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Act No. 2427 Section 159

Section 159

SEC. 159. In the case of a partial loss of a ship or its cost of repairs, equipments, the old materials are to be applied towards payment for the new, and unless other conditions are stipulated in the policy, a marine insurer is liable for the remaining cost of repairs, less deductions from such cost to be made in accordance with the following rules: 1. In the case of iron or steel ships, from date of original register to the date of accident: (a) Up to one year old.—All repairs to be allowed in full, except painting or coating of bottom, from which one-third is to be deducted. (b) Between one and three years.— between one and ducted off repairs to and renewal of woodwork of hull, three years' masts, and spars, furniture, upholstery, crockery, metal and glassware, also sails, rigging, ropes, sheets, and hawsers (other than wire and chain), awnings, covers and painting. One-sixth to be deducted off wire rigging, wire ropes, and wire hawsers, chain cables and chains, donkey engines, steam winches and connections, steam cranes and connections ; other repairs in full. (c) Between three and six years.—Deductions as above under clause (b), except that one-sixth be deducted off iron-work of masts and spars and machinery (inclusive of boilers and their mountings). (d) Between six and ten years.—Deductions as above under clause (c), except that one-third be deducted off ironwork of masts and spars, repairs to and renewal of all machinery (inclusive of boilers and their mountings), and all hawsers, ropes, sheets, and rigging. (e) Between ten and fifteen years.—One-third to be deducted off all repairs and renewals, except ironwork of hull and cementing and chain cables, from which one-sixth to be deducted. Anchors to be allowed in full. (f) Over fifteen years.—One-third to be deducted off all repairs and renewals. Anchors to be allowed in full. One-sixth to be deducted off chain cables. (g) Generally.—The deductions (except as to provisions and stores, machinery, and boilers) to be regulated by the age of the ship, and not the age of the particular part of her to which they apply. No painting bottom to be allowed if the bottom has not been painted within six months previous to the date of accident. No deduction to be made in respect of old material which is repaired without being replaced by new, and provisions and stores which have not been in use. 2. In the case of wooden or composite ships: When a ship is under one year old from date of original register at the time of accident no deduction new for old shall be made. After that period a deduction of one-third shall be made, with the following exceptions: Anchors shall be allowed in full. Chain cables shall be subject to a deduction of one-sixth only. No deduction shall be made in respect of provisions and stores which had not been in use. Metal sheathing shall be dealt with by allowing in full the cost of a weight equal to the gross weight of metal sheathing stripped off, minus the proceeds of the old metal. Nails, felt, and labor metalling are subject to a deduction of one-third. Fire insurance.

Read the full instrument → · Open the chapter this section belongs to: CHAPTER II.—Marine insurance. →

Other provisions in CHAPTER II.—Marine insurance.

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of July 4, 2026

CitationAct No. 2427 Section 159 (LawPlayer, data as of July 4, 2026)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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