Warranties in Insurance

There are certain conditions and promises in the insurance contract which are called 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 affirms or negatives the existence of a particular state of facts.”

Warranties which are mentioned in the policy are called express warranties. There are certain warranties which are not mentioned in the policy.

These warranties are called implied warranties.

Warranties which are answers to the question are called affirmative warranties.

The warranties fulfilling certain conditions or promises are called promissory warranties.

Warranty is the very important condition in the insurance contract which is to be fulfilled by the insured. On breach of warranty the insurer becomes free from his liability.

Therefore, insured must have to fulfil the conditions and promises during the insurance contract whether it is important or not in connection with the risk.

The contract can continue only when warranties are fulfilled. If warranties are not followed, the contract may be cancelled by the other party whether risk has occurred or not or the loss has occurred due to other reason than the waiving of warranties.

However, when the warranty is declared illegal and there is no reverse effect on the contract, the warranty can be waived.