenes18 who remarked that ‘… in any ordinary time policy, the Institute Time Clauses (Hulls) include a continuation provision in cl 4 [now cl 2] but that does not prevent the policy being a time policy’. The new cl 2 of the ITCH(95) states:
Under the new clause, the vessel is only held covered if, at the expiry of the policy, the vessel is: • at sea and in distress or missing; or • in port and in distress.
