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Warranties

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Warranties. Under the Marine Insurance Act 1906, section 33(1) states that a warranty means a promissory warranty, i.e., a warranty by which the assured undertakes that some particular thing shall or shall not be done or that some condition shall be fulfilled or whereby he affirms or negatives the existence of a particular state of facts.

A warranty is a condition, which must be complied, with exactly, whether it is material to the risk or not. If it were not so complied with, then, subject to any express provision in the policy, the insurer is discharged from liability as from the date of the breach of warranty, but without prejudice to any liability incurred by him before that date. The Institute Time Clauses (Hulls) 1983 permits breach or warranty under certain conditions: notice is given to the underwriters and amended terms and conditions complied with as well as agreement reached on additional premium.

A warranty may be express or implied. An express warranty must be included in the policy or must be contained in some document incorporated by reference into the policy. An express warranty does not exclude an implied warranty unless there is inconsistency between the two.

Implied warranties:

1. In a voyage policy there is an implied warranty that at the commencement of the voyage the ship shall be seaworthy for the purpose of the particular adventure insured. Where the voyage is performed in different stages, there is an implied warranty that at the commencement of each stage the ship is seaworthy. In a time policy there is no implied warranty that the ship shall be seaworthy at any stage of the adventure, but where, with the privity of the assured, the ship is sent to sea in an unseaworthy state, the insurer is not liable for any loss attributable to unseaworthiness.

2. There is an implied warranty that the adventure insured is a lawful one and that so far as the assured can control the matter, the adventure shall be carried out in a lawful manner.

3. In a voyage policy “at and from” or “from” a particular place, there is an implied condition that the voyage shall be commenced within a reasonable time, unless the delay was caused by circumstances known to the insurer before the contract was concluded or by showing that the insurer waived the condition.

 

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