Page 298 - DMGT303_BANKING_AND_INSURANCE

Unit 14: Marine and Motor Insurance

Implied Warranties: There are certain warranties, which are implied in every contract of marine Notes
insurance unless excluded expressly. These are:
1. Warranty of Seaworthiness: In a voyage policy the insured, at the time of affecting the
insurance has to give a warranty of seaworthiness i.e., the ship concerned is in every
respect fit for the voyage on which it is sailing.

The warranty of seaworthiness includes particulars of ship like:
(i) The ship must be sound as regards her hull.
(ii) The gear must be sufficient and must be fully equipped, officered and manned.
(iii) Ship must not be overloaded.

(iv) If the voyage is to be performed in stages, the ship must be sea worthy at the
commencement of each stage
(v) Seaworthiness also includes cargo worthiness i.e. it must be fit to carry the cargo.

2. Warranty of Non-deviation from path: In the case of voyage policy where a voyage is
contemplated between any two given ports there is an implied warranty of non-deviation
on the part of the insured. The insured is supposed to give an undertaking, that he shall
take the usual route taken by navigators, and shall not deviate except in cases where it is
excusable by the law. If the ship, without lawful excuse, deviates from the voyage
contemplated by the policy, the insurer is discharged from the liability as from the time of
deviation. It is immaterial in such a case that the ship regained her route before any loss
occurred. The intention to deviate is immaterial. There must be deviation in fact to
discharge the insurer from his liability under the contract.
What is a deviation?
(i) Where the course of the voyage specially designated in the policy, is departed from
or
(ii) Where the course of the voyage was not specially designated by the policy, but the
usual and customary course is departed from or

(iii) Where several ports of discharge were specified by the policy, but the ship did not
proceed to them in the order designated by the policy or
(iv) Where the policy did not specify the ports of discharge but the ship (which should
have) did not proceed to them in their geographical order.
Can the deviation be excused?
Deviation or delay is excused (justified) under the following circumstances:

(i) It is authorized by the contract (or)
(ii) It was caused by circumstances beyond the control of the master and his employer
(or)

(iii) It was caused by the barratrously conduct of the master or crew if barratry were one
of the perils insured against
(iv) It was necessary in order to comply with an express or implied warranty (or)

(v) It was necessary to save life or to help a ship in distress (or)
(vi) It was necessary to arrange medical or surgical aid for any person on board the ship
(or)

LOVELY PROFESSIONAL UNIVERSITY 293