The Issues

2.01 In England, marine reinsurance was banned on gambling grounds by the MIA 17451 and the ban lasted until 1864. Thereafter reinsurance cases gradually came to be seen in the law reports, discussing, among other issues, the “as original and pay to be paid” clauses. The scope of such wordings has always been contentious. The meaning of these words intertwines with the nature of proportional (and some non-proportional) reinsurance. They aid determining the burden of proof of the reinsurer’s liability laid on the reinsured in its claim against the reinsurers. As seen below there are two views on the nature of reinsurance: