ADJUSTMENT

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ADJUSTMENT

ADJUSTMENT, maritime law. The adjustment of a loss is the settling and ascertaining the amount of the indemnity which the insured after all properallowances and deductions have been made, is entitled to receive, and theproportion of this, which each underwriter is liable to pay, under thepolicy Marsh. Ins. B. 1, c. 14, p. 617 or it is a written admission of theamounts of the loss as settled between the parties to a policy of insurance.3 Stark. Ev. 1167, 8. 2. In adjusting a loss, the first thing to be considered is, how thequantity of damages for which the underwriters are liable, shall beascertained. When a loss is a total loss, and the insured decides toabandon, he must give notice of this to the underwriters iii a reasonabletime, otherwise he will waive his right to abandon, and must be content toclaim only for a partial loss. Marsh. Ins. B.1, c.3, s.2; 15 East, 559;1 T. R. 608; 9 East, 283; 13 East 304; 6 Taunt. 383. When the loss isadmitted to be total, and the policy is a valued one, the insured isentitled to receive the whole sum insured, subject to such deductions as mayhave been agreed by the policy to be made in case of loss. 3. The quantity of damages being known, the next point to be settled,is, by what rule this shall be estimated. The price of a thing does notafford a just criterion to ascertain its true value. It may have been boughtvery dear or very cheap. The circumstances of time and place cause acontinual variation in the price of things. For this reason, in cases ofgeneral average, the things saved contribute not according to prune cost,but according to the price for which they may be sold at the time ofsettling the average. Marsh. Ins. B. 1, c. 14, s. 2, p. 621; Laws ofWisbury,art. 20 Laws of Oleron, art. 8 this Dict. tit. Price. And see 4 Dall. 430; 1Caines' R. 80; 2 S. & R. 229 2 S.& R. 257, 258. 4. An adjustment being endorsed on the policy, and signed by theunderwriters, with the promise to pay in a given time, is prima facieevidence against them, and amounts to an admission of all the factsnecessary to be proved by the insured to entitle him to recover in an actionon the policy. It is like a note of hand, and being proved, the insured hasno occasion to go into proof of any other circumstances. Marsh. Ins. B. 1,c. 14, s. 3, p. 632; 3 Stark. Ev. 1167, 8 Park. ch. 4; Wesk. Ins, 8; Beaw.Lex. Mer. 310; Com. Dig. Merchant, E 9; Abbott on Shipp. 346 to 348. SeeDamages.

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