Warranties in Marine Insurance – Definition, Types & Significance (2025)

 Marine insurance is a specialized field governed by strict principles, one of which is the concept of warranties. In simple terms, warranties in marine insurance form the core contractual obligations that must be strictly adhered to by the insured. A breach of warranty regardless of its impact on a loss can result in denial of a claim or even cancellation of the policy.

In this blog, we’ll break down the concept of warranties in marine insurance, explore their types, examine their significance, and understand the legal implications of breaching them.

What is a Warranty in Marine Insurance?

A warranty in marine insurance is a promise or condition set out in the insurance contract that must be complied with absolutely and literally. It is a condition precedent to the insurer’s liability.

According to Section 35 of the Marine Insurance Act, 1906 (UK), a warranty is “a promissory condition which must be strictly complied with, whether material to the risk or not.”

Unlike other types of insurance, marine insurance treats warranties with extreme strictness. Even non-material breaches can void coverage.

Why Are Warranties So Important?

Warranties are critical for the following reasons:

• Risk Control: They help insurers assess and control the risks they are underwriting.
  
  

• Policy Clarity: They clarify the responsibilities of the insured.
  
  

• Legal Finality: Breach of warranty may discharge the insurer from liability as of the date of the breach.
  
  

Warranties ensure that the insured vessel or cargo adheres to specific conditions that influence risk exposure, such as sailing routes, seaworthiness, or crew competence.

Types of Warranties in Marine Insurance

Marine insurance warranties can be categorized into two main types:

1. Express Warranties

These are explicitly stated in the policy document. They can be written or printed and form part of the contract itself.

 Examples:

• The vessel will not sail through war zones.
  
  

• The ship must sail on or before a specific date.
  
  

• Use of a specific port or trade route.
  
  

Note: Express warranties override implied warranties if there’s any contradiction.

2. Implied Warranties

These are not written in the policy but are automatically assumed by law to be part of the marine insurance contract.

There are three main implied warranties:

a. Seaworthiness

The ship must be fit for the intended voyage at the commencement of the risk. This includes:

• Sound hull and equipment
  
  

• Competent crew
  
  

• Adequate fuel, food, and navigation charts
  
  

Applies to voyage policies (not time policies).

b. Legality

The voyage must be legal. If the ship is carrying contraband or operating in violation of international laws, the policy becomes void.

c. No Deviation

There should be no unjustified deviation from the agreed voyage route. Any unauthorized deviation, even if it does not cause a loss, can discharge the insurer from liability.

Legal Consequences of Breach of Warranty

A breach of warranty has strict consequences in marine insurance:

• The insurer is discharged from liability from the moment the warranty is breached.
  
  

• The breach need not relate to the cause of the loss for the insurer to reject the claim.
  
  

• Once breached, the policy cannot be revived unless the insurer waives the breach.
  
  

Example:
If a policy includes a warranty that the ship will sail by March 1st, and the ship departs on March 3rd, any loss after that may not be covered—even if unrelated to the delay.

Can a Breach Be Excused or Waived?

Yes, but under specific conditions:

• If the insurer waives the breach explicitly or by conduct
  
  

• If the breach is remedied before any loss occurs and the insurer agrees
  
  

• In some cases, statutory reforms (in certain jurisdictions like the UK’s Insurance Act 2015) may limit the effect of a breach if it did not contribute to the loss
  
  

However, under traditional marine law, strict compliance is required, and relief is rarely granted.

Modern Trends and Reforms

Modern legal systems are re-examining the rigid approach to warranties:

• UK Insurance Act 2015: Introduced "suspension of liability" instead of automatic discharge. Insurer liability is suspended during the breach but may resume if the breach is remedied.
  
  

• Australia and Canada have adopted similar reforms to protect the insured from disproportionate consequences.
  
  

Still, many marine insurance contracts globally continue to operate under the older, stricter rules—especially in international or maritime commercial settings.

Summary Table: Warranties in Marine Insurance

Type	Example	Enforceability
Express Warranty	“Ship will not enter war zone.”	Must be followed exactly
Implied - Seaworthiness	Ship must be fit for voyage	Applies to voyage policies
Implied - Legality	Cargo and voyage must be lawful	Always applicable
Implied - No Deviation	No unjustified change in voyage route	Always applicable

Final Thoughts

Warranties are not just formalities, they are the foundation of obligations in a marine insurance policy. Understanding and complying with both express and implied warranties is essential for ensuring that your claims are honored and your policy remains valid.

Whether you're an underwriter, broker, shipowner, or marine cargo manager, it’s crucial to take warranties seriously. Breach one—and your entire policy could collapse, leaving you exposed to significant financial losses.