Warranties in Marine Insurance :

A Warranty means a stipulation or term, the breach of which entitles the insures to avoid the policy altogether and this is so even though the breach arises through circumstances beyond the control of the warrantor. The following types of warranties are recognized under the Marine Insurance Act:

(a) Warranty of neutrality – where insurable property, whether ship or goods, is expressly warrantedneutral, there is an implied condition that the property insured shall have a neutral character at the commencement of the risk, and that, so far as the assured can control the matter, its neutral character shall be preserved during the risk.

(b) Warranty of good safety – the warranty that the subject-matter insured is warranted “well” or “in good safety”

(c) Warranty of seaworthiness of ship – 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 policy attaches while the ship is in port, there is also an implied warranty that she shall, at the commencement of the risk, be reasonably fit to encounter the ordinary perils of the port.

(d) Where the policy relates to a voyage which is performed in different stages, during which the ship requires different kinds of or further preparation or equipment, there is an implied warranty that at the commencement of each stage the ship is seaworthy in respect of such preparation or equipment for the purposes of that stage.

(e) A ship is deemed to be seaworthy when she is reasonably fit in all respect to encounter the ordinary perils of the seas of the adventure insured.

(f) 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

(g) In a voyage policy on goods or other movables there is an implied warranty that at the commencement of the voyage the ship is not only seaworthy as a ship, but also that she is reasonably fit to carry the goods or other movables to the destination contemplated by the policy

(h) Warranty of legality.- 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.