Continuation Clause

Continuation clause. In English time policies it has been usual to provide by a clause attached to the policy, called the continuation clause, that if at the end of the period of insurance the ship is at sea, the insurance may be extended until her arrival at some port, Arnould's Marine Insurance, 8th Edn. P. 570. The Finance Act, 1901, (1 Edw. 7, c. 7), s. 11,provides that a policy of sea insurance shall not be invalid on the ground only that by reason of such a clause it may become available for a period exceeding twelve months, and a continuation clause is for this purpose defined as an agreement to the effect that in the event of the ship being at sea or the voyage otherwise not completed on the expiration of the policy, to subject-matter of the insurance shall be held covered until the arrival of the ship, or for a reasonable time thereafter not exceeding thirty days.