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HomeInsurance CodeDiv. 2Pt. 1Ch. 1Art. 5§ 1994 Marine Insurer Repair Expenses

§ 1994 Marine Insurer Repair Expenses

Insurance Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 1994 Marine Insurer Repair Expenses

This law says a ship insurance company must pay for the cost of fixing a ship when it has to go to port for repairs, and also must pay for any work the ship's crew does to save the ship or its cargo, even if the ship is later declared a total loss.

Key Takeaways

  • •The insurer pays all repair costs when a ship must go to port because of damage.
  • •If the insured (the ship's owner or crew) does work to recover the ship or cargo, the insurer also pays those labor costs.
  • •These payments are extra and do not replace any payout for a total loss of the ship.

Example

A cargo ship hits a reef and has to dock for repairs. The crew also spends time and money pulling the cargo back on board.

The insurance company has to cover the repair bill for the ship and also reimburse the crew for the labor they spent saving the cargo, and it still has to pay the full loss amount if the ship is later written off.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 1994 Marine Insurer Repair Expenses

A marine insurer is liable for all the expense attendant upon a loss which forces the ship into port to be repaired. Where it is agreed that the insured may labor for the recovery of the property, the insurer is liable for the expense incurred thereby. In either case, the liability for such expense is in addition to the liability for a subsequent total loss. (Enacted by Stats. 1935, Ch. 145.)

Last verified: January 11, 2026

Key Terms

marine insurerliabilityexpense attendant upon a losssubsequent total loss

Related Statutes

  • § 1966 Marine Insurer Liability Expenses
  • § 1965 Shipwreck Reshipment Liability
  • § 1979 Insurer'S Salvage Rights
  • § 1988 Marine Insurance Partial Loss
  • § 1997 Ship Repair Insurance Liability

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Insurance Code. Section 1994.
View Official Source