LexInter | September 7, 2019 | 0 Comments


Title VII: The maritime insurance and insurance contract

river and lake

Chapter I: General provisions.

Article L171-1

This title governs any insurance contract the purpose of which is to cover the risks

relating to a maritime operation.

The river and lake navigation insurance contract is governed by the provisions of

this title, with the exception of Articles L. 172-5, L. 172-11, L. 172-17, L. 172-26, L. 173-7,

  1. 173-13 (4 °) and L. 173-21 (2 °).

Article L171-2

The provisions of Articles L. 171-3 cannot be excluded by the parties to the contract,

  1. 172-2, L. 172-3, L. 172-6, L. 172-8, L. 172-9 (1st paragraph), L. 172-13 (2nd paragraph), L.

172-17, L. 172-20, L. 172-21, L. 172-22, L. 172-28 and L. 172-31.

Article L171-3

Any legitimate interest, including the expected profit, can be insured.

No one can claim the benefit of insurance if he has not suffered damage.

Article L171-4

Insurance can be taken out either on behalf of the policyholder or

on behalf of another specified person, or on behalf of whom he

will belong.

The declaration that the insurance is taken out on whose behalf it will belong is valid

both as insurance for the benefit of the policyholder and as a stipulation for

others for the benefit of the beneficiary of the said clause.

Article L171-5

This title does not apply to insurance contracts whose purpose is to guarantee

risks relating to pleasure boating.

These contracts are subject to the provisions of Titles I, II and III of this book. However,

the provisions of article L. 124-3 do not preclude the application of the rules

concerning the allocation of the insurance indemnity to the constitution of the limitation fund

as provided for in Articles L. 173-23 and L. 173-24.

Chapter II: Rules common to the various insurances


Section I: Conclusion of the contract.

Article L172-1

Insurance has no effect when the risks have not started in both

month of the engagement of the parties or of the date which has been fixed for assumption of responsibility.

This provision is only applicable to subscription policies for the first feed.

Article L172-2

Any omission or any inaccurate declaration by the insured likely to reduce

significantly the insurer’s opinion on the risk, whether or not it has influenced the damage

or on the loss of the insured object, cancels the insurance at the request of the insurer.

However, if the insured provides proof of his good faith, the insurer is, unless otherwise stipulated

more favorable with regard to the insured, guarantor of the risk in proportion to the premium

perceived in relation to that which he should have perceived, except in cases where he establishes that he would not have

not covered the risks if he had known them.

The premium remains with the insurer in the event of fraud by the insured.

Article L172-3

Any modification during the contract, either of what was agreed upon during its formation,

either of the insured object, which results in a significant aggravation of the risk, leads to the

termination of the insurance if it has not been declared to the insurer within three days when

the insured is aware of it, excluding public holidays, unless the latter provides the

proof of good faith, in which case the provisions of the second

paragraph of Article L. 172-2.

If this aggravation is not the fault of the insured, the insurance continues, subject to

increase in the premium corresponding to the aggravation that has occurred.

If the aggravation is the fault of the insured, the insurer can either terminate the contract within three

days from the moment he became aware of it, the premium having been acquired, or demand

a premium increase corresponding to the aggravation that has occurred.

Article L172-4

Any insurance made after the accident or the arrival of the insured objects or the vessel

carrier is void, if the news was known, before the conclusion of the contract, instead

where it was signed or where the insured or insurer was located.

Article L172-5

Insurance on good or bad news is void if it is established that before the

conclusion of the contract the insured was personally aware of the loss or

the insurer of the arrival of the insured objects.

Article L172-6

If the insurer establishes that there has been fraud on the part of the insured or his representative,

insurance taken out for a sum greater than the actual value of the insured item

is zero, and the premium remains acquired.

The same applies if the insured value is an agreed value.

Article L172-7

In the absence of fraud, the contract is valid up to the real value of the things

insured and, if approved, for the entire sum insured.

Article L172-8

Cumulative insurance for a total sum greater than the value of the item

insured are void if they were contracted with intent to fraud.

Article L172-9

Cumulative insurance taken out without fraud for a total sum exceeding the

value of the insured thing are only valid if the insured brings them to the attention of

the insurer to whom he is requesting payment.

Each of them produces its effects in proportion to the sum to which it applies,

up to the full value of the insured item.

Article L172-10

When the sum insured is less than the real value of the insured objects, except in the case of

of approved value, the insured remains his own insurer for the difference.

Section II: Obligations of the insurer and the insured.

Article L172-11

The insurer is liable for material damage caused to objects insured by any fortune

by sea or by an event of force majeure.

The insurer also responds:

1 ° The contribution of the insured objects to general average, except if this comes from a

risk excluded by insurance;

2 ° Costs incurred as a result of a covered risk in order to preserve the insured object of a

material damage or to limit the damage.

Article L172-12

The “Damage allowance” clause frees the insurer from all damage, either common or

particular, except in cases which give rise to abandonment; in such cases,

the insured has the option between abandonment and damage action.

Article L172-13

The insured risks remain covered, even in the event of fault by the insured or his

land attendants, unless the insurer establishes that the damage is due to

lack of reasonable care on the part of the insured to protect the objects from

risks occurred.

The insurer is not liable for intentional or inexcusable faults on the part of the insured.

Article L172-14

The risks remain covered under the same conditions in the event of fault by the captain

or the crew, except as stated in article L. 173-5.

Article L172-15

The insured risks remain covered even in the event of a forced change of route,

journey or ship, or in case of change decided by the captain outside of

the shipowner and the insured.

Article L172-16

The insurer does not cover the risks:

  1. a) civil or foreign war, mines and all machinery of war;
  2. b) piracy;

(c) capture, taking or detention by any government or authority whatsoever;

  1. d) riots, popular movements, strikes and lockouts, acts of sabotage

or terrorism;

  1. e) damage caused by the insured object to other goods or persons, except for what is

stated in Article L. 173-8;

  1. f) claims due to the direct or indirect effects of explosion, heat release,

radiation from transmutations of atomic nuclei or radioactivity, as well

that claims due to the effects of radiation caused by the artificial acceleration of


Article L172-17

When it is not possible to establish whether the accident is caused by a risk of war or a

sea ​​risk, it is deemed to be the result of a sea event.

Article L172-18

The insurer does not guarantee:

  1. a) damage and material loss resulting from the inherent defect of the insured object, except

which is stated in article L. 173-4 regarding the hidden defect of the vessel;

  1. b) damage and material loss resulting from fines, confiscations,

sequestration, requisitions, sanitary or disinfection measures or following

blockade violations, acts of smuggling, prohibited or clandestine trade;

  1. c) damages or other indemnities for any foreclosures or sureties

data to release the seized objects;

  1. d) damage which does not constitute material damage and loss reaching

directly the insured object, such as unemployment, delay, course difference, obstacle brought

to the business of the insured.

Article L172-19

The insured must:

1 ° Pay the premium and the costs, at the place and at the times agreed;

2 ° Take reasonable care of everything relating to the ship or the merchandise;

3 ° State exactly, when concluding the contract, all known circumstances

of him which are of such a nature as to make the insurer appreciate the risk which he assumes;

4 ° Declare to the insurer, insofar as he is aware of them, the increased risks

that occurred during the contract.

Article L172-20

Failure to pay a premium allows the insurer to either suspend the insurance or

request its termination.

The suspension or termination does not take effect until eight days after it has been sent to the insured, to his

last known address of the insurer, and by registered letter, a formal notice

to have to pay.

Article L172-21

The suspension and termination of insurance for failure to pay a premium are

without effect with regard to bona fide third parties, beneficiaries of the insurance by virtue of a

transfer prior to notification of suspension or termination.

In the event of a claim, the insurer may, by an express clause appearing in the rider

documentary, oppose to these beneficiaries, in due competition, the compensation of the

premium relating to the insurance of which they claim the benefit.

Article L172-22

In the event of reorganization or judicial liquidation of the insured, the insurer may, if the

in default was not followed by payment, terminate the current policy, but the termination

has no effect with regard to the bona fide third party, beneficiary of the insurance, by virtue of a

transfer prior to any loss and notification of termination.

In the event of withdrawal of authorization, reorganization or judicial liquidation of the insurer,

the insured has the same rights.

Article L172-23

The insured must contribute to the rescue of the insured objects and take all measures

conservatories of its rights against responsible third parties.

He is liable towards the insurer for the damage caused by the non-performance of this

obligation resulting from his fault or negligence.

Section III: Payment of compensation.

Article L172-24

Damages and losses are settled in damage, except for the option for the insured to opt for the

abandonment in the cases determined by law or by agreement.

Article L172-25

The insurer cannot be forced to repair or replace the insured items.

Article L172-26

The contribution to general average, whether temporary or definitive, as well as the costs

assistance and rescue are reimbursed by the insurer, in proportion to the

value insured by him, reduced, if need be, for any particular damage to his charge.

Article L172-27

The abandonment can be neither partial nor conditional.

It transfers the rights of the insured over the insured objects to the insurer, at the expense of

pay the entire sum insured and the effects of this transfer go back between

parties when the insured notifies the insurer of his wish to abandon.

The insurer may, without prejudice to the payment of the sum insured, refuse the transfer of


Article L172-28

The insured who has made an inaccurate declaration relating to the loss in bad faith is forfeited

of the benefit of insurance.

Article L172-29

The insurer who has paid the insurance indemnity acquires, up to the amount of its payment,

all the rights of the insured arising from the damage which gave rise to the guarantee.

Article L172-30

If the same risk has been covered by several insurers, each is not liable, without

solidarity with others, only in the proportion of the sum insured by him, which

constitutes the limit of its engagement.

Article L172-31

Actions arising from the insurance contract are prescribed by two years. The prescription runs

against minors and others incapable.

Chapter III: Rules specific to various insurances


Section I: Body insurance.

Article L173-1

Ship insurance is taken out, either for one trip or for several trips

consecutive, or for a fixed period.

Article L173-2

In travel insurance, the guarantee runs from the start of loading until the end

of unloading and at the latest fifteen days after the arrival of the vessel at destination.

In the event of a ballast voyage, the guarantee runs from the moment the vessel starts.

until the ship is moored on arrival.

Article L173-3

In time insurance, the risks of the first and last day are covered by


Days run from zero to 24 hours, depending on the time of the country where the police have been


Article L173-4

The insurer does not cover damage and loss resulting from an inherent defect in the vessel,

unless it is a hidden defect.

Article L173-5

The insurer does not cover damages and losses caused by the intentional fault of the


Article L173-6

When the insured value of the vessel is an agreed value, the parties agree not to

reciprocally any other estimate, subject to the provisions of Articles L. 172-6

and L. 172-26.

Article L173-7

Insurance on good arrival can only be taken out, on pain of nullity, with the agreement

the ship’s insurers.

When an amount is insured for this reason, the justification of the insurable interest results from

acceptance of the sum thus guaranteed.

The insurer is only liable in cases of total loss or abandonment of the vessel at the

following a risk covered by the policy; he has no right to the abandoned property.

Article L173-8

With the exception of personal injury, the insurer guarantees the reimbursement of

damages of any kind for which the insured would be liable on the recourse of third parties in the event of

collision by the insured vessel or collision of this vessel against a vessel, fixed body,

mobile or floating.

Article L173-9

In travel insurance or for several consecutive trips, the entire premium is

acquired by the insurer, as soon as the risks start to run.

Article L173-10

In time insurance, the stipulated premium for the entire duration of the guarantee is acquired

in the event of total loss or neglect at the expense of the insurer. If the total loss or

case of neglect is not his responsibility, the premium is acquired over time

accrued until total loss or notification of abandonment.

Article L173-11

In the settlement of damages, the insurer only reimburses the cost of replacements and

repairs recognized as necessary to restore the vessel to a good seaworthy condition,

the exclusion of any other indemnity for depreciation or unemployment or any other cause

whether it be.

Article L173-12

Regardless of the number of events that have occurred during the term of the policy, the insured is

guaranteed for each event up to the amount of the insured capital, except the right for

the insurer to request an additional premium after each event.

Article L173-13

The abandonment of the vessel can be carried out in the following cases:

1 ° Total loss;

2 ° Repair to reach three quarters of the agreed value;

3 ° Impossibility of repairing;

4 ° No news for more than three months; the loss is deemed to have occurred at the

date of the latest news.

Article L173-14

In the event of the alienation or bareboat charter of the vessel, the full insurance continues

right in favor of the new owner or the charterer, on condition that he informs

the insurer within the ten day period and to perform all the obligations of which the insured was

owed to the insurer under the contract.

The insurer will however be free to terminate the contract within one month of the day on which he

received notification of disposition or charter. This termination will only take effect

fifteen days after its notification.

The alienator or the lessor remains liable for the payment of the premiums due before

alienation or charter.

Article L173-15

The alienation of the majority of the shares of a vessel in co-ownership alone entails the application

of article L. 173-14.

Article L173-16

The provisions of this section are also applicable to contracts

insurance concerning the vessel which is only insured for the duration of its stay in

ports, roadsteads or other places, whether afloat or in dry dock.

They are applicable to ships under construction.

Section II: Insurance on faculties.

Article L173-17

The goods are insured, either by a policy having effect only for one trip,

or by a so-called floating font.

Article L173-18

The goods are insured without interruption, wherever they are

found, within the limits of the trip defined by the police.

Article L173-19

When part of the journey is made by land, river or air, the

Marine insurance rules are applicable to the entire trip.

Article L173-20

The abandonment of the faculties can be carried out in cases where the goods are:

1 ° totally lost;

2 ° Lost or damaged up to three quarters of their value;

3 ° Sold en route due to material damage to items insured by

following a covered risk.

Article L173-21

It can also take place in the following cases:

1 ° The unseaworthiness of the ship and if the delivery of the goods, by any means

transport whatsoever, could not start within three months;

2 ° For lack of news from the vessel for more than three months.

Article L173-22

In the event that the insured who has taken out a floating policy has not complied with the

obligations provided for by decree, the contract may be terminated without delay at the request of

the insurer, who is also entitled to premiums corresponding to unreported shipments.

If the insured is in bad faith, the insurer can exercise the right of recovery on the

payments made for claims relating to shipments subsequent to the

first intentional omission by the insured.

Section III: Liability insurance.

Article L173-23

Liability insurance only entitles the insured to reimbursement if the third party

injured party has been compensated and to that extent, except in the event of the compensation being affected

insurance to the constitution of the limitation fund, under the terms of article 62 of the law

n ° 67-5 of January 3, 1967 relating to the statute of ships and other seagoing vessels.

Article L173-24

In the event of the constitution of a limitation fund, the creditors whose rights are subject to

limitation, under the terms of articles 58 to 60 of law n ° 67-5 of 3 January 1967 relating to

status of ships and other seagoing vessels, have no action against the insurer.

Article L173-25

Liability insurance, the purpose of which is to repair damage caused to

third party by the ship and which are guaranteed under the terms of Article L. 173-8, does not produce

effect only in the event of insufficient sum insured by the body policy.

Article L173-26

Regardless of the number of events that have occurred during the term of the insurance

liability, the sum subscribed by each insurer constitutes, per event, the

limit of its engagement.

Chapter IV: Rules specific to the various insurance policies

river and lake navigation

Section I: Body insurance.

Article L174-1

Hull insurance covers loss and material damage to the boat and

its dependencies insured and resulting from any navigation accidents or events

force majeure except formal and limited exclusions provided for in the insurance contract.

Article L174-2

The insurer does not guarantee loss and damage when the boat undertakes the

travel in a condition rendering it unfit for navigation or insufficiently armed, or


Likewise, it does not guarantee loss and damage resulting from normal wear and tear of the

boat or its dilapidation.

Article L174-3

The insurer is liable for the contribution of the insured property to general average. Likewise,

when the goods on board all belong to the insured, the insurer guarantees the

losses which would have constituted general average if the goods had belonged to

to a third party.

Section II: Insurance on faculties.

Article L174-4

The insurance on faculties guarantees the loss and material damage caused to

goods by any navigation accidents or force majeure events except

formal and limited exclusions provided for in the insurance contract.

Article L174-5

The insurer is not responsible for the damage or loss that the sender or the recipient,

as such, caused by willful or inexcusable fault.

He is not liable for damage resulting from the inherent defect of the goods, resulting from

its internal deterioration, its withering, its casting, as well as the absence or

packaging defect, road shrinkage or due to rodents. However, the insurer

guarantees the damage resulting from the delay when the journey is abnormally delayed by

an event for which he responds.

Section III: Liability insurance.

Article L174-6

The insurer cannot pay all or part of the amount due to anyone other than the injured third party, as long as

that this third party has not been disinterested up to the amount of the said sum of

pecuniary consequences of the damaging event resulting in the liability of

the insured.

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