Warranty (Insurance)
A5. Maritime Law, private and commercialDefinition
Term whose breach discharges the insurer from liability (Marine Insurance Act 1906, as amended by the Insurance Act 2015).
A warranty in marine insurance is a term the assured must comply with exactly, whether or not it is material to the risk. Under the Marine Insurance Act 1906 a breach historically discharged the insurer from all liability from the moment of breach, even where the breach had nothing to do with the loss. The Insurance Act 2015 softened this: breach now suspends cover only while the assured is in breach, and the insurer cannot rely on a breach unconnected to the actual loss. The change reshaped how hull and cargo warranties are litigated.
Source: Marine Insurance Act 1906; Insurance Act 2015