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Warranty

There are two main types of warranties in Marine Insurance: Express Warranty and Implied Warranty. Express Warranties are explicitly stated in the policy, while Implied Warranties, such as seaworthiness and legality, are understood to exist by law. Breaching any warranty renders the policy void from the time of breach, affecting the insurer's liability for losses.

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Subhasis Bhattacharya
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54 views2 pages

Warranty

There are two main types of warranties in Marine Insurance: Express Warranty and Implied Warranty. Express Warranties are explicitly stated in the policy, while Implied Warranties, such as seaworthiness and legality, are understood to exist by law. Breaching any warranty renders the policy void from the time of breach, affecting the insurer's liability for losses.

Uploaded by

Subhasis Bhattacharya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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49

49. How many types of warranties are there in Marine Insurance? Give an
example of each type with reference to a hull and machinery policy of
insurance [Express, Disbursement, Seaworthiness, warranty of Legality]
Ans)
WARRANTY:- A warranty is a promise by the insured that a specified
state or condition will continue to exist for the duration of the policy.[A
breach of warranty makes policy void from time of breach (Notes)]. A
breach would entitles the infured (others) party to claim damages from
the party breaching the warranty and the contract remains in force.
Warranty may be
1) Express Warranty
2) Implied Warranty

1) Express Warranty:- Specifically it is written into the policy or


contained in some document (e.g. institute warranties). An expressed
warranty does not overside an implied warranty unless the two conflict.

2) Implied Warranty:- [Understood, seaworthy and Legality if all activities


are done into a legal way then it is covered by warranty]. These
warranties are not written in the policy but implied by law to exist in the
contract. They must be strictly complied with in the same way as
express warranties. These are two major implied warranties in marine
insurance policies covering seaworthiness and legality.

A) SEAWORTHINESS:
Under the M/A 1963 ship should be seaworthy at the commencement of
voyage for the purpose of the particular voyage insured. Thus a ship is deemed
to be seaworthy when reasonably fir in all respects to encounter the ordinary
perils of the seas of the Adventure insured where ship is sent to sea unseaworthy
with assured knowledge the insurer is not liable for any loss if the ship sent to
sea unseaworthy condition with the knowledge of the owners senior
management knowledge would include both express, clear knowledge (e.g. after
defects have been reported in writing by Master or Surveyor) and deliberately
turning a blind eye cover would only be lost where the known unseaworthiness
had caused the loss.
B) LEGALITY:
There is an implied warranty that the adventure insured is lawful and that so far
as the assured can control it, the adventure will be carried out in a lawful
manners. If the adventure is illegal at the time the insurance is affected, the
policy will be void. Thus drug running or gun-running trips or voyages to countries
or ports subject to a Govt. embargo, would be deemed unlawful.

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