WARRANTIES IN MARINE INSURANCE

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Section 35 of India marine insurance act 1963 and section 33 of UK marine insurance act 1906 defines a warranty as a promissory warranty, that is to say a warranty by which the assured undertakes that some particular thing shall or shall not be done, or that some condition should be fulfilled, or whereby he affirms or negates the existence of a particular state of facts. A warranty, as above defined, is a condition which must be exactly complied with, whether it be material to the risk or not. If it be 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. There are two types of warranties:-
1) EXPRESS WARRANTY:- An express warranty is the warranty, which must be included in, or written upon the policy, or must be contained in some document incorporated by reference into the policy.
      There are a number of express warranty in marine insurance like warranty of neutrality during war, institute warranty etc. But a common example with reference to H&M policy being a warranty that the vessel is classed with a particular society and that her class will be maintained. The wording is likely to be, for example " warranted LR classed and class maintained"

2) IMPLIED WARRANTY:- These are not written in the policy but are implied by the law to exist in the contract. They must be strictly complied with in the same way as expressed warranties. There are two major implied warranties in marine insurance policies covering seaworthiness and legality.
a) Seaworthiness:- With reference to H&M policy, if the policy is voyage policy, there is an implied warranty that at the commencement of the voyage, the ship shall be seaworthy for the purpose of particular adventure. A ship is deemed to be seaworthy when reasonably fit in all respects to encounter the ordinary perils of the sea of the adventure insured.
       But if it is a time policy, there is no implied warranty that the ship shall be seaworthy at any stage of adventure but where, with the privity of the assured , the ship is sent to the sea in an unseaworthy state, the insurer is not liable for any loss attributable to unseaworthiness.
b) Legality:- There is an implied warranty that the adventure insured is a lawful one and that, so far as assured can control it, the adventure will be carried out in a lawful manner.
                 AN EXPRESS WARRANTY DOES NOT OVERRIDE AN IMPLIED WARRANTY UNLESS THE TWO CONFLICT.
                                             

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