Chapter 1

Warranties – Express warranties, Implied Warranties

Warranties

According to marine insurance act a warranty is that by which the assured undertakes that some particular thing shall or shall not be done, or that some conditions shall be fulfilled, or whereby he alarms or negatives the existence of a particular state of tact’s. A warranty in a contract of marine insurance is substantially the same as a condition in a contract of sale of goods. These are the conditions and promises in the insurance contract. It gives the aggrieved party the right to avoid the contract. Warranty 1s an important condition in the insurance contract which is to be fulfilled by the insured.

There are two types of warranties. Expressed warranties and implied warranties. Ii the conditions are mentioned in the policy, it is called express warranties. There are certain warranties which are not mentioned in the policy. Such warranties are called implied warranties. It is an important condition in the insurance contract which is to be fulfilled by the insured. If there is breach of warranty, the insurer is not liable to pay compensation.

Express warranties

An express warranty 1s one, which is expressly stated in the policy of insurance it must be included in or written upon the policy. There is no limit to the number of express warranties, but those generally included in a marine policy are that the ship is seaworthy on a particular day, that the ship will sail on a specified day, that the ship will proceed to its destination without any deviation and that the ship is neutral and will remain so during the voyage.

Implied Warranties

Implied warranties are conditions not incorporated in a policy but assumed to have been included in the policy by law, custom or general agreement. These warranties are:

  1. Seaworthiness: A ship is deemed to be seaworthy when she is reasonably it in all respects to encounter the ordinary perils of the sea or the adventure insured. This warranty attaches only up to the time of the sailing of the ship. In a time policy there is no implied warranty that the ship shall be seaworthy at any stage of the adventure. In a voyage policy where the voyage is to be performed in stage, the ship must be seaworthy at the commencement of each stage, it must be fit to encounter the ordinary perils of the part and if the voyage policy is on goods, it must be fit to carry the goods to the destinations contemplated by the policy
  2. Legality of the Voyage: There is an implied warranty that the adventure insured is a lawful one and that the adventure shall be carried out in a lawful manner.
  3. Non-deviation: The warranty that the ship shall not deviate from its prescribed. Usual or the customary route is also an implied warranty. The risk does not attach ill the places of departure or destination of the ship are hanged, or if the ship takes the ports of call by an order different from the one mentioned in the policy. The insurer is discharged From his liability as from the time of devein, and also 1l there is unreasonable delay is excuse under certain circumstances.
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