(1) A policy of sea insurance made for time may contain a continuation clause as defined in this section, and such a policy shall not be invalid on the ground only that by reason of the continuation clause it may become available for a period exceeding 12 months.
(2) There shall be charged on a policy of sea insurance containing such a continuation clause the stamp duty specified in the Schedule in relation thereto in addition to the stamp duty which is otherwise chargeable on the policy.
(3) If the risk covered by the continuation clause attaches and a new policy is not issued covering the risk, the continuation clause shall be deemed to be a new and separate contract of sea insurance expressed in the policy in which it is contained, but not covered by the stamp thereon, and the policy shall be stamped in respect of that contract accordingly, but may be stamped without penalty at any time not exceeding 30 days after the risk has so attached.
(4) For the purposes of this section the expression “continuation clause” means an agreement to the following or the like effect, that is to say: that in the event of the ship being at sea or the voyage otherwise not completed on the expiration of the policy, the subject matter of the insurance shall be held covered until the arrival of the ship or for a reasonable time thereafter not exceeding 30 days.