Chapter VII Marine Insurance

①The term "marine insurance policy" as used in this Chapter means a non-life insurance policy under which the insurer (limited to a person that underwrites insurance as a business; hereinafter the same applies in this Chapter) promises to provide compensation for loss or damage arising from an accident relating to a voyage.

②Unless otherwise provided for in this Chapter, the provisions of Chapter II, Sections 1 through 4 and 6, and Chapter V of the Insurance Act (Act No. 56 of 2008) apply to marine insurance policies.

Unless otherwise provided for in this Chapter or in a marine insurance policy, an insurer is liable to compensate the relevant person for any and all loss or damage arising from accidents relating to voyages that occur to the insured property during the insurance period.

①An insurer is liable to compensate the relevant person for the amount to be paid by the insured to engage in marine salvage or share a general average.

②The provisions of Article 19 of the Insurance Act apply mutatis mutandis to the amount prescribed in the preceding paragraph. In this case, the phrase "amount of damage to be compensated for" in that Article is deemed to be replaced with "amount prescribed in Article 817, paragraph (1) of the Commercial Code (Act No. 48 of 1899)".

Under a marine insurance policy that covers a ship as the insured property (hereinafter referred to as a "ship insurance policy" in this Chapter), the value of the ship at the time of commencement of the insurance period constitutes the insured value.

Under a marine insurance policy that covers cargo as the insured property (hereinafter referred to as a "cargo insurance policy" in this Chapter), the total sum of the value of the cargo at the place and time of loading, the freight charges, and the costs for insurance constitutes the insured value.

When entering into a marine insurance policy, the prospective policyholder or insured must disclose the facts of any material particulars related to the possibility that any loss or damage that would be compensated for pursuant to the marine insurance policy will occur (hereinafter referred to as the "risk" in this Chapter).

If an insurer enters into a marine insurance policy, it must include the information specified in the following items for the categories set forth in those items in the document prescribed in Article 6, paragraph (1) of the Insurance Act, in addition to the information set forth in the items of that paragraph:

①If there is a change to a voyage before the commencement of the insurance period, the marine insurance policy ceases to be valid.

②If there is a change to a voyage during the insurance period, the insurer is not liable to compensate the relevant person for loss or damage arising from any accident that occurs after the change; provided, however, that this does not apply if the change is due to reasons not attributable to the policyholder or the insured.

③Once the port of arrival is changed and operations for making that change have begun, there is deemed to have been a change to the voyage even if the ship does not deviate from the route specified in the marine insurance policy.

In the following cases, an insurer is not liable to compensate for loss or damage arising from any accident that occurs after the relevant fact arises; provided, however, that this does not apply if the fact has no influence on the occurrence of the accident or the fact is due to reasons not attributable to the policyholder or the insured:

If there is a change to a ship specified in a cargo insurance policy, the insurer is not liable to compensate the relevant person for loss or damage arising from any accident that occurs after the change; provided, however, that this does not apply if the change is due to reasons not attributable to the policyholder or the insured.

①If a cargo insurance policy specifies how the insurance period, the insured amount, the insured property, the agreed insured value, the insurance premiums or the payment method thereof, the name of the ship, or the place of shipment, port of loading, port of discharge or place of arrival of the cargo (hereinafter referred to as the "details of the policy" in this Article) are decided, it is not required to include the details of the policy in the document prescribed in Article 6, paragraph (1) of the Insurance Act.

②In the case prescribed in the preceding paragraph, when a policyholder or an insured learns that the details of the policy have been finalized, they must notify the insurer of this without delay.

③If a policyholder or an insured intentionally or by gross negligence fails to notify the insurer as referred to in the preceding paragraph without delay, the cargo insurance policy ceases to be valid.

An insurer is not liable to compensate the relevant person for the following loss or damage; provided, however, this does not apply to the loss or damage set forth in item (iv) if the policyholder or the insured proves that they did not neglect to exercise due care in satisfying the requirements prescribed in that item at the time of departure of the ship:

If cargo constituting insured property arrives at the destination damaged or partially lost, the insurer is liable to compensate for the amount arrived at when the insured value (or the agreed insured value, if specified) is multiplied by the proportion of the amount set forth in item (i) to the amount set forth in item (ii):

If cargo that is the insured property is sold during a voyage due to force majeure, the insurer is liable to compensate for the amount arrived at when the amount set forth in item (ii) is deducted from the amount set forth in item (i):

An insurer may cancel a marine insurance policy if a policyholder or an insured intentionally or by gross negligence fails to inform it of the facts of material particulars relevant to risk or misinforms it of such particulars. In this case, the provisions of Article 28, paragraph (2) (limited to the part concerning item (i)) and paragraph (4), and Article 31, paragraph (2) (limited to the part concerning item (i)) of the Insurance Act apply mutatis mutandis.

The provisions of this Chapter apply mutatis mutandis to mutual insurance; provided, however, that this does not apply if the nature of the mutual insurance does not permit their application.